All You Need To Know About NCB In Car Insurance

June 16, 2020 John Evans 0 Comments


Buying a car has become increasingly convenient with easy finance options available. Various financial institutions offer a car loan facility as high as up to 90% of the value of your car. It helps in achieving one’s dreams of owning a car. A car is no more luxury but a necessity. Travelling to work becomes comfortable with the flexibility to move at your own pace. Apart from work, you can enjoy road-trips with family and friends in that dear car of yours.

But owning a car is not all fun, you need to maintain it too. Apart from getting it serviced at timely intervals, there are other legal aspects that one needs to fulfil like obtaining a pollution certificate. One might say insurance is also compliance, but in fact, it is a necessity to protect you and your car at a minimal cost.


When you avail a car insurance cover, it is not in each policy period that you will file a claim for damages. At such times, a benefit is passed to the policyholder in case of no claims. It is called a No Claim Bonus (NCB).

Let us learn more about NCB -

     No Claim Bonus is available in the form of concession - No claim bonus can be availed in the form of a reduction in premiums at the time of car insurance renewal. A no claim bonus ranges between 20% up to a maximum of 50%. At each renewal date, it goes on increasing subject to its upper limits. Your first claim-free year will earn you a bonus at 20%, which grows at 5% for every subsequent year without claims.

     No Claim Bonus is associated with the policyholder - There is a misconception that the NCB is related to the vehicle for not making any claims, whereas the truth is different. A no claim bonus facility is associated with the individual policyholder. Knowing this, you can ensure that you avail continued benefits of an NCB even in case you change your car. You have to intimate the insurer at the time of renewal of your car insurance about the change in the vehicle. Doing this, the insurance company passes on the benefits to your next vehicle too. A thing to note is that NCB concession is applicable with respect to the own damage portion of your premiums and not the third-party liability.

     Third-party insurances do not have No Claim Bonus - What this means is that the benefit of not claiming any damages during the year is available in case of a comprehensive policy only. Third-party car insurance plans do not have any concession for not claiming during the previous policy year at the time of car insurance renewal.

     Avoid filing claims for small repairs - Making an insurance claim for minor repairs can be trivial. You might be with the notion to utilise the available insurance cover but carrying out a cost-benefit analysis is essential. At times, incurring the cost of repairs is beneficial than letting go a no claim bonus. Make sure you compare the expenses towards repairs and accordingly file a claim for insurance.

Remember the points mentioned above while using a car insurance premium calculator. It can help in approximating to the NCB value, so you get the best insurance cover for your car.

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