No claim bonus (NCB) is a discount, given by an insurer to a policyholder for making no claims during the policy term.
NCB can be accumulated over the years and the discount ranges from 20% to 50% on the own damage premium.
This is simply a general insurance company's way to reward a customer's good driving behavior.
Say at the end of 12 months the insured did not claim any own damage in this case the insurance company provides them a discount by giving NCB based discounts in their premium.
- Discount earned by insured for a claim free completed year.
- In case of Own Damage claim, No Claim Bonus gets back to 0%
- NCB can be transferred from one insurer to other
- If the vehicle is sold during the policy period, insurer issue an NCB reserving certificate, the validity of which is 3 years from the date of sale of the vehicle
Below mentioned is the NCB Slab
|NCB Slab |||
|All Types of Vehicle |
(No Claim made or Pending during the Preceding)
|Percentage of Discount on OD Premium |
|Full year of Insurance ||20% |
|2 consecutive years of Insurance ||25% |
|3 consecutive years of Insurance ||35% |
|4 consecutive years of Insurance ||45% |
|5 & more consecutive years of Insurance ||50% |