No Claim Bonus in Car Insurance: What You Need to Know
Introduction
If you’re a safe and cautious driver, you deserve to be rewarded — and that’s where No Claim Bonus (NCB) comes in. It’s a smart way to lower your car insurance premium just for doing what you’re supposed to: not filing any claims!
But many people don’t understand how it works or how much they can actually save. This article breaks it all down for you — in plain English.
Basics of No Claim Bonus
No Claim Bonus is a reward given by insurance companies to policyholders who do not raise any claim during their policy period. It’s like a thank-you gift for being a responsible driver.
Over the years, the NCB can grow significantly, offering up to 50% discount on your insurance premium.
How No Claim Bonus Works
When you don’t file any claims during your policy term, your insurer applies a discount on your next premium under NCB.
Typical NCB Percentage Table:
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After 1 claim-free year: 20%
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After 2 years: 25%
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After 3 years: 35%
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After 4 years: 45%
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After 5+ years: 50%
If you raise even a single claim (unless protected by an add-on), you lose the bonus and go back to square one.
Benefits of No Claim Bonus
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Lower Premiums: Who doesn’t love discounts? With NCB, your premium drops with every claim-free year.
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Promotes Safe Driving: It’s an incentive to be more responsible on the road.
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Long-Term Savings: Over time, these discounts stack up into significant savings.
How Much Can You Actually Save?
Let’s say your car insurance premium is ₹10,000. If you’ve had no claims for five years, your NCB would be 50%, slashing your premium to ₹5,000. That’s a straight ₹5,000 saved — just for driving safely!
️ NCB vs Other Discounts
While there are many ways to save on car insurance (membership discounts, loyalty bonuses, etc.), NCB is unique because it’s based purely on your behavior.
And yes, it can be combined with other discounts for even better deals.
Transferring Your NCB
You don’t lose your NCB if you:
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Switch insurers
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Sell your old car and buy a new one
It’s linked to you, not the vehicle. Your new insurer will honor your existing NCB, provided you show proof — usually a certificate from your previous insurer.
NCB Retention Add-On
This nifty add-on allows you to retain your NCB even after making a claim (usually one allowed per year). It’s a great idea if you’ve built up a big bonus over time and don’t want to lose it due to a single incident.
❌ Losing Your NCB: What Causes It?
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Making a claim: One small repair claim = 0% NCB next year.
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Lapsed policy: If you don’t renew within 90 days of expiry, your NCB vanishes.
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Wrong transfers: Mistakes during policy renewal or insurer change can affect your NCB history.
♻️ Can You Reclaim a Lost NCB?
Sometimes. If your policy lapsed but it’s still within the grace period, or if a claim was wrongly processed, you might get it reinstated by contacting your insurer and providing the right documents.
Car Theft or Total Loss: What Happens to NCB?
Unfortunately, if your car is stolen or completely totaled, you’ll have to make a claim, and your NCB resets to zero — unless you had an NCB protector add-on.
Should You File Small Claims?
Not always. If the repair costs are just a bit more than your deductible, it might be smarter to pay out of pocket and preserve your NCB for the long haul.
Tips to Maximize Your NCB
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Keep your car well-maintained
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Drive defensively
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Don’t claim for small dings or scratches
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Consider NCB protection if your bonus is high
Myths About NCB
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“NCB belongs to the car.” False. It’s assigned to you, the driver, not the vehicle.
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“You lose it if you change insurers.” Nope! It’s fully transferable.
JioInsure’s NCB Advantage
JioInsure makes it easy to:
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Track your NCB status
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Transfer NCB across plans
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Add NCB protection at checkout
Their interface is simple and user-friendly, and you get clear transparency on how much NCB you’re eligible for each year.
Conclusion
No Claim Bonus isn’t just a discount — it’s a reward for your safe driving. With potential savings up to 50%, it’s one of the best tools to reduce your car insurance costs. Just drive smart, avoid unnecessary claims, and enjoy the perks year after year.
❓ FAQs
1. Is NCB transferable between insurers?
Yes, you can transfer your NCB when you switch to a new insurance provider. Just provide your NCB certificate or renewal notice.
2. What if I miss renewing my policy?
You’ll lose your NCB if you don’t renew within 90 days of expiry.
3. Does NCB apply to third-party insurance?
No. NCB applies only to the own damage portion of your policy, not third-party insurance.
4. How can I check my NCB status?
You can check it on your policy document, renewal notice, or by contacting your insurer directly.
5. Can I transfer NCB to another person?
No. NCB is non-transferable between individuals, unless in case of inheritance due to the policyholder’s death.
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