No Claim Bonus (NCB)

WHAT IS NCB

No Claim Bonus (NCB) is rewarded to the owner of the vehicle, who is also the policy holder for No Claim/Claims in the previous policy year. It can be accumulated over a period of time. NCB is crucial to reducing car insurance premium. NCB rewards you for being a good driver and helps you on your motor insurance.

Highlights of NCB

  • NCB can be transferred from one vehicle to another as long as policyholder is same
  • NCB is also transferable from one insurer to another


NCB Calculation*

New Car First Year Renewal Second Year Renewal
IDV ₹10,000,00 ₹8,50,000 ₹7,65,000
Premium (OD) ₹26,808 ₹22,788 ₹20,509
NCB 0% 20% 25%
NCB Amount 0% ₹4,558 ₹5,128

*This is OD Premium and not Final Premium
*Sample Calculation

How does NCB work?

No claim bonus increases every year as per the following table:

All Types of Vehicles % Discount on OD* premium % Discount if a claim is made
No claim made or pending during the preceding full year of Insurance 20% 0%
No claim made or pending during the preceding 2 consecutive years of insurance 25% 0%
No claim made or pending during the preceding 3 consecutive years of insurance 35% 0%
No claim made or pending during the preceding 4 consecutive years of insurance 45% 0%
No claim made or pending during the preceding 5 consecutive years of insurance 50% 0%

*OD= Own Damage