What is NCB in Car Insurance?

A No Claim Bonus or NCB in insurance encourages car owners to drive more responsibly by rewarding them with discounts. Therefore, having a better understanding of NCB in a car insurance policy can help you with significant savings. Find out more about No Claim Bonus meaning and how you can use it to lower your policy premium rates in this post.

A No Claim Bonus (NCB) is a discount that policyholders get from us for not making any claims during a policy year. It is simply our way to reward a customer's good driving behaviour.

In simple terms, NCB in insurance generally works to make premiums during policy renewals more affordable through the application of a discount.

What Should You Know About NCB in Car Insurance?

Maximum NCB Discount is 50%

With IndusInd General Insurance, the NCB discount can be accumulated over the years and ranges from 20% to 50%.

Applicable Only to Own Damage Premium

It applies specifically to the own damage premium. Therefore, it is available for own damage and comprehensive car insurance policies and is not applicable to third-party car insurance plans.

How Does No Claim Bonus in Car Insurance Work?

The basic thing to know about NCB for car insurance is that it is not handed over to the policyholder by default. The only way to earn NCB is by refraining from raising any claim during your policy period.

It has to be earned by driving carefully and responsibly all through the policy period so that you can avoid accidents and, consequently, make claims for the same.

For every claim-free year, we apply a predefined percentage of discount to the premium. Say at the end of 12 months the insured did not claim any own damage. In this case we provide them a discount by giving NCB based discounts on their premium.

With every claim-free year, the NCB typically increases from 20% to 50% over five consecutive claim-free years

How is No Claim Bonus in Car Insurance Calculated?

NCB Rates

NCB can only be used when you renew your car policy and not before that. The NCB percentages are also predefined for up to 5 years.

No. of Consecutive Claim Free Years	Percentage of Discount on OD Premium
1 Full-Year of Insurance	20%
2 Consecutive Years of Insurance	25%
3 Consecutive Years of Insurance	35%
4 Consecutive Years of Insurance	45%
5 or More Consecutive Years of Insurance	50%

Confused About Motor Insurance Options?

Speak to Our Specialists Today

Call Us

Benefits of No Claim Bonus in Car Insurance

Reward for Responsible Driving

No Claim Bonus is our way of rewarding your responsible driving. As it increases over the subsequent claim-free years, it encourages you to be a more disciplined driver.

Reduction in Premium Amount

NCB plays a significant role in lowering the premium. It allows you to save between 20% and 50% on your car insurance premium.

NCB Can Be Transferred Between Insurers

NCB can be transferred from one insurer to another. This is because NCB is awarded to the policyholder and not the policy or the vehicle. So, when you choose to buy a new policy, you can transfer your accumulated NCB discount from your old policy, which will give you a considerable discount on your new policy premium quote.

NCB Can Be Transferred Between Vehicles

As the No Claim Bonus is provided for your responsible driving skills, it can be transferred to a new vehicle. So, if you sell your old vehicle and purchase a new one, it can be transferred to your new car insurance policy. Also, if the vehicle is sold during the policy period, the insurer issues an NCB reserving certificate, which is valid for three years from the date of sale.

How to Apply NCB for Reduced Premium?

For car insurance with no claim bonus, the NCB is automatically applied by us upon renewal. If not, you can mention that you have an accumulated bonus at the time of renewal on the renewal form.

Provide accurate details or verify the number of claim-free years as applicable to ensure you receive the correct discount.

How Can I Check NCB in Car Insurance?

The details of your No Claim Bonus will be mentioned on the webpage at the time of car insurance renewal. If you have transferred it to your new car or insurance provider, it can also be checked at the time of the new policy purchase.

What Leads to No Claim Bonus Termination?

You may not be eligible for an engine protection add-on cover under certain circumstances. For instance, if you have already filed a claim during the current policy year, insurers typically restrict the purchase of this add-on. Additionally, if your car insurance policy has expired and you fail to renew it within 90 days, you will lose the option to include engine protection coverage. These conditions are in place to minimize risk for insurers and ensure that the add-on is purchased proactively rather than after a claim or a significant lapse in coverage.

Can I Protect My No Claim Bonus?

