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Yogi Zone

Useful articles for your finance management by our team of experts

Top Five Questions on NCB in Car Insurance

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ncb

No Claim Bonus or NCB is one aspect which everyone with a car insurance policy must know about. However, not many have the knowledge of it. Let’s answer top 5 questions on NCB which gives you a fair idea on what it is and how it will benefit you.

1) What is it?

NCB is a bonus or reward given to the driver/owner of a vehicle for not having made any claims in the previous year. It is not a cash reward, though. The insurance company gives a deduction in the insurance premium payable for the next year.

2) What is the Minimum and Maximum NCB?

The minimum NCB applicable is 20% in the 2nd year and goes up to a maximum of 50% in the 6th year’s premium. Here are the detailed discounts:

YearNCB
1Nil
220%
325%
435%
545%
650%

3) Is it transferable?

Yes, NCB is transferable from old vehicle to new vehicle. Ownership of insurance policy is the key here. NCB is never for the vehicle, but for the owner of the vehicle.

4) Can it get cancelled under any circumstances?

Yes, it can get cancelled or forfeited in two situations:

a)      If there is a claim made in the previous year.

b)      If the policy is not renewed within 90 days of expiry.

5) Can NCB apply for two cars simultaneously?

No, NCB is applicable only on one car at a time. If you need it on another car, you have to get it transferred. Having NCB on the car with higher insurance premium will help you save more.

Let me now if you have unique requirement which is not covered in this article. Also, leave your valuable comments/suggestions on this piece of content.

  • Praveen P Poddar

    Kindly note – the slabs mentioned under point no 2 relates to individual income tax slabs (Article – Top Five Questions on NCB in Car Insurance). Kindly update the same with NCB Discount Slabs. Thanks

  • hemender

    Nice post on no claim bonus (ncb). So many points are covered in this post. It helps the policy holder to save a lot of bucks on his car insurance policy. I too had save 3 times on my HDFC ERGO car insurance policy by using no claim bonus.

  • hemender

    Nice post on no claim bonus (ncb). So many points are covered in this post. It helps the policy holder to save a lot of bucks on his car insurance policy. I too had save 3 times on my HDFC ERGO car insurance policy by using no claim bonus.

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