A no-claim bonus is a reward your car insurance online or offline provider offers on your premium. This is the most significant reward you can get for your premium, and it reduces its cost significantly.
You may be eligible for a no-claim bonus* (NCB) if you do not claim your car insurance for more than a year. Because the no-claim bonus* is cumulative, you may receive a higher percentage of the rewards for each year you do not file an insurance claim. This means that your car insurance premiums can be lower each year. As a result, it is ideal not to file an insurance claim for minor car damage.
Claim-free years earn the insured a Claim Bonus. If you’re buying auto insurance for a new car or renewing it, a No Claim Bonus (NCB)* can lower your premium.
Why do car insurance companies offer the No-Claim Bonus*?
You drive safely for a year without filing any car insurance claims. Your plan is expiring, so renew it. Your insurance provider appreciates your cautious driving and not submitting a claim. Thus, the insurer rewards you during your renewal. NCB* is a car insurance incentive. Carrying out a car insurance policy comparison can help understand the rewards better and the offerings that the policy may offer.
The main No Claim Bonus* benefits are:
- NCB* helps you get a policy renewal reward. Thus, possessing an NCB may lower your premium.
- Transferable No Claim Bonus* belongs to the four-wheeler owner. Thus, you can transfer the No Claim Bonus* to a new four-wheeler if you sell your previous one. If you switch insurers, NCB* follows you.
Advice: Checking the car insurance premium calculator can be convenient to plan your finances ahead depending upon the requirements you seek from the company.
How does no-claim bonus* work?
No Claim Bonus* works like other bonuses. It motivates and rewards wise work. The NCB* increases with compliance. As a result, if you do not file a claim in the next five years and renew your car insurance on time, you may be eligible for a significant reward on insurance renewal for years. Your first insurance year NCB* may be 10% if you don’t make any claims. Thus, your second year of no claims can earn you more. Your fifth claim-free year may mean a 50% bonus.
Thus, insurance companies encourage you to drive safely while discouraging you from filing minor claims by including the No Claim Bonus* in your car insurance policy. In this manner, a car insurance policyholder can reconsider filing claims for minor issues.
Things to consider when getting a no-claim bonus* in india –
The following are the essential facts about the No Claim Bonus* in India:
- NCB* can be denied if the policy is not renewed on time.
- The no claim bonus* for business vehicles may vary as per the insurance company, so check the policy for details.
- The no claim bonus can reset to zero if you file a claim even after multiple claim-free years without the NCB* add-on protection.
- NCB* proof – The NCB certificate issued by the insurance company can be used as NCB proof.
‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply
*Standard T&C Apply