Everything You Should Know About No Claim Benefits (NCB)

Posted by pritisingh on June 20th, 2019

Having car insurance has become important in India where many drivers out there seldom care for the safety of other drivers and just drive their vehicles irresponsibly, causing damage to others. When your car is covered by online car insurance, it helps take off the financial load in case of mishap or damage to the car.

The basics of NCB

Good driving behavior is rewarded by insurance companies. With responsible and careful driving, the chances of accidents go down, and with it, the number of claims also go down. In order to incentivize this good behavior, insurance providers use the concept of No Claims Bonus or NCB

Here are some facts about No Claim Bonus to keep in mind:

1. Amount of no claim bonus:
A car insurance calculator will show that the amount of NCB percentage will depend on the
number of claims-free years you have racked up. This starts from year 2 of the insurance
NCB discount starts from 20% and reaches its maximum at 50% on the premium to be paid
typically by the 5 th year.

2. NCB is attached to the policyholder rather than the car:
If you buy car insurance and want to switch over to a new vehicle after 2-3 years, the
accumulated NCB will also be carried forward to the new car. So, the NCB benefit is associated
with the policyholder and not the car.

3. Avoid claiming small amounts:
If the amount of claim is less than the NCB value then it is wise to not claim for the same. For
e.g, if your claim to repair a side mirror is Rs 1000 and you are eligible for Rs. 2500 NCB then
the wise thing would be to bear the Rs. 1000 and save the Rs. 2500 NCB for bigger claims.

When you renew online car insurance, these details on NCB can land you a great deal in the premium payable.

It is also advisable to purchase car insurance policies from reputed insurance companies like Bharti AXA

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