Who does not love a reward? You might be surprised to learn that your careful driving can earn you rewards on your car insurance. This reward is called the No Claim Bonus (NCB). Many people in India miss out on its full benefits simply because they do not fully understand how it works.
Let us guide you through the benefits of NCB you might be missing, so you can enjoy every advantage your safe driving offers.
How Does No Claim Bonus Work in Your Favour?
Curious how your No Claim Bonus (NCB) can do more than just cut costs? Let us break down the powerful ways NCB rewards your safe driving and helps you maximise savings over time.
1. Substantial Savings on Premium Over Time
One of the biggest benefits of NCB is how it grows year after year.
- In the first year without making any claim, you can get a 20% discount on your car insurance renewal
- If you keep driving safely and do not raise any claims, the discount can go up every year, reaching 50% after five continuous claim-free years.
This means that by being a careful driver over time, you can save almost half on your renewal premium. It is a great way to reward yourself for safe driving habits.
2. Transferable Between Insurers
Many people think that NCB is attached to the car, but the truth is that NCB is linked to you, the policyholder.
- If you choose to change insurance companies, you can take your accumulated NCB along with you.
- This ensures you still get the discount you have earned, even when you change insurers.
If you are wondering how to check NCB in car insurance, you can look at your renewal notice or contact your insurer to find out the bonus you currently hold.
3. Applicable to Both Car and Bike Policies
If you own both a car and a two-wheeler, here is some good news: NCB applies to both.
- NCB works separately for your car insurance and your bike insurance.
- This means you can build a no-claim record on each policy and enjoy discounts on both vehicles.
For those managing multiple vehicles, this is a smart way to double your savings by maintaining careful driving across all your rides.
4. NCB Certificate Can Be Transferred to a New Car
Are you planning to sell your old car and buy a new one? Do not worry, you can keep your NCB.
- Request an NCB transfer certificate from your current insurer.
- This certificate allows you to transfer your accumulated NCB to your new car insurance policy.
This way, you do not lose out on years of careful driving, and you continue to enjoy discounts even after buying a new car. Always remember to ask for the transfer certificate to protect your bonus.
5. Option to Protect NCB with Add-ons
Accidents can happen, but that does not mean you must lose your NCB.
- With the NCB Protection Add-on, you can make one or sometimes even two claims in a year without losing your accumulated bonus.
- This add-on makes sure that small, necessary claims do not wipe away the savings you have earned over time.
If you have built up a good NCB, adding this protection to your policy can be a smart decision.
6. Encourages Safe and Responsible Driving
NCB is more than just a discount; it is a reward for responsible driving.
- Knowing that your renewal premium depends on staying claim-free encourages better driving habits.
- This adds value not just in terms of money, but also by making the roads safer for everyone.
In a way, NCB creates a culture of careful driving, helping you and others enjoy a safer driving experience.
7. Can Impact Loan Eligibility or Car Resale
Here is a benefit many drivers overlook. A strong NCB record can improve how others see you.
- When you apply for a car loan or even other insurance products, your history of safe driving and a good NCB can present you as a low-risk customer.
- If you plan to sell your car, buyers may see your car more positively when they notice a clean claim history supported by your NCB record.
Maintaining your NCB can help you get better offers on loans or when reselling your car.
8. Useful for Long-term Comprehensive Policies
Long-term car insurance policies, which cover multiple years, can help you lock in your NCB benefits.
- With fewer renewals, you deal with less paperwork, and the chances of losing your bonus due to small claims are lower.
- Over time, this makes long-term policies a smart option for drivers who want both convenience and maximum savings.
By choosing a comprehensive, multi-year plan, you can enjoy steady NCB benefits while making your insurance process simpler.
Be sure to check your accumulated bonus before your next renewal. Every claim-free year not only protects you and your car but also rewards you with valuable discounts. Drive safely and enjoy the long-term savings you deserve.
