Car insurance companies offer a No Claim Bonus or NCB to their customers who do not claim any compensation during the policy period. Typically, the NCB is reflected in the discounted premium that you pay while renewing your four-wheeler coverage plan. Depending on your insurer, the bonus can range between 20% and 50% for every claim-free year.
So, let’s explore how to check the NCB in any car insurance plan.
3 Easy Methods to Check NCB in Car Insurance
As mentioned, here are the simple ways how to check NCB in car insurance plan:
Method 1: Contact Your Insurance Company
If you are wondering how to confirm your policy’s NCB status the easiest way, we suggest calling your insurer's helpline. Alternatively, you may contact the insurance provider via email or visit their closest branch.
Method 2: Take Help from Online Platforms
Most car insurance companies nowadays follow a 100% digital approach. They offer official websites or mobile applications to review policy details. These facilities also allow you to check your NCB status.
To check the details, you will need to log in to your account and navigate to the section showing details related to policy renewal. There, you will find all the information regarding NCB.
Method 3: Verify Your Policy Terms
Any car insurance plan outlines all the appropriate NCB slabs based on claim years. Thus, you can find the required information by referring to the policy document. For this, you can either consult the physical copy of the document or go through the digital format. It will give you a clear idea regarding what NCB percentage you are eligible for.
Note: While renewing your car insurance, it is essential to inform your insurer about the accumulated NCB to avail yourself of the promised benefits. You can easily do so by mentioning the gathered NCB percentage in the relevant section when filling out the renewal application form.
Many insurers may provide up to a 50% no-claim bonus when their customer does not make a single claim for straight 5 years.
How Do Insurance Companies Determine NCB in Your Car Insurance?
Normally, the following factors are taken into consideration while calculating your car insurance policy’s NCB:
Number of Claim-free Years
It simply indicates the number of consecutive years during which you maintained a valid insurance policy with the insurer without filing any claims.
NCB Discount Table as per the Policy
Every insurer offers a table of premium discount percentages against the number of claim-free years. This table plays a vital role in calculating the accumulated NCB.
Application of the Discount on Your Premium
To find out the revised premium after applying an NCB discount, multiply the percentage by your new premium amount. Also, it is important to note that the NCB clause only applies to comprehensive and own damage coverage plans and not third-party liability insurance policies.
For instance, your desired coverage plan currently attracts an annual premium of Rs. 25,000. However, you have maintained comprehensive insurance from the same provider for the past three years without filing any claims.
Now, if the company promised to offer a 35% no-claim bonus to similar clients, then as per their policy clauses, you would be eligible for a discount of 35/100 * Rs. 25,000 = Rs. 8,750 on your insurance premium renewal. Consequently, your car insurance policy's new premium would be Rs. (25,000 - 8,750) = Rs. 16,250.
Can You Lose Your NCB While Renewing Four-wheeler Insurance?
No-claim bonuses are only reward points for benefits that every policyholder can earn for not filing claims during the coverage tenure. Thus, you lose your no-claim bonus when you make a claim following any accident or abrupt vehicle breakdown.
Alternatively, if you fail to renew car insurance policy with the NCB clause within 90 days of expiration, the insurer can also nullify your accumulated no-claim bonus.
Is it Possible to Transfer No Claim Bonus in Car Insurance?
Yes, every policyholder can transfer their accumulated NCB while changing their insurer or vehicle. To transfer NCB benefits to a new car, you must ensure your car comes under the same body type or vehicle class. Your insurer may ask for necessary documentation during your policy renewal to establish this fact.
Otherwise, when you wish to change your insurance company, you must inform the new insurer about your NCB status and provide the essential documents as informed on their website.
Most car insurance companies provide NCB as an add-on feature with comprehensive plans on policy renewals. You can also benefit from these benefits and consider upgrading from third-party liability cover, which offers total peace of mind.