Opt for the NCB Retention Cover Add-On

In case of an Own Damage claim filed in the next policy year, No Claim Bonus gets back to 0%. This means you have to start all over again to try and get an NCB discount during the next policy period.

If you want to avoid this, you can opt for our NCB Retention Cover add-on.

The NCB Retention Cover Add-on in our IndusInd General car insurance allows you to retain the No Claim Bonus even after making a claim.

Under our NCB-protected cover, you can file up to two claims each policy year while retaining your NCB discount.

If you file over 2 claims within the policy year, your NCB discount will reset to 0%.

Make Informed Claim Decisions

As the No Claim Bonus in car insurance rewards you for not filing a claim, it is important and wise to make claims only when absolutely necessary.

However, that does not mean you should avoid claiming if your car is heavily damaged due to an accident. Take professional help from a mechanic to find out what the estimated cost of the repair work could be.

If the cost is nominal, you can pay out of your pocket, but if there are damages that require major repair, you should raise a claim and think about NCB later.

Make Timely Car Insurance Policy Renewals

Renewing your car insurance policy at the right time is crucial to securing the No Claim Bonus. It should be renewed within 90 days of the previous policy’s expiry date.

Steps to Renew IndusInd General Insurance Car Insurance Policy
Step 1: Visit our official car insurance policy website.
Step 2: Under the Renewals tab, choose Renew Car Insurance.
Step 3: Provide your mobile number or existing policy number.
Step 4: Verify your car details and make changes if necessary.
Step 5: The screen will also display the NCB. Verify the NCB details.
Step 6: Personalise your car insurance plan by including add-on covers such as the NCB Retention Cover if you feel it is necessary.
Step 7: Pay the applicable renewal premium.
Once the payment is successfully made, your car insurance renewal with us will be confirmed and you will receive a digital copy of your renewed car insurance policy on your registered email ID.

Who Should Opt for an NCB Retention Cover Add-On?

The NCB Retention Cover is beneficial for all categories of car owners. However, it is especially important if any of the following apply to you:

Owners of Expensive Vehicles

Replacing or repairing a high-value car can be costly, especially in the case of theft. The NCB retention cover helps you keep your accumulated bonus even if you make a claim.

Residents in High-Risk areas

If you live or drive in areas prone to natural calamities, theft or accidents, the likelihood of filing a claim increases. The NCB retention cover helps you retain your bonus despite these high risks.

Long-Term Vehicle Owners

If you have owned your car for more than two years and have accumulated a significant No Claim Bonus, the NCB retention cover ensures you don’t lose this discount benefit after making a claim.

How to Transfer No Claim Bonus to a New Car Insurance Provider?

Steps for Online Transfer

Mention the No Claim Bonus earned at the time of buying car insurance online.

Provide the previous insurer details and the policy number.

The new insurer will be able to get the NCB transferred from the previous insurer.

Steps for Offline Transfer

Contact the previous car insurer and request for the NCB Certificate.

Provide all the necessary supporting documents.

Upon verification of your request and the documents, you will receive the NCB Certificate.

Submit this NCB Certificate to the new insurance provider to complete the transfer process.

Documents Required for Transferring No Claim Bonus in Car Insurance

Application form for No Claim Bonus

Copy of the previous car insurance policy

Form 29 and Form 30 - Sales Agreement

If it is a new vehicle, a copy of the booking receipt

If it is the sale of an old vehicle, delivery note and copy of ownership transfer certificate

NCB Transfer - Terms and Conditions

The No Claim Bonus (NCB) offers flexibility when it comes to transfers. It can be moved from one vehicle to another, provided the policyholder remains the same. Additionally, NCB can also be transferred between insurers, but this is only possible during the policy renewal process. This ensures that policyholders continue to enjoy the benefits of their claim-free record, even when switching vehicles or insurance providers.

Conclusion

No Claim Bonus (NCB) is a discount on policy premiums that the insurer offers to a policyholder for making no claims during a policy year. It’s a great addition to any comprehensive car insurance policy, especially Long Term Car Insurance.

