How is no claims bonus calculated

The amount of discount is calculated by reference to the number of years that you have driven a vehicle without making a claim on your car insurance. The idea behind this is to reward consistently safe driving. Your NCB can usually be transferred between insurers. However, you will usually need to provide proof of your NCB to your new insurance provider. You can request this proof from your previous insurer. Car Insurance. Bike Insurance. Commercial Vehicle Insurance. Long Term Two wheeler package policy.

Liability Only Policy. Motor Third Party Liability. International Travel Insurance. Domestic Travel Insurance. Student Travel Insurance. Senior Citizen Travel Insurance. Business Travel Insurance. Accident Insurance. Home Insurance. Rural Insurance. Private Client Group Insurance.

Small Business Insurance. Marine Cargo Insurance. Similarly, a No Claims Bonus is a discount that insurers provide to you on your Own Damages premium after your first claim-free year. An NCB is an incentive for comprehensive car insurance policy holders to not file minor claims and instead reap bigger financial rewards on their subsequent car insurance renewal. With insurers entering the digital space, you can now enjoy online car insurance renewals and easy NCB calculation as well.

However, it is important to note that if you make a claim, the bonus discount percentage resets to zero, henceforth. Firstly, you enjoy a lower premium amount, making it easier to avail comprehensive insurance protection year-on-year. Secondly, it encourages and rewards good driving behaviour. And thirdly, NCB is not associated with the car, but with the policyholder.

Which means that even if you buy a new car, you are eligible to enjoy NCB benefits. The benefits are associated with you and you can carry them over. To protect your NCB, you can also avail an NCB protection cover that does not reset your discount percentage to zero, in case you make a claim upto a pre-defined limit. Say you take an NCB protection cover worth Rs for one claim in a year. The NCB serves drivers by encouraging them to drive safer. Also, with the NCB protection cover, all is not lost in case an accident does happen.

NCB is ideal for car owners of more than two years, and for someone whose car is vulnerable to damage with a claim likely to be made during the year. Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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New Business Strain New business strain is the strain on the business created due to inadequate premium amounts in initial years. Nominee A person who receives the benefit in case of death of the insured person is a nominee. Related Definitions. Browse Companies:. Mail this Definition. My Saved Definitions Sign in Sign up. Find this comment offensive? This will alert our moderators to take action Name Reason for reporting: Foul language Slanderous Inciting hatred against a certain community Others.

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