NCB (No Claim Bonus) in Car Insurance

The no claim bonus in car insurance is a reward given to policyholders who do not raise a claim during their policy year. It comes in the form of a discount on the renewal premium, helping car owners save significantly over time.

Many wonder: What is NCB in car insurance and why does it matter? The NCB meaning in car insurance is straightforward; it is an incentive that grows with each claim-free year, often reaching up to 50 per cent after five consecutive years. However, even a single claim can reduce or reset the accumulated bonus.

Simply put, it encourages safe driving and responsible behaviour.

Hence, many policyholders choose to handle minor expenses themselves, preserving their NCB and enjoying long-term savings on their policies.

Also Read: 5 Things You Should Know About No Claim Bonus

Lower Premiums on Renewal

No claim bonus in car insurance rewards policyholders with a discount on renewal premiums. Each claim-free year increases your savings, as this discount starts at 20% after the first claim-free year. With TATA AIG, you can enjoy premium reductions of up to 50% over time. This benefit makes a car insurance policy more affordable for responsible drivers without reducing your coverage benefits.

Encourages Safe Driving

The No Claim Bonus offered by TATA AIG acts as an incentive for maintaining good driving habits, as we value this commitment to road safety. Since a single claim can affect your accumulated NCB, policyholders naturally become more careful on the road. Fewer accidents, better discipline and safer driving habits mean greater protection for you and your loved ones.

Gradual Growth in Savings

The no claim bonus in car insurance increases year after year, offering bigger rewards for long-term safe drivers. While the immediate benefit of our NCB is a lower premium, its impact is more significant in the long term. With every claim-free renewal, the discount percentage increases until it reaches the maximum level. This step-up growth ensures that your loyalty and careful driving are always acknowledged.

Transferable Across Vehicles and Insurers

One major advantage of a no claim bonus in car insurance is its portability as the NCB is tied to the policyholder and not the vehicle. You can transfer your accumulated NCB to a new car, or even when you switch to TATA AIG from another insurer. This flexibility ensures that your efforts to maintain a claim-free record always stay with you.

Inheritance Benefits for Families

With TATA AIG, the no claim bonus in car insurance is not lost in case of the policyholder’s unfortunate demise. The accumulated NCB can be smoothly transferred to immediate family members, such as the spouse, children, or parents. This ensures that the family continues to benefit from reduced premiums, keeping the car insurance policy affordable and accessible.

Flexibility During Vehicle Transfer

If you sell your car and buy a new one, TATA AIG allows you to carry forward your hard-earned NCB to the new policy. This transfer is possible when the new car insurance policy is purchased within three years of the sale. It safeguards your benefits and encourages long-term savings.

Recognition of Overseas NCB

TATA AIG also recognises NCB earned abroad, offering policyholders the chance to transfer their entitlement to a new policy in India. If the car policy is purchased within three years of the expiry of the overseas policy, customers can enjoy the same slab benefits, ensuring seamless value continuity.

Employee Benefits During Transfer

In situations where a company-owned vehicle is allotted and used exclusively by an employee, TATA AIG permits the no claim bonus in car insurance earned to be transferred to that employee if the ownership is shifted to their name. This unique benefit ensures fairness and rewards individuals for maintaining a claim-free record.

Discourages Small Claims

NCB promotes smart financial decisions by discouraging minor claims. Many car owners prefer handling small repair expenses themselves to protect their accumulated bonus. This strategy saves you more in the long run and helps you retain bigger discounts with TATA AIG.

At TATA AIG, the No Claim Bonus (NCB) begins from the second year of your car insurance policy. When you complete your first policy year without making a claim, you earn a 20% discount on your Own Damage (OD) premium at the time of renewal.

With every consecutive claim-free year, this discount grows steadily, rewarding safe driving and responsible car ownership. This discount increases progressively with each claim-free year, reaching a maximum of 50% on your OD premium after five consecutive claim-free years with TATA AIG. To better understand how NCB accumulates, here is a breakdown:

For instance, let us assume your annual premium is ₹10,000, where the Own Damage (OD) premium is ₹6,000 and the remaining ₹4,000 covers third-party liability. If you have maintained a claim-free record for three consecutive years, you become eligible for a 35% NCB discount.

