What is No Claim Bonus (NCB) in Car Insurance?

NCB is a benefit that an individual gets from their insurance provider if they don't make any claims in a policy year. This benefit keeps increasing with each claim-free year, thus recognising the individual’s safe and responsible driving.

NCB can range from 20-50% depending on the insured’s own damage claim history. This benefit can help an individual save a lot of money on their premium. So, if they are a safe and careful driver, they can make the most of their NCB.

After the first claim-free policy year, an individual’s insurer will provide a 20% benefit on their own damage premium for the second year. The NCB is accumulated for up to five consecutive years.

Shriram General Insurance NCB Functionality

By offering NCB in car insurance, insurers are providing an incentive for policy holders to drive safely, as it motivates them not to make claims unless it is huge. This serves to discourage policy holders from making claims on trivial issues, as they will think twice before doing so.

Shriram General Insurance NCB Slab

As you can see from the table below, NCB slabs are based on the number of claim-free years:

Claim-free renewals (years)	Discount on Premium
First Year Claim-free Renewal	20%
Second Consecutive Claim-free Renewal	25%
Third Consecutive Claim-free Renewal	35%
Fourth Consecutive Claim-free Renewal	45%
Fifth Consecutive Claim-free Renewal	50%

Shriram General Insurance NCB Benefit

It is possible to transfer a No Claim Bonus between vehicles under the same owner.

No Claim Bonus Feature Cancellation

The No Claim Bonus feature will no longer be valid if an own damage claim is made or the policy is not renewed within 90 days of its expiration.

No Claim Bonus Terms and Conditions

If an insured is trading the old car for a new one, they should make sure to transfer the No Claim Bonus to the new vehicle. The insurance company will issue a certificate as part of the transfer process and they may be eligible for a reduced premium, although this is up to the discretion of the insurance company.

No Claim Bonus is only available on a comprehensive policy or the own damage cover, not on third-party insurance.

What Happens When You Switch Insurance Providers?

If an individual switch to a different insurance provider, they will usually allow them to keep their No Claim Bonus. This bonus is easy to understand and calculate, so it's worth considering if they want to benefit from it.

However, make sure that an individual doesn’t make any claims for minor damage during the year; if they do, they will lose their bonus. Therefore, it's a good idea to choose NCB as an add-on, as this will maintain the bonus even if they make a claim.

Things to Know About Incorrect NCB

If you are switching the car insurance policy, it is important to be aware of the consequences of incorrectly declaring the No Claims Bonus (NCB). If they fail to declare this information or declare it incorrectly, an individual’s insurance provider could reject any car insurance claims they make and they will be left without any cover.

Therefore, when switching insurance policies, make sure to accurately provide any information regarding claims that have been made with the previous insurer in the same year. Insurance companies are able to source this data easily. Hiding such critical information will affect the insured’s future claims.

Shriram General Insurance Final Note

No matter how cautious driver an individual may be, one cannot always protect themselves from the actions of other drivers. NCB Protection Cover helps them benefit from their own careful driving, even if someone else is at fault. Although being vigilant behind the wheel comes with great benefits. The NCB Protection add-on is the best way to ensure an insured have peace of mind while driving, no matter what happens. Think ahead and protect your NCB securely today.

Key Highlights

• NCB is a benefit that an individual gets from their insurance provider if they don't make any claims in a policy year.
• By offering NCB in car insurance, insurers are providing an incentive for policy holders to drive safely, as it motivates them to not make any small own damage claims.
• If an insured is trading the old car for a new one, they should make sure to transfer the No Claim Bonus to the new vehicle. The insurance company will issue a certificate as part of the transfer process and they may be eligible for a reduced premium
• If an individual is a safe and careful driver, they can make the most of your NCB and save on their premiums.

FAQ’s

How No Claim Bonus works?

An insurance company provides an insured with No Claim Bonus (NCB) for not applying any claim requests during a policy year. The NCB benefit, which can range from 20-50%, is applied to the renewal premium.

What is the maximum NCB on car insurance?

If you have not filed any claims for five consecutive years, the NCB for car insurance can go up to 50%, starting at 20% in the first year.

Does No Claim Bonus expire?

You must remember to renew your car insurance policy within 90 days of its expiry or else the No Claim Bonus of your policy will also be forfeited.

How long No Claim Bonus is valid?

An insured has a timeframe of up to three years to transfer the NCB certificate to the new vehicle’s insurance policy. To do this, simply provide the NCB certificate to the insurer of the new car.