No Claim Bonus -Frequently Asked Questions

Q. What is NCB in Car Insurance?
A. NCB stands for ‘No Claim Bonus’. It is actually a kind of reward that the car insurance providers provide to their customers when they do not file any claim in a policy year. In this reward, the insured person gets a discount on their premium when they renew their insurance in the next policy year.

Q. When is NCB Terminated?
A. As long as you do not claim, you will continue to get the benefit of NCB protection. But if you have to claim for any reason during a policy year then you will not get the benefit of NCB in the next policy year.

Q. How to get NCB Certificate?
A. At the time of buying an insurance policy, the policyholder is provided with an NCB certificate and it now depends on the policyholder whether he makes any claims or not in the policy year. If he claims, then he will not be entitled to the NCB benefit for the next year but in case he doesn't claim for the entire year, he will be eligible for the NCB benefit.

Q. What is Previous NCB in Insurance?
A. If you buy an old car from a dealer or any third-party and if the car is eligible for NCB then you can apply for a no claim bonus transfer. In this case, all that you have to do is, write to your insurance provider informing them about the sale of your old car and request them to transfer your NCB to the new car.

Q. Can I have a No Claim Bonus for more than 1 car?
A. Your no claims bonus only applies to one car.

Q. Can I transfer No Claim Bonus from one insurer to another?
A. If you’re changing Insurance companies, you can transfer your no claim bonus from one insurance provider to another. If you’re transferring to a new insurer at the time of your policy renewal, you have to show your last year’s policy document / renewal notice where your NCB is mentioned.

Q. What is the maximum no claim bonus applicable on car insurance?
A. The maximum NCB applicable on car insurance is up to 50%. In the first consecutive year of no claims, your NCB starts at 20% and eventually goes up to 50% in case you’ve had no claims in five consecutive years.

Q. Do insurance companies check the no claim bonus & verify the claim history?
A. Yes, all insurance companies do check if the no claim bonus and other details declared while buying your car insurance company was right or not.

Q. Do you lose no claim bonus if you stop driving?
A. No, you don’t lose your no claim bonus if you stop driving. You only lose your NCB if you make a claim in the policy year, or don’t renew your car insurance policy before its expiry date.

Q. How long is NCB valid for?
A. Your NCB is valid until you make your next claim.

Q. Do you lose NCB if you cancel insurance?
A. Yes, you will lose out on your NCB if you cancel your insurance completely before it expires. However, if you’re only looking to change your insurer, it’s better to declare your NCB or get your NCB certificate issued from your existing insurer to your new insurer and continue to benefit from your existing NCB instead of cancelling it altogether.