Moreover, you can also transfer your accumulated NCB within 90 days of your renewal date from one insurer to another. So if you’re currently on the lookout for a new car insurance plan, you’ll be happy to know that IndusInd General Insuranceallows NCB transfers.

However, remember to present your No-Claim Bonus certificate from your previous insurers to ensure the transfer.

Author - Model Car

IndusInd General Insurance

Aapke Protection ka All-rounder

IndusInd General Insurance is one of the leading general insurance companies in India. The Company offers a well-rounded and comprehensive bouquet of products including Motor Insurance, Health Insurance, and Travel Insurance, and offers customised solutions to meet the protection needs of each customer.

Car insurance starting at just ₹308 per month*

Protect Your Car Instantly!

Enjoy smooth online processes and 24/7 support, ensuring help is always within reach!*

View Plans

Voices of Trust

Stories shared by our happy customers!

Total Average Rating

Based on ratings

View All

Asset Publisher

4.8 ★ ★ ★ ★ ★ (2105)

Roshan Jha

Meerut

Seamless digital experience

Quick and easy! The policy details were clearly mentioned, making it simple to choose the right one.

Suman

Noida

Limited policy options

A fair and simple process. The Car insurance covers the basics well.

Aniket

Chirawa

Value for money

The best insurance experience I've had! Simple, affordable, and reliable. Highly satisfied with my Car policy.

Balasaheb Babu Rao Deosarkar

Yavatmal

4.5

Seamless digital experience

My experience of getting my car insurance was easy and straightforward. I am satisfied with the policy and don't see a need for extras.

Abdul Bawani

Yavatmal

Quick policy issuance

Purchcasing my Car felt effortless and user-friendly. I am satisfied with the main policy and don't see a need for extras.

Debashish Sen

West Tripura

Quick policy issuance

The journey of purchasing Car insurance felt effortless and user-friendly. I am satisfied with the main policy and don't see a need for extras.

Rupak Das

West Tripura

Quick policy issuance

From start to finish, the process of getting my Car insurance from Reliance (now IndusInd) was convenient. It met my requirements well and felt tailored to my needs. Currently, I don't think I require any additional plans or add-ons. I found the entire process trustworthy and efficient.

Prasen Jitpal

West Midnapore

Quick policy issuance

I recently purchased my Car insurance and found the experience very smooth. It met my requirements well and felt tailored to my needs.

Sankuratri Venkata Bulli Rani

West Godavari

Quick policy issuance

The journey of purchasing Car insurance from Reliance Insurance Company (now IndusInd Insurance Company) felt effortless and user-friendly. The plan offered exactly the type of coverage I was expecting. No complementary product was necessary for me at this stage. I found the entire process trustworthy and efficient.

Manthenaravi Teja Varma

West Godavari

Quick policy issuance

Buying a Car policy through the platform of Reliance General Insurance (now IndusInd General Insurance) was straightforward and quick. The plan offered exactly the type of coverage I was expecting. Currently, I don't think I require any additional plans or add-ons. I'm happy with how everything went and feel secure with my policy.

Karem Raja Rao

West Godavari

Quick policy issuance

The journey of purchasing Car insurance from Reliance Insurance Company (now IndusInd Insurance Company) felt effortless and user-friendly. I felt that my protection needs were well addressed with this policy. I am satisfied with the main policy and don't see a need for extras.

Nekkalapu Vijaya Lakshmi

West Godavari

Quick policy issuance

The journey of purchasing Car insurance from Reliance Insurance (now IndusInd Insurance) felt effortless and user-friendly. I felt that my protection needs were well addressed with this policy. Currently, I don't think I require any additional plans or add-ons. I found the entire process trustworthy and efficient.

Gunnampurna Chandrasekhar

West Godavari

Quick policy issuance

From start to finish, the process of getting my Car insurance from Reliance General Insurance (now IndusInd General Insurance) was convenient. I felt that my protection needs were well addressed with this policy. I did not feel the need for any other products at this time.

Vendrabala Nageswara Rao

West Godavari

Quick policy issuance

I had a positive overall experience while applying for Car insurance from Reliance (now IndusInd) . It met my requirements well and felt tailored to my needs. I did not feel the need for any other products at this time. I found the entire process trustworthy and efficient.

