Lower Your Car Policy Premium with No Claim Bonus

Lower Your Car Policy Premium with No Claim Bonus

Insure your  Brand New Car

Thing you should know about No Claim Bonus

  • Author :
  • TATA AIG Team
  • Published on :
  • 04/05/2021

Rising petrol and car costs have made owning and maintaining cars quite expensive. The added problem of heavy traffic in most cities also means that your car can get damaged easily. Thus, getting insurance for a car can surely be of help, more so because of the No Claim Bonus offered by car insurance companies.

What is ‘No Claim Bonus’?

When we talk about No Claim Bonus or NCB, it is exactly what the name suggests. NCB is a reward offered by insurance companies to their clients for not making any insurance claims during their policy year. It entails a discount on the car insurance renewal premium and is denoted as a percentage discount on the own-damage component of the insurance premium.

When you pay car insurance online, the No Claim Bonus discount helps reduce the premium payments, thus, helping you save on your car insurance.

5 things about NCB in car insurance

NCB in car insurance is more or less similar to the NCB of other insurance policies covered under general insurances. However a there a few points about NCB that one must be aware of before getting car insurance:

NCB is transferable, but not shareable

The No Claim Bonus is a reward given to the owner-driver, so it is retained by the owner, even if they move the policy to another insurer or replace their old car with a new one. The NCB of the old car can be transferred to the new car. With Tata AIG, we allow you to transfer your NCB to the new policy you buy from us. The policyholder simply has to get an NCB Reservation Letter from the previous insurance company. This certificate is valid for 3 years.

Additionally, as mentioned above, the NCB is for individuals and not their car. Thus, its benefits can be transferred from your previous car to your new car and also transferred to the legal heir in case he/she inherits the car.

However, the NCB claim cannot be shared between two policies of the same policyholder. If you have car insurance and a bike insurance policy, the NCB discount from your car insurance cannot be shared with the two-wheeler insurance.

NCB cannot be availed in the first policy year

Since the concept of NCB is that it is a reward for not filing any claims in the previous year, NCB is not available in the first year of the car insurance policy. However, if you buy a new car, you can transfer your old NCB discount to the new car insurance policy. This way, the policyholder can enjoy the No Claim Bonus on the new car from the first year.

NCB is available only with comprehensive cover

NCB is available with comprehensive cover as it is applicable on the own-damage component of the car insurance premium. In India, where your vehicle can get damaged at any time because of heavy traffic and lack of traffic management, it is important to get a comprehensive cover. By doing an online car insurance check, you can get a comprehensive car insurance policy that will provide coverage for the losses incurred during an accident and save you from the repair bills.

NCB can be protected even after one claim

While most people will not claim insurance for small damages and laterally avail the benefits of No Claim Bonus. However, at times, there can be unavoidable circumstances where the user will have no choice but to claim insurance and let go of their NCB. To protect against such situations, users can protect their NCB by buying an add-on cover - No Claim Bonus Protector. This add-on cover protects your NCB against a certain number of faults, i.e., insurance claims. Thus, it helps you retain your NCB discounts even after filing one insurance claim in the previous policy year.

Timely renewals for availing NCB bonus

The NCB bonus is applied to the insurance premiums during the offline or online car policy renewal. Thus, getting your car insurance policy renewed on time gets more cost-efficient and cheaper because of the 20-50% discount through NCB. The bonus increases for every consecutive year that you make no claims.

Car Insurance from Tata AIG

When buying a car in India, getting car insurance is essential no matter where you belong to. At Tata AIG, we make the purchase as well as car insurance renewal process easier and hassle-free for you. Our customised plans, along with beneficial add-ons like NCB protection, are client-specific and benefit you in the long run.

Comprehensive car insurance plans are easy to buy and policyholders can also pay the insurance premiums online. At Tata AIG car insurance, we are committed to ensure a smooth workflow and make the process of insuring your car hassle-free on both ends.


When driving a car, getting it insured is as essential as having your driving licence. Your car insurance not only saves you from piles of repair bills in case of any damage but also gives you the benefit of no claim bonus. As safe drivers and responsible car owners, users can be sure to hold onto the benefits of the NCB.

Here are some Frequently Asked Questions you may want to refer to:

1. How does car insurance calculate no claims bonus?

The No Claim Bonus will be applicable only after the first year of the policy. If no claim has been raised during the first year, the insurance provider will offer a 20% discount for the second year on the premium amount. The discount percentage will go up progressively every claim-free year.

2. Do insurance companies check no claims bonus?

Yes. Every insurance company will verify the No Claims Bonus details. If you make any false declarations, they might cancel your insurance policy.

3. How do I know if I have no claims bonus?

The No Claim Bonus is an additional feature that can be added to your car insurance policy. You can check the discount you avail of on your car insurance premium at the time of policy renewal. The discount will be categorised as ‘NCB discount’.

4. How does the No Claim Bonus affect car insurance?

The No Claim Bonus is like a reward to the insurer for not having raised a claim in the policy year. The discount is applied on the car insurance renewal premium, which leads to you paying lower premiums for every claim-free year.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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