How Can You Claim NCB Bonus for Your Car Insurance?

A No Claim Bonus (NCB) is a bonus offered by an offline and online auto insurance provider to a policyholder who has not made any claims during the policy period over his insurance for the car. Over time, a No Claim Bonus will be accrued as a discount on premiums. On the own damage premium, the NCB discount varies from 20% to 50%.

How does NCB work?

The No Claim Bonus comes into effect after the first policy year, provided you do not file any claims for damages. Since you have no claim-free history before you purchase your first online auto insurance policy, you are usually ineligible for any NCB discount on the rate charged (except in the unusual event of NCB transfer).

If you renew your car insurance policy for the first time, you will get a 20% NCB if you haven't claimed in the previous year. This discount grows slowly with each claim-free year, reaching a limit of 50% after five claim-free years. The discount table below shows how the discounts function that the online car insurance calculator utilises. How to claim NCB with your car insurance policy?

Although it might be tempting to file a claim any time your vehicle sustains a minor injury, it is wise to do so after doing a cost-benefit study. This is because even a single claim can lead your NCB back to 0. By avoiding minor claims, you could save a lot of money in the form of a clear discount on the next year's premium, thanks to the No Claim Bonus. For example, if you have a claim-free record for a Honda City car purchased in 2011, you can save about ₹6,000 (a 45% discount) in 2015.

Also, certain conditions should be taken into account. If you have an old vehicle that has accrued a 50% NCB and you want to sell it, you can opt-out of minor claims for the time being, if any, so that the NCB can be used to get a significant discount on your new car's premium. When a claim is submitted, the NCB is reset to 0 (zero), and the computation of NCB as seen in the table above begins all over again in subsequent policy years. For example, if you have not filed a claim in the previous three years, you will get a 35% NCB discount on your premiums this year. If you file a claim this year, the NCB will be restored to zero when you renew your auto insurance policy for the next year.

What is an NCB protector in car insurance?

You could file 1–2 claims in a policy tenure (depending on the policy guidelines) without damaging your NCB if you have an NCB Protector Cover. TATA AIG car insurance policy offers a range of car insurance add-ons with comprehensive car insurance. One such add-on is the NCB Protector.

The NCB Protector, as the name implies, ‘protects' your NCB from 1-2 claims and helps you to keep your subsidised premium rates even though you file one or two claims for the policy year. You can choose this add-on for broader coverage if you have a comprehensive car insurance package from Tata AIG. And if you claim within the policy era, the NCB Protection Cover (Add-on) is built to keep your NCB part – which is the covered No Claim Bonus – active. It's important to note that the number of claims one may make is limited by the terms and conditions.

**How to maintain the validity of your NCB? **

The claim-free years must be consecutive for NCB to be legitimate. If you file even a single claim, you will forfeit the previous year's NCB. If you have accumulated the NCB points over the last few policy years, here are a couple of ways to maintain its validity -

• Renewing your car insurance policy before the expiry date.
• Transfer the NCB from your previous policy if you buy new online auto insurance

However, the validity of the No Claim Bonus is time-bound and can be retained for a period of three years by which you should either renew your existing policy or transfer the discount to a new policy.

**Conclusion **

As every decent driver would tell you, driving isn't only about being careful about yourself but also about defending yourself from the actions of other drivers. While it is not always possible to avoid filing a claim, extra cushioning is provided by an NCB Protect cover so that you need not have to worry about losing out on your No Claim Bonus discount.

Some commonly asked queries regarding NCB discount

1. What is no claim bonus protection in car insurance?

The No Claim Bonus protection is an add-on that allows the policyholder to make a certain number of claims without affecting the No Claim Bonus discount.

2. How do I find out my no claims bonus?

The NCB discount is applied to your motor insurance premium at the time of renewal. Additionally, you can also get an NCB Certificate from your insurer for further confirmation.

3. How is no claim bonus given?

The NCB is a discount benefit that ranges from 20% to 50% on your premium amount and is offered to the insured after a claim-free year. During renewal, the NCB discount is applied to the own-damage premium amount.

4. What is the maximum no claim bonus for car insurance?

The highest NCB that can be applied to the auto insurance premium is 50%. Your NCB begins at 20% after the first year of no claims and gradually increases to 50% after five years of no claims.