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No Claim Bonus (NCB) in Car Insurance Decoded
Jul 21, 2020

No Claim Bonus (NCB) in Car Insurance

In this era of rising inflation, your Car Insurance can provide some respite in the form of a No Claim Bonus (NCB). For those who are not familiar with this term, it's a reward given by your Insurance provider for having a clean driving record. Many policyholders are aware of this term, but aren't cognisant of the nuances, thereby leading to confusion during their car insurance renewal. Following are the essentials of NCB that you should know thoroughly.

NCB Is Available Only On Renewal of Policy

As the name denotes, NCB is a reward offered by your Car Insurance provider for not making any claims in the preceding year. The range for the same is anywhere from 20-50 percent of the payable premium. If you're purchasing your Car Insurance for the first time, then NCB won't be applicable due to the absence of previous records.

Transferring NCB

If you want to transfer your NCB from a previous insurance policy for a car that you sold to a new car, you need to furnish an NCB reservation letter from the insurance company. The NCB certificate is valid for 3 years.

By choosing a trustworthy Car Insurance provider like Bajaj Allianz General Insurance, you can avail this facility without any hassles.

Also, it's important to consider that NCB is for you and not your car. Yes, you read that right! This means that you don't have to worry while purchasing a new car as your NCB is transferrable to your new vehicle.

You don't have to think about changing your insurer either due to this convenience. NCB can also be claimed by the legal heir if he/she inherits the car upon the policyholder's death.

NO NCB for Third-Party Coverage

It's important to know that this bonus can be availed only on your own damage premium and not on the third-party liability component of your premium. Your third-party liability premium is fixed according to your vehicle and will constitute 10-15% of your total Car Insurance premium. This implies that your NCB is not applicable on third-party insurance for cars.

Smaller Claims Could Lead to a Bigger Loss

Making claims for minor damages can have a bearing on your NCB during hassle-free car insurance renewal online . Hence, it's recommended that you carry out a cost-benefit analysis before filing any claims. Even the smallest of claims can effectively void your NCB. Therefore, it's always better to take a prudent approach instead of being 'Penny wise pound foolish.'

Protecting Your NCB

As discussed before, making claims can negatively impact your NCB. Nonetheless, there are ways through which you can file for claims and also subsequently be eligible for receiving NCB. Many would be apprehensive about choosing this cover and that's quite understandable.

However, your NCB amount will be much greater than your NCB protection cover, which renders it a lucrative prospect.

Let's take a look at your Car Insurance Claim Process in regards to your NCB.

  1. Register your claim online.
  2.     Upload the requested documents.
  3.     Wait for your request to be processed.

If you're looking for an innovative Car Insurance policy, it is wise to compare comprehensive plans  and optimize them further to achieve the lowest car insurance rates .

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