This means you save ₹2,100 on your OD premium (35% of ₹6,000). As a result, your renewal premium reduces to ₹7,900 instead of ₹10,000.

While the No Claim Bonus (NCB)in a car policy is a valuable reward for maintaining a claim-free record, it comes with specific rules. Understanding these ensures you can fully enjoy its benefits without confusion.

Benefits Cap

The NCB percentage increases with each consecutive claim-free year, starting at 20% after the first year and reaching a maximum of 50% after five years. Even if you maintain a spotless record beyond this, the discount will not exceed the 50% cap.

Applicable Only on Own Damage Premium

The NCB applies only to the own damage component of your car policy premium, not the full amount. The third-party liability cover is fixed by law and excluded from NCB calculations. For example, if your total premium is ₹10,000 and your own damage share is ₹6,000, the NCB discount will be applied only to ₹6,000.

Correct Declaration is Crucial

You must declare your NCB details correctly during the renewal of your car insurance policy. Overstating your NCB percentage or providing incorrect details may result in the rejection of claims or the denial of the bonus. Always verify your NCB details with your insurer to avoid complications.

NCB is Non-Transferable to a New Owner

The no claim bonus in car insurance is tied to the policyholder, not the vehicle. If you sell your car, the accumulated NCB cannot be transferred to the new owner. However, you can transfer it to a new vehicle purchased in your name, provided the transfer is completed within a stipulated time.

Lapses Due to Policy Expiry

If your car insurance policy is not renewed within the grace period (usually 90 days), you lose your accumulated NCB. Timely renewal with TATA AIG ensures you continue enjoying your hard-earned savings.

Also Read: How Can You Claim NCB for Your Car Insurance

Filing a Claim During the Policy Year

The most common reason for losing a no claim bonus in car insurance is making a claim. Even a single claim within the policy year disqualifies you from receiving the bonus at the next renewal. For instance, if you file a claim for car damage within the first year, you will not receive the 20% NCB discount when renewing. This rule encourages policyholders to avoid minor claims and save their NCB for larger savings in the future.

Missing Renewal Within the Grace Period

Timely renewal of a car insurance policy is crucial to keep your NCB intact. TATA AIG allows a 90-day grace period after your policy expires. If you miss this window, your accumulated NCB resets to zero, regardless of your past claim-free years. For example, if you had a 50% NCB after five claim-free years but failed to renew in time, the entire bonus will be lost.

Selling Your Car Without Retaining NCB

The no claim bonus in car insurance belongs to the policyholder, and not the vehicle. If you sell your car without requesting an NCB transfer, the accumulated bonus is terminated. To retain it, you must inform your insurer and obtain an NCB transfer certificate. This certificate allows you to apply the bonus to a new vehicle purchased under your name.

Switching Insurers Without Declaring NCB

When changing insurance providers, it is essential to declare your existing no claim bonus in car insurance and provide proof of your claim-free record. Failure to do so may result in the termination of your NCB, as the new insurer may not recognise your previous bonus. Always request an NCB certificate from your current insurer when moving to a new provider to safeguard your benefit.

Also Read: How to Get NCB Certificate

The No Claim Bonus (NCB) Protection Cover in a car policy allows you to retain your NCB benefits even if you make a claim. By paying a small additional premium, you can preserve your accumulated NCB and continue enjoying reduced premiums during renewal, despite filing a claim.

At TATA AIG, the NCB Protector is a popular add-on because it safeguards the savings you earn through claim-free years. The NCB discount increases progressively with each consecutive claim-free year, reaching up to 50% after five years of claim-free service. Such an add-on helps retain those savings, making it a cost-effective choice for the long term.

