No Claim Bonus

[Rahul]

Could you please tell me what is NCB and how NCB (No Claim Bonus) is Calculated?

Similar Threads:

• No Claim Bonus : Claiming 3 year old NCB?
• Mediclaim - What are No Claim Bonus Rules?
• Article - What is a no-claim bonus for a motor insurance policy?
• Article - No-claim Bonus (NCB)
• Article - No-claim bonus on a motor policy is transferable

[Investorboy]

If you do not have any insurance claim/s, you get NCB (No Claim Bonus) at the rates mentioned below (based on no of years of No claim) - the premium is accordingly reduced. The NCB increases each year (as indicated below) till no claim/s is/are there -

The rates of the NCBs (No Claim Bonus) -

20% on 1st renewal.
25% on 2nd renewal.
35% on 3rd renewal.
45% on 4th renewal.
50% on 5th & subsequent renewals.


Important Note - That the NCB turns 0% on insurance claim & restarts afresh (as mentioned above) from the subsequent renewal.

If you do not have any insurance claim/s, you get NCB (No Claim Bonus) at the rates mentioned above - the premium is suitably reduced. The NCB increases each year (indicated above) till no claim/s is/are there

Example - You have no claims during the first 3 years, you have earned NCB of 35% - but before the 4th renewal if you have claims, the NCB will be lost (become 0%). If you thereafter have no claims in the 4th year, you get NCB at the time of 5th renewal at 20% (starts afresh from the lowest) ...and so on.

[rohit]

I have bought car insurance from TATA - AIG and in the second year I bought insurance for my vehicle from IFFCO-TOKIO. My question is -

1.How to know how much of no claim bonus I have accrued?

2.Can I change my inusrance with various companies every year and still claim no claim bonus?

[Investorboy]

Answers to your questions -

1) NCB is mentioned in the Policy.You can submit the Renewal notice sent by the First Insurance Company, before the renewal with the second company (IFFCO-TOKIO in this case)

2) Yes, even if you change the insurance provider every year (or at whatever periodicity), NCB gets transferred/carried forward.

[Rahul]

I am planning to sell my old Maruti 800 car , which is in my father's name and am buying a new car in my name. I have a 50% NCB as mentioned in the Insurance policy of my old car, which is valid upto 31-03-09. If I handover the Insurance policy along with RC book to buyer of my old car, can I still enjoy the NCB benefit on new car in my name? My new car will be delivered to me with in 2 months. What other papers I need to sought from the buyer so that I do not face in concequencies after a sale date?

[Investorboy]

You need to handover the Insurance Policy to the buyer, of course - along with the RC Book & TTO form duly signed/discharged in favour of the buyer. That will not deprive you of the NCB transfer to your new car. But in your case you can get the NCB only if you buy new car in the name of your father, not in your case.

[Aakash]

Will I get NCB at renewal, if I had lodged a claim but the claim is neither approved or rejected by the insurer?

[Minal]

If you have raised a claim against a policy, you won't get NCB (it's No Claim Bonus).

[Aakash]

If you have raised a claim against a policy, you won't get NCB (it's No Claim Bonus).

But the claim is neither accepted or rejected, if later on the insurance company reject the claim would I get an NCB refund back?

[Rahul]

It's a bit subjective issue when you have lodged a claim, some insurer take it as a claim is registered, whether not accepted OR Rejected later on. But NCB is gone, when you lodge a claim.