What is No Claim Bonus (NCB)

Like mentioned earlier, the NCB is directly dependent on your claim history. So in simple terms, if you go claim-free for the duration of the policy period, you would be entitled to the NCB as per your eligible amount. As per the table, the NCB amount will go on increasing up to a period of five consecutive claim-free years. It is quite understandable that it tempting to file a claim for minor reasons. However, it is crucial that you calculate the long-term ramifications. For instance, if you are registering a claim for a meager amount and losing out on your NCB which is far greater, it does not make sense to do so. If you foresee yourself in such a dilemma, you can avail an add-cover called as ‘NCB retention’ cover. By availing it, you can insulate yourself from losing out on the NCB even after registering a claim. That said, there are certain limitations as well as conditions to the cover. It is advisable that you go through the policy wording carefully.

 

If you are continuing with the same insurer, the NCB will be automatically reflected in your renewal letter. If you intend to switch to a different insurer you would need to submit the policy cover note of the previous insurer to the new insurer in addition to any other documents that may be requested. ​