No Claim bonus is a reward in the form of a discount offered while you pay the renewal premium on your Motor Insurance Policy. No Claim Bonus is 20% for first claim free year and the same keeps on increasing by 5% for every claim free year till it reaches 50%. Afterall, why should'nt you be rewarded for being a good driver.
No Claim Bonus Table
| No-claim Bonus (On Own damages) | |
| Year | Discount (%) |
| 2 | 20 |
| 3 | 25 |
| 4 | 35 |
| 5 | 45 |
| 6 | 50 |
* Might vary slightly with Insurers
What we all know about No Claim Bonus (NCB)
Once you take any claim, No Claim Bonus (NCB) becomes NIL
If policy is renewed after 90 days from the date of expiry of the policy, again NCB becomes NIL
No Claim Bonus can be claimed even if we change Insurance Companies.
What we dont know about No Claim Bonus (NCB)
No Claim Bonus (NCB) goes with the customer and not the vehicle. The same can be transferred to the new vehicle in case of substitution of vehicle of the same class.
The biggest mistake we do when we sell our car, we don't retain the NCB.
NCB can be utilized within 3 years (where the existing vehicle is sold and a new vehicle is purchased)
How to Claim No Claim Bonus (NCB) on New Car
- When we sell our Car, we should ensure that car is transferred in the name of buyer and Registration Certificate (RC) is duly updated or Endorsed.
- Forward a copy of the delivery note to your insurance company and ask for the NCB certificate or holding letter.
- Once you get that letter, its valid for 3 years and if you buy Car within that Period you will get the No Claim Bonus (NCB) benefit according to slab.
- However NCB on new vehicle is applicable on the same class of vehicle i.e. 2 wheeler, Passenger Car, Light Motor Vehicle etc.
- If you don't want to sell your car, then you can cancel the Insurance and still ask for the NCB Certificate from your Insurance company. But why anyone would cancel the Insurance, The answer is simple "If the New vehicle is of higher value than probably you will save more on insurance even if you have to pay full Premium of your old vehicle"
- Another way for doing the same is by getting the Vehicle transferred in the name of someone in family.
