NCB in Car Insurance

Your no claims bonus only applies to one car. So, if you treat yourself to a brand-new second car on your birthday, you’ll have to get it insured separately – and build up its own NCB by not making a claim for it. 

If you’re changing insurance companies, you can transfer your no claims bonus from one insurance provider to another. And if you’re transferring to a new insurer at the time of your policy renewal, all you must show is your last year’s policy document or renewal notice mentioning your NCB.  

No, the NCB doesn’t cover the part of your premium that’s for third-party liabilities, which accounts for around 15-20% of your premium. Which means that you can’t avail of NCB if you have only third-party insurance – you will need to have Comprehensive insurance or Own Damage car insurance to be eligible for NCB. A third-party claim, however, doesn’t affect your NCB.

If your NCB is zero, you will not be able to get any discount at the time of renewing your car insurance policy.

The maximum NCB discount for car insurance in India is 50%. It is applicable only if no claims have been raised for five years in a row.

No, a No Claims Bonus is not an add-on. If you bought an Own Damage or Comprehensive car insurance policy, you are eligible for a no claims bonus. Yes, if you wish to protect the no claims bonus you have earned over years of not having any claim, you can purchase an addon of No Claim Bonus Protection. 

Your NCB is valid until you make your next claim.

You can check your applicable NCB in car insurance by referring to the NCB slabs, which are applicable during the policy renewal process. The NCB calculation will also be mentioned in your policy document.

You can get an NCB certificate by contacting your previous insurer and requesting them for an NCB certificate.  

IDV or Insured Declared Value is the maximum amount you will be compensated for if your car is stolen or suffers a total loss. While NCB is the discount given on the premium when one does not make a claim in the policy year. This discount is used at the time of the next car insurance renewal.

You can protect the accumulated NCB by opting for the NCB protection cover during your next renewal process.  

If you haven’t made any claims in your first policy year, you will be given a 20% discount on your car insurance premium while you renew your car insurance policy. Just make sure you renew before your policy expires! Consequently, as the years go by without any claims made, your discount will keep increasing from 20% to up to 50%! 

If you raise a claim even for a minor incident, your accumulated NCB will become zero. A claim is a claim no matter how major or minor the incident is, and it will affect the NCB calculation.

New drivers who want to take care of their brand-new car while also saving money can get this cover. It will let you raise up to two claims in a year while keeping their NCB component. This will result in a cheaper car insurance premium on the next renewal.

Yes, your No Claim Bonus discount is applicable even if you change the type of car. For example, if you change your car from a sedan to an SUV, then your NCB will be transferred to your new car, no matter its type.

No, you cannot do this since there is no option to cash-out NCB. Also, it is given as a discount on policy renewal and is only applicable on Comprehensive insurance, which is non-mandatory policy.

In such a case NCB will not be applicable as it is applied only at the time of policy renewal when there is no claim, and car accident or theft do not meet this condition.  

No, you cannot retain NCB in car insurance in case of lapsed insurance policy.  

Yes, you will lose out on your NCB if you cancel your insurance completely before it expires.  However, if you’re only looking to change your insurer, it’s better to declare your NCB or get your NCB certificate issued from your existing insurer to your new insurer and continue to benefit from your existing NCB instead of cancelling it altogether.  

NCB is terminated if: You have made a claim during a policy year. Thus, no NCB discount will be given in the next year. If you have not renewed your car insurance policy within 90 days from the date of expiry of the existing policy.

NCB is terminated if:

• You have made a claim during a policy year. Thus, no NCB discount will be given in the next year.
  
• If you have not renewed your car insurance policy within 90 days from the date of expiry of the existing policy.
  

The maximum NCB applicable on car insurance is up to 50%. In the first consecutive year of no claims, your NCB starts at 20% and eventually goes up to 50% if you’ve had no claims in five consecutive years. 

Yes, all insurance companies do check if the no claim bonus and other details declared while buying your car insurance company was right or not. In case of any false declarations made, your insurer may not issue or cancel (if already issued) your car insurance policy.

No, you don’t lose your non-claim bonus if you stop driving. You only lose your NCB if you make a claim in the policy year, or don’t renew your car insurance policy before its expiry date. 

After a claim, you will lose all of your NCB discount. However, if you have opted for the NCB protection cover, then you may not lose your NCB only for a few specific types of repairs. This amount depends on how much accumulated NCB you have and the policies of the insurance company.

After a claim, you will lose all of your NCB discount. However, if you have opted for the NCB protection cover, then you may not lose your NCB only for a few specific types of repairs.

This amount depends on how much accumulated NCB you have and the policies of the insurance company.

You cannot claim NCB as it will be calculated automatically and applied as a discount on your policy renewal, if you meet the required terms and conditions.

Only in certain types of life insurance, like endowment or money-back plans. These may offer bonuses or maturity benefits. Pure term insurance doesn’t offer bonuses for not claiming, it’s designed for protection, not returns.

Only in special like “term insurance with return of premium”. Standard term insurance plans don’t reward you for not claiming. They’re designed to pay out only if something happens. If you survive the term, there’s no payout or bonus.

Yes. Many health insurance plans offer a bonus for every claim-free year, either by increasing your sum insured or giving a discount on renewal. It works similarly to NCB in car insurance but applies to your health coverage.

Yes. Insurers re‑verify your claim history at every renewal. If an incorrect NCB declaration is detected later, the discount can be reversed and the premium difference may be recovered.

Over‑declaring NCB is treated as misrepresentation. The insurer may cancel the discount, charge additional premium, or adjust claim payouts if the error is discovered later.

Yes. Under‑declaring only means you pay a slightly higher premium, while over‑declaring can lead to verification issues or claim complications.

In serious cases, yes. Incorrect NCB declaration can lead to claim rejection or proportionate settlement, especially if it affects risk pricing.

If the claim is officially withdrawn and no payment is made by the insurer, NCB is usually not affected. The claim must be closed as “no payout.”

No. NCB impact depends on whether an Own Damage claim is paid, not on how small or large the claim amount is.

No. NCB rules apply equally to cashless and reimbursement claims if the insurer pays for repairs.

If the claim results in an Own Damage payout, NCB resets unless protection applies or full recovery is made from a third party.

Often yes. At higher slabs, the long‑term premium increase from losing NCB can exceed the immediate repair cost.

No. It allows only a predefined number of claims in a policy year. Exceeding that limit resets the NCB.

It offers maximum value at higher slabs (35%–50%). At lower slabs, the cost‑benefit may be limited.

Yes. NCB depends only on claims, not on vehicle usage.

The NCB percentage remains the same, but the rupee savings change because they are applied on the Own Damage premium.

No. NCB can be applied to only one active policy at a time.