🔍 Introduction: What is NCB in Insurance?
When you're renewing your car, bike, or health insurance, you may have seen a line item called NCB or No Claim Bonus. But what exactly is NCB in insurance, and how can it help reduce your premium?
NCB is a discount offered by insurers to reward you for not making any claims in a policy year. It encourages safe driving, healthy habits, and responsible insurance usage. The longer you go without claiming, the higher your NCB—and the more you save.
This in-depth guide will cover:
- The full meaning of NCB in insurance
- How it works in car, bike, health, and commercial insurance
- How to calculate and transfer NCB
- Ways to protect your NCB even after a claim
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| What is NCB in Insurance? No Claim Bonus Explained |
🚗 What is No Claim Bonus in Car Insurance?
No Claim Bonus (NCB) in car insurance is a discount on your renewal premium if you haven’t made any claims during the previous policy period. The discount is applied only to the own-damage (OD) premium, not the third-party liability portion.
📊 NCB Slab for Car Insurance:
| Claim-Free Years | NCB Discount |
|---|---|
| 1 year | 20% |
| 2 consecutive years | 25% |
| 3 consecutive years | 35% |
| 4 consecutive years | 45% |
| 5+ consecutive years | 50% (max) |
Pro Tip: Even a single claim resets your NCB to zero unless you have an NCB protection add-on.
🏍️ NCB in Two-Wheeler Insurance
NCB for bike insurance works the same way as car insurance. Every claim-free year builds your NCB, which reduces your premium at the time of renewal.
✅ Key Points:
- Max discount: 50% after 5 years
- Applicable to the own damage premium
- Transferable to new insurer or bike
🏥 NCB in Health Insurance: How It Works
Yes, NCB also applies to health insurance—but it works a bit differently than motor insurance.
Instead of a discount, you often receive an increase in your sum insured if you don’t make any claims.
📈 Example:
If your health policy has a ₹5 lakh cover:
- After 1 claim-free year → ₹5.5 lakh cover
- After 2 years → ₹6 lakh or more
Some insurers offer up to 100% to 150% increase over a few years.
✅ Key Benefits:
- Helps beat medical inflation
- Can provide up to double coverage without paying more
- Available for individual and family floater health plans
Note: Some insurers offer an NCB reward as a premium discount instead of increased coverage. Always check your policy terms.
🚚 NCB in Commercial Vehicle Insurance
Businesses that insure taxis, delivery vans, or trucks also enjoy NCB benefits for maintaining a claim-free record. Just like personal vehicles:
- NCB starts at 20% and grows to 50%
- It lowers the own-damage premium
- You can transfer the NCB to new commercial vehicles
🔁 How to Transfer NCB to a New Vehicle or Insurer
One of the most valuable features of NCB is that it is linked to the policyholder, not the vehicle. You can transfer it:
- When buying a new vehicle
- When switching to a different insurer
- Even if you sell your old car
📋 Steps to Transfer NCB:
- Request an NCB certificate from your current insurer
- Share the certificate with your new insurer
- NCB gets applied during the next renewal
Make sure to renew your policy within 90 days of expiry to avoid losing your NCB.
⚠️ What Happens to NCB After a Claim?
If you file even one claim:
- Your NCB gets reset to 0%
- You’ll lose the accumulated discount or bonus
🛡️ NCB Protection Add-On:
To avoid this, insurers offer an NCB Protector add-on. It allows you to retain your NCB even after one or two minor claims.
🧮 Use an NCB Calculator Before You Renew
Most insurers and aggregators now offer free online NCB calculators. These help you:
- Estimate your NCB-based premium discount
- Compare plans with and without NCB protection
- Plan ahead for renewals or switching insurers
Search for: "NCB calculator car insurance India" or check directly on insurer websites like ICICI Lombard, HDFC Ergo, Acko, or Policybazaar.
📌 Top Benefits of No Claim Bonus (NCB)
- 💸 Saves money on premium renewals
- 🚘 Reward for responsible driving or maintaining good health
- 🔁 Transferable across insurers and vehicles
- ⏱️ Builds over time—up to 50% or more
- 🛡️ Protectable with add-ons
❓ Frequently Asked Questions (FAQs)
✅ Is NCB applicable to third-party insurance?
No, NCB applies only to the own-damage component, not third-party liability insurance.
✅ Can NCB be transferred between vehicle types?
No, car insurance NCB cannot be used for bike insurance and vice versa.
✅ How long is NCB valid after policy expiry?
Up to 90 days. If you don’t renew within this grace period, you lose your NCB.
✅ Does health insurance NCB reset after a claim?
Yes—unless you have a super top-up or NCB restoration feature.
📣 Final Thoughts: Why NCB Matters
Whether you drive a car, ride a bike, or protect your family with health insurance, your No Claim Bonus is your reward for being claim-free.
With up to 50% discount on premiums or extra coverage in health insurance, it’s one of the most valuable benefits you can accumulate as a policyholder.
Always check your NCB before renewing. Protect it. Transfer it. And let it work for you.
📌 Disclaimer
The information provided in this blog post is for general informational purposes only and does not constitute professional insurance advice. While we strive to keep the content accurate and up to date, we recommend consulting with your insurance provider or a licensed insurance advisor for personalized guidance. Policies, terms, and No Claim Bonus (NCB) rules may vary by insurer and location. We are not responsible for any loss, damage, or inconvenience caused as a result of reliance on the information presented here.
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