What is “No Claim Bonus”?
No Claim Bonus (NCB) or Discount is the benefit accrued by the policyholder if there is no claim lodged during the previous policy period.
How much NCB you can Get?
As per current insurance industry norms, it ranges from 20% to a maximum of 50%, based on successive claim free years. If, however, a claim is lodged, the No Claim Bonus is lost in the subsequent policy period.
Things you should know about NCB
1. You can earn NCB, only on comprehensive car insurance. No NCB for third party insurance.
2. NCB only applies to a single car and can be transferred to an another car, but it can’t be applied to an additional car or another vehicle.
3. NCB can be transferred from one vehicle to another, as long is policyholder is same.
4. NCB can also be transferable from one insurer to another. NCB is given to insured and not to the insured vehicle. Hence, on transfer of the vehicle, the insurance policy can be transferred to new owner but not the NCB. The new owner has to pay the difference on account of NCB for the balance policy period.
5. Annual insurance renewal letter may serve as proof of NCB.
6. Not all insurers will automatically send you proof of NCB.
7. Some insurers will not accept a photocopy of your proof of no claims discount letter, and will ask that you send the original. If this is the case, make sure that you keep a photocopy for yourself.