5 things to know about no claim bonus (NCB) in car insurance

1.NCB is a benefit given to a vehicle insurance policy holder for not raising any claims during a policy year.
2.The NCB helps in getting a discount ranging between 20%-50% when renewing a policy.
3. The discount is incremental and depends upon the continuous number of years for which no insurance claim has been made.
4.NCB is linked to the policyholder and not to the vehicle. It can be switched from one car to another.
5.NCB encourages one to drive safe and reduce incidence of claims.


Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.