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05 Aug 2025
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No Claim Bonus (NCB) is a discount offered by insurers for not filing any claims during the policy year. It rewards safe and responsible driving by reducing your car insurance premium at renewal. Over time, NCB can help you save significantly while maintaining uninterrupted coverage on your policy.
If you don’t raise a claim during your car insurance policy term, your insurer rewards you with a No Claim Bonus. This bonus starts at 20% and can go up to 50% over consecutive claim-free years. The discount is applicable only on the own damage component of your policy and not on the third-party cover.
NCB directly impacts your insurance expenses and promotes risk-free behaviour. Over time, the accumulated bonus can lead to substantial savings, especially for higher-value vehicles. It’s also transferable between insurers, adding flexibility when switching. Bajaj Allianz General Insurance Company honour NCB with ease through their wide service network and digital renewals.
Also Read: How to Calculate No Claim Bonus for Car Insurance?
NCB directly reduces the own damage portion of your insurance premium. For example, if your car’s own damage premium is ₹10,000 and you have a 20% NCB, you’ll pay ₹8,000. Over time, this discount increases with each claim-free year, reaching up to 50%, making your policy significantly more affordable. It’s a long-term reward that helps you save money while staying insured.
NCB is especially useful for comprehensive policies with higher OD premiums. Insurance providers such as Bajaj Allianz General Insurance Company ensure your NCB is accurately reflected in renewal notices and continue to offer the benefit as long as no claims are filed.
Claim-Free Years | NCB % Benefit |
1 year | 20% |
2 years | 25% |
3 years | 35% |
4 years | 45% |
5+ years | 50% |
When switching to a new car or insurer, request an NCB certificate from your previous insurer. Submit this certificate during your new policy purchase. The new insurer, such as Bajaj Allianz General Insurance Company, will honour the discount on the own damage premium of your new car insurance plan. Ensure there’s no break in policy to retain eligibility.
Making a claim resets your NCB to zero for the next policy term. Even small claims can disqualify you from getting the bonus. If you have frequent repairs, weigh the claim amount against the potential loss of NCB before filing.
You can opt for an NCB Protection Add-on. This allows you to retain your bonus even after making one or two claims during the policy year, depending on your insurer’s terms.
NCB is linked to the policyholder, not the car. If you switch insurers or buy a new vehicle, you can transfer your accumulated bonus. Obtain an NCB certificate from your old insurer and present it to your new insurer. Most reputed insurers, including Bajaj Allianz General Insurance Company, accept the transfer without complications. This makes your loyalty and claim-free history truly valuable.
An NCB Protection Add-on helps you retain your earned bonus even if you make a claim. It’s ideal for preserving long-term savings and is available from most top insurers during policy purchase or renewal.
Available for comprehensive car insurance plans, this add-on ensures that your NCB remains intact despite limited claims. It’s especially beneficial if you’ve built up a 35%–50 % bonus over the years.
NCB applies only to own damage components of motor insurance policies. It is not applicable to third-party-only plans. Choose a comprehensive policy to benefit from NCB-based savings.
Also Read: Break-in Period in Car Insurance: All You Need To Know
To retain your accumulated NCB even after a claim, especially if your discount is above 20%, which helps you save long-term on future premiums.
No Claim Bonus is one of the most valuable benefits in car insurance. It rewards safe driving and helps you reduce costs year after year. With options like NCB Protection Add-ons and easy transfer processes, insurers like Bajaj Allianz General Insurance Company make it even easier to protect your bonus. Add to that their 7,200+ cashless garages, and you get a seamless, rewarding insurance experience.
Yes, NCB is transferable between insurers or when you buy a new car. Just get an NCB certificate from your current insurer.
Your NCB resets to zero if you make a claim during the policy period, unless you have an NCB Protection Add-on.
No, NCB is only available for the own damage component of comprehensive or standalone OD car insurance policies.
Contact your insurer and request the certificate after policy expiry or during transfer. It reflects your claim-free history.
It’s an add-on that allows you to retain your NCB even after making one or more claims. Ideal for long-term savings.
*Standard T&C apply
**Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
***Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
****Disclaimer: Vehicle specifications, features, and pricing may vary, and it is essential for readers to verify the latest information from authorised dealerships, manufacturers, or reliable sources before making any purchasing decisions.
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