The Importance of No Claim Bonus in Car Insurance

Posted on April 24,2023


With growing expenses each year, Samar was looking for different ways to manage the budget. He asked his personal finance advisor, for help. That is when Samar made the amazing discovery that he could get a No Claim Bonus (NCB) on the four-wheeler insurance. Fortunately, Samar had not filed any claims for the past three years, it helped him save 35% on the insurance premium.

 The timely renewal of Samar’s car insurance policy had paid off! Samar called his insurance agent immediately to calculate the NCB so that he could enjoy great savings on the upcoming renewal.

 Like Samar, you can also get benefits from NCB. This blog will help you understand the importance and benefits of NCB. Read on to learn more.

 In India, having four-wheeler insurance is mandatory. It helps car owners avoid any huge expenses and losses incurred by the vehicle in an accident or if it is stolen. When an individual is purchasing insurance for their car, it’s essential to understand the importance of a No Claim Bonus (NCB).

No Claim Bonus is provided to any policy holder who has not filed for any insurance claim during the term of the policy. Shriram Car Insurance provides NCB of up to 50% off on the premium. It makes buying and renewing four-wheeler insurance affordable and easy.

Benefits of No Claim Bonus

Here are the top three advantages of No Claim Bonus.

Reduction in Premium:

 The first thing car owners look at when renewing a policy is the premium they must pay. No Claim Bonus comes as a relief for policy holders at the time of renewal. Up to 5 years, No Claim Bonus increases with every claim-free year, then paying the premium is much easier.

Higher Savings:

There are many car owners who might miss out on savings if they are unaware of No Claim Bonus in four-wheeler insurance.  No Claim Bonus is applicable only if the insurance is renewed on or before time. This is also a form of savings in the long run.


One can transfer the No Claim Bonus to their new four-wheeler easily. Although, Policy holders must note that when their four-wheeler is sold, No Claim Bonus cannot be transferred to the new car owner.

To transfer the No Claim Bonus, policy holder must obtain a No Claim Bonus Transfer certificate. The documents required vary from one insurance provider to the another.  No Claim Bonus certificate or reserving letter remains valid for up to 3 years.

No Claim Bonus for Claim Free Years

No. of Claim-free Years

Reduction in Insurance Premium

After the first claim-free year


After two consecutive claim-free years


After three consecutive claim-free years


After four consecutive claim-free years


After five consecutive claim-free years



The No Claim Bonus will help drivers and car owners who are cautious on the road. In Shriram General Insurance, the insurance holder can get up to 50% NCB for each claim free year. 

Shriram General Insurance gives you the peace of mind to drive your dream car. With a claim notification service that works round the clock, our representatives can help you right away. The insured will get a quick answer to any questions they have. Hence, go online right away to buy or renew Shriram Car Insurance

Key Highlights

  • No Claim Bonus (NCB) is provided when policy holders do not file any claims during the policy term.
  • Up to 5 years, No Claim Bonus increases with every consecutive claim-free year.
  • Policy holders may get up to 50% off on the premium with No Claim Bonus.
  • Once a claim is made, a No Claim Bonus becomes invalid.
  • To transfer the No Claim Bonus, policy holder must obtain a No Claim Bonus Transfer certificate.


What is the No Claim Bonus (NCB) percentage for claim free years?

Policy holders can get between 20 and 50% off on the premium with a No Claim Bonus.

What happens when car owners do not use the No Claim Bonus?

No Claim Bonus certificate or reserving letter must be used within 3 years. If not, it becomes invalid.

Is No Claim Bonus applied to the full premium of a comprehensive vehicle insurance plan?

NCB is applied only to the own damage component of a comprehensive vehicle insurance plan.

Will No Claim Bonus remain active if the four-wheeler insurance is not renewed?

No, it will become invalid if the four-wheeler insurance policy is not renewed within 90 days of expiration.


Make your ride reliable, Insure it now! with Shriram General Insurance

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