For instance, with the car insurance policy NCB Protector, you can raise a genuine claim for accidental damage without losing the premium discount you have earned over previous years. This makes it easier to maintain both financial efficiency and complete coverage.

Who Should Opt for NCB Protection Cover?

The NCB protection add-on is valuable for all car owners, but it becomes especially important if:

• You own an expensive four-wheeler, where replacement or repairs could be very costly in the event of theft or damage.
• You live in a risk-prone area where natural calamities like floods, earthquakes, or cyclones, as well as riots, increase the likelihood of claims.
• You have owned your vehicle for more than two years and want to protect your accumulated NCB benefits from being lost.

With the car policy NCB Protection Cover from TATA AIG, you can drive with peace of mind, knowing that your savings are secure even when claims are unavoidable.

The No Claim Bonus (NCB) is a reward in a car insurance policy, but its benefits come with certain conditions. Knowing when it applies and when it does not helps policyholders make the most of this feature.

When NCB is Applicable

• The NCB is offered at the time of car policy renewal, provided no-claims were raised during the previous year.
• It is a progressive discount, starting at 20% after the first claim-free year and rising up to 50% after five consecutive years.
• The no claim bonus in car insurance helps reduce renewal premiums and encourages careful driving and responsible vehicle maintenance.

When NCB Is Not Applicable

• NCB lapses if the car policy is not renewed within the 90-day grace period after expiry.
• It must be selected when buying or renewing the policy and cannot be added midway through the policy term.
• If the insurer detects fraudulent claims or misrepresentation of facts, the NCB benefit will be revoked, and the add-on may be invalidated.

Also Read: How Can You Use NCB of an Old Car to Reduce the Policy Premium of a New Car

You can easily check your No Claim Bonus (NCB) in car insurance with TATA AIG. Log in to the TATA AIG website or mobile app and review your policy details, where the NCB percentage will be displayed.

You can also find it in your previous year’s car policy document or request confirmation from TATA AIG’s customer support team. During car insurance policy renewal, your eligible NCB discount is automatically applied to the Own Damage premium if no-claims were raised.

You can transfer your No Claim Bonus (NCB) when switching to a new car insurance policy with TATA AIG.

• First, request an NCB certificate from your previous insurer.
• Then, share it with us while purchasing the policy.
• The NCB discount will be applied to the Own Damage premium.

It ensures you continue enjoying lower renewal costs for your claim-free driving record.

If you plan to buy a car insurance policy with No Claim Bonus offline, you will require a no-claim bonus certificate issued by your previous insurer to transfer it to the new policy from TATA AIG.

Here is how you can go about it:

• Inform your previous insurer and request a no-claim bonus transfer.
• Submit all the relevant documents regarding your previous vehicle insurance policy and other personal documents required.
• You will receive a no-claim bonus certificate from the previous insurer.
• Present this no-claim bonus certificate to TATA AIG as proof.

TATA AIG will transfer the NCB benefits from your previous car policy to the new one.

Submit the following documents to TATA AIG to get your no-claim bonus transferred to the new car policy:

• A no-claim bonus transfer application form
• Copy of the car insurance policy
• Sales agreement (Form 29 and Form 30)
• Copy of the booking receipt in case of purchase of a new vehicle
• Copy of the old registration certificate or ownership transfer certificate in case of the sale of the old vehicle
• Copy of the delivery note in case of the sale of an old car

The No Claim Bonus is a reward that transforms responsible driving into real savings. By protecting and maintaining your NCB, you ensure that your car insurance policy remains affordable while still offering comprehensive protection.

At TATA AIG, we make insurance-related processes simple and transparent. Whether you want to transfer your bonus, renew a car insurance policy, or even check your car insurance status online, our processes are quick and customer-friendly.

With features like cashless repairs, 24/7 assistance, and high claim settlement ratios, we ensure you enjoy peace of mind along with savings. These benefits make every renewal more rewarding for careful and disciplined drivers.

Buy or renew your TATA AIG car policy today and secure the benefits of No Claim Bonus for long-term savings.