Your car insurance premium depends on various factors like geographical location, condition of the vehicle, make and model of the car, etc. Therefore, you may find an increased premium amount during car insurance policy renewal. The best way to calculate your car premium is by using a car insurance calculator .
You can reduce the premium while renewing your policy with the accumulated NCB. Now, let’s see how NCB is calculated.
What is a No Claim Bonus in Car Insurance?
NCB in insurance is a benefit insurance providers give policyholders for filing any claims during the policy period. Car insurance with no claim bonus is an excellent way to save on your car insurance premiums.
Essentially, the longer you go without filing a claim, the higher the NCB percentage you will receive. In India, NCB can help four-wheeler owners to reduce their insurance policy premiums by up to 50%. Therefore, the NCB can be a great incentive to avoid accidents and drive safely.
How to Calculate NCB For Car Insurance?
No claim bonus in car insurance ranges from 20% to 50%, depending on your insurer and the years of claim-free driving. Your insurer applies the No Claim Bonus (NCB) percentage to your car policy premium, resulting in lower insurance premiums. There is no No Claim Bonus calculator. Instead it is based on the number of claim-free years you have.
However, it is important to know that if you make any claims, the NCB percentage will reset to zero. Additionally, track the number of claim-free years to work out your NCB percentage and take benefit from discounted premiums. Here is a table depicting typical NCB discounts for a number of claim-free years.
| Number of Claim-Free Years (All Vehicles) | NCB Discount |
| 1 claim-free year | 20% |
| 2 consecutive claim-free years | 25% |
| 3 consecutive claim-free years | 35% |
| 4 consecutive claim-free years | 45% |
| 5 consecutive claim-free years | 50% |
Benefits of No Claim Bonus Insurance
Affordable Premiums
You can save significant money on premiums during the car insurance policy renewal if you have a claim-free record.
NCB is Granted Directly to the Policyholders
The insurance company grants the NCB directly to the policyholder, not the insured four-wheeler. Therefore, if you ever sell the four-wheeler, the NCB will remain intact.
Transferable to Another Four-Wheeler or Insurer
You can transfer the NCB to the new policy if you buy a new four-wheeler. Additionally, if you plan to switch to another insurer, you can still transfer the NCB.
How to Transfer No Claim Bonus to a New Car Insurance Policy
To transfer NCB in insurance, you must inform the new insurer and provide information like the previous car insurance company’s name, previous policy number, and the exact NCB. Your new insurer will transfer the NCB to the new policy.
For transferring No Claim Bonus Through an agent or Offline, follow the steps below:
- Contact your former insurer.
- Request an NCB transfer and provide all necessary documents.
- The insurance company will provide an NCB certificate.
- Submit the certificate to the new insurer to complete this process.
To Wrap It Up
For every claim-free year, you gain No Claim Bonus in car insurance and enjoy reduced premiums at renewal. This would further be beneficial while purchasing new car insurance. The No Claim Bonus benefit encourages drivers to avoid damages and drive safely on roads, reducing the risk of accidents.