Balla Leela Naga Surya Kumari

West Godavari

Quick policy issuance

From start to finish, the process of getting my Car insurance from Reliance General Insurance (now IndusInd General Insurance) was convenient. The plan offered exactly the type of coverage I was expecting. I am satisfied with the main policy and don't see a need for extras. I found the entire process trustworthy and efficient.

Narendra Kumardevaneni

West Godavari

Quick policy issuance

I was impressed by the overall Reliance Insurance (now IndusInd Insurance) experience. The platform was intuitive, and the coverage felt like a perfect fit. No complementary product was necessary for me at this stage. I found the entire process trustworthy and efficient.

Sobhit Gupta

New Delhi

Quick policy issuance

I recently purchased my Car insurance and found the experience very smooth. The plan offered exactly the type of coverage I was expecting.

Ritesh Gupta

New Delhi

Quick policy issuance

I had a positive overall experience while applying for Car insurance with Reliance General Insurance (now IndusInd General Insurance) . I felt that my protection needs were well addressed with this policy. I did not feel the need for any other products at this time. The convenience and clarity made this a good experience.

Nishida Noonhampurath

Wayanad

Quick policy issuance

The journey of purchasing car insurance felt effortless and user-friendly. The plan offered exactly the type of coverage I was expecting.

Sushil Madhukar Raosapkal

Washim

Quick policy issuance

Buying a Car policy through the platform of Reliance General Insurance (now IndusInd General Insurance) was straightforward and quick. The coverage provided matches my expectations and feels comprehensive. No additional coverage seemed required for my needs. I'm happy with how everything went and feel secure with my policy.

Gaddam Keerthi

Warangal

Quick policy issuance

I recently purchased my Car insurance from Reliance (now IndusInd) and found the experience very smooth. It met my requirements well and felt tailored to my needs. Currently, I don't think I require any additional plans or add-ons. The process felt reliable and I would recommend it to others.

Nagamandla Rama Devi

Warangal

Quick policy issuance

Buying a car policy through the platform was straightforward and quick. The coverage provided matches my expectations and feels comprehensive.

Nadipellimadhava Rao

Warangal

Quick policy issuance

The journey of purchasing car insurance from Reliance (now IndusInd) felt effortless and user-friendly. I felt that my protection needs were well addressed with this policy. Currently, I don't think I require any additional plans or add-ons.

Sayyedja Lalahamed

Warangal

Quick policy issuance

The journey of purchasing Car insurance felt effortless and user-friendly. It aligns well with what I needed from an insurance policy.

Jaya Krishna Madupu

Warangal

Seamless digital experience

The journey of purchasing Car insurance felt effortless and user-friendly. The product details, coverage and offerings do not match my needs currently.

Thanneeru Srinivas

Warangal

Quick policy issuance

I had a positive overall experience while applying for Car insurance. It aligns well with what I needed from an insurance policy.

Harikrishna Kavati

Warangal

Quick policy issuance

Buying a Car policy through the platform of Reliance Insurance (now IndusInd Insurance) was straightforward and quick. The coverage provided matches my expectations and feels comprehensive. Overall, it was a seamless experience and I am satisfied.

Asra Parveen

Warangal

Quick policy issuance

From start to finish, the process of getting my Car insurance from Reliance (now IndusInd) was convenient. The plan offered exactly the type of coverage I was expecting. I am satisfied with the main policy and don't see a need for extras. I'm happy with how everything went and feel secure with my policy.

Veldandi Satish

Warangal

Quick policy issuance

The journey of purchasing Car insurance from Reliance General Insurance (now IndusInd General Insurance) felt effortless and user-friendly. The coverage provided matches my expectations and feels comprehensive. The process felt reliable and I would recommend it to others.

Mugala Manohar

Warangal

Quick policy issuance

From start to finish, the process of getting my Car insurance from Reliance Insurance Company (now IndusInd Insurance Company) was convenient. It met my requirements well and felt tailored to my needs. No complementary product was necessary for me at this stage. The process felt reliable and I would recommend it to others.

Mutika Raju

Warangal

Quick policy issuance

Buying a Car policy through the platform was straightforward and quick. I felt that my protection needs were well addressed with this policy.

Kotte Siromani

Warangal

Quick policy issuance

I recently purchased my Car insurance from Reliance (now IndusInd) and found the experience very smooth. It met my requirements well and felt tailored to my needs. While digital is fine, having a physical document would add assurance. Overall, it was a seamless experience and I am satisfied.

Pasunoori Prashanth

Warangal

Quick policy issuance

I recently purchased my Car insurance and found the experience very smooth. The coverage provided matches my expectations and feels comprehensive.

Nagelli Rahul

Warangal

Quick policy issuance

Buying a car policy through the platform was straightforward and quick. It aligns well with what I needed from an insurance policy.

Ananthula Umamaheshwar

Warangal

Quick policy issuance

From start to finish, the process of getting my Car insurance was convenient. It met my requirements well and felt tailored to my needs. I am satisfied with the main policy and don't see a need for extras. Overall, it was a seamless Reliance Insurance (now IndusInd Insurance) experience and I am satisfied.

Sujatha Chittem

Warangal

Quick policy issuance

The journey of purchasing Car insurance from Reliance Insurance Company (now IndusInd Insurance Company) felt effortless and user-friendly. It met my requirements well and felt tailored to my needs. The process felt reliable and I would recommend it to others.

Nimmala Saideepak

Warangal

Value for money

I recently purchased my Car insurance and found the experience to be fine.

M Sainivas

Wanaparthy

Quick policy issuance

The car insurance process was efficient and well-supported. I felt like I was making a smart, informed choice.

Nagireddi Madhukishor

Vizianagaram

Quick policy issuance

I had a positive overall Reliance (now IndusInd) experience while applying for Car insurance. The plan offered exactly the type of coverage I was expecting. I did not feel the need for any other products at this time. Overall, it was a seamless experience and I am satisfied.

Dadi Venkatagiri Babu

Vizianagaram

Quick policy issuance

I had a positive overall Reliance Insurance (now IndusInd Insurance) experience while applying for Car insurance. I felt that my protection needs were well addressed with this policy. I am satisfied with the main policy and don't see a need for extras.

Shashidhar Guntha

Vizianagaram

Quick policy issuance

I recently purchased my Car insurance from Reliance General Insurance (now IndusInd General Insurance) and found the experience very smooth. It aligns well with what I needed from an insurance policy. No complementary product was necessary for me at this stage.

Vani Kota

Vizianagaram

Quick policy issuance

The journey of purchasing Car insurance from Reliance (now IndusInd) felt effortless and user-friendly. It met my requirements well and felt tailored to my needs. No complementary product was necessary for me at this stage.

Lonka Gopal Reddy

Vizianagaram

Quick policy issuance

I recently purchased my Car insurance from Reliance (now IndusInd) and found the experience very smooth. I felt that my protection needs were well addressed with this policy. I did not feel the need for any other products at this time.

Devarasetti Uma Manoj

Visakhapatnam

4.5

Seamless digital experience

I found the insurance experience to be well-paced and user-friendly. The policy I selected felt comprehensive and relevant.

Nethala Suri Babu

Visakhapatnam

Quick policy issuance

Buying a car policy through the platform of Reliance Insurance Company (now IndusInd Insurance Company) was straightforward and quick. It aligns well with what I needed from an insurance policy. No additional coverage seemed required for my needs.

Chowdary Appala Naidu

Visakhapatnam

Quick policy issuance

I had a positive overall experience while applying for Car insurance with Reliance General Insurance (now IndusInd General Insurance) . I felt that my protection needs were well addressed with this policy. No additional coverage seemed required for my needs. Overall, it was a seamless experience and I am satisfied.

Pentakota Satya Eswara Sanyasir

Visakhapatnam

Quick policy issuance

I had a positive overall experience while applying for car insurance. It met my requirements well and felt tailored to my needs.

Ravi Shankarnandikolla

Visakhapatnam

Quick policy issuance

The journey of purchasing Car insurance felt effortless and user-friendly. I felt that my protection needs were well addressed with this policy.

Badda Appalