No claim bonus (NCB) is the reward given by the insurer to a policyholder for not making any claim during the policy term. If any claim is made during a policy year, then NCB will not be given in the next year. NCB will be terminated if the policy is not renewed within 90 days from the date of expiry of the existing policy.
- NCB belongs to you, not your car. So, it is offered even if the policyholder changes his vehicle. NCB can be transferred to from old vehicle to a new vehicle that the policyholder purchases.
- NCB is transferable from one vehicle to another as long as the policyholder is the same.
- NCB can be transferred from one insurer to another insurer.
- NCB is given only when the policy is renewed. It cannot be claimed as a right. But it can be earned by maintaining a claim-free record. NCB can be accumulated over the years. The NCB amount ranges from 20% to 50% on the premium.
- NCB is given only to the own damage premium component and not for third party liability premium.
- NCB can be protected by paying a small fee. The full amount will remain even if a claim is made.
- Sunset clause. The maximum NCB is 50% and it will not increase even if no claim is made in future years once you have accumulated 50%.