No Claim Bonus (NCB) is one of the best features your car insurance provider can facilitate you with. It gets enhanced at the end of every non-claim year and can reach up to a maximum of 50%. It’s a reward granted by your car insurance company for maintaining no claims history. Almost all motor insurance firms like Future Generali India Insurance, Bharti Axa car insurance, Royal Sundaram, and others facilitate you with NCB. After buying your car policy from any competitive online comparison sites like PolicyX you can leverage your NCB.
NCB Percentage
| Sno. | Percentage of increase in NCB |
| End of 1st Year | 20% |
| End of 2nd Year | 25% |
| End of 3rd Year | 35% |
| End of 4th Year | 45% |
| End of 5th Year | 50% |
How Small Claims Can Drop Your NCB?
After buying a car insurance, vehicle owners get allured to raise even a trivial claim. Most of the people are not aware of the benefits they can get by avoiding little claims. You may end up getting the best discount on your premium renewal only if you avoid your small claims. Here the small claim is indicating the amount that is less than a sum of Rs. 10,000 to Rs. 15,000. While raising such claims after all the deductions you may just get the settlement of Rs 5,000 to Rs.7,500 or less. However, if you avoid such a claim than the discount you get on your policy renewal can be much more. At the same time, your claim history is also not affected which may succumb you additional benefits as well. A car having IDV of Rs. 6,00,000 at the end of the 2nd year can offer you NCB of 25% for own damage.
This discount will be only applicable if you haven’t taken any claim within two years. So in this case, if your premium amount is Rs.20,000 than you just need to pay a sum of Rs. 15,000. This discount will increase every year and if you don’t take any claim for continuous years than you can even get a discount of 50%. If before the renewal of your premium you take the claims than you may not get the benefit of NCB. So in the above case, if you have taken a small claim of Rs. 8,000 then you may get the settlement of just Rs.3,000 to Rs. 4,000 after the deduction. NCB that you will get will be reduced in such case to just 10% or as per he motor insurance firm. You can always check the difference in the discount and claim and decide accordingly. It’s anytime better to avail NCB than to take small claims that you can easily afford. Usually, NCB can grant you much better benefits than petty claims.
More About Your NCB
Besides small claims, your NCB can also expire if you don’t renew your car policy on time. Your car policy should be renewed within a maximum of 90 days gap after the policy term to enjoy benefits of NCB. You must also know that you can also transfer your NCB from one insurance player to another without any deduction. However, there can be the risk of loosing NCB if your vehicle is involved in an accident or theft till your case is settled. NCB is a very beneficial feature facilitated by your car insurance. You must leverage it judicially to utilize all the discounts offered by your insurance firm. As soon as you buy car insurance you must try to avail NCB completely i.e. 50%.
Car Insurance premium is one of the mandatory document that you must have. You have to renew your car insurance periodically, why not aim to get the best premium amount. While buying a car policy, vehicle owner tries to get the best possible deal, leveraging NCB can act as an icing on the cake. Try avoiding small little claims so that you can get the best value for your NCB. Some motor car insurance firms may offer you a better premium because of your claim history as well. So your trivial claims can be more of a loss than any good. Furthermore, before taking a claim of little less value, you can always analyze the NCB loss you have to incur while renewing your car insurance and decide accordingly. Anyone will select to renew their car insurance with best NCB rather than taking a risk in raising trivial claims. The best car insurance is the one that is chosen with thorough analysis providing maximum benefits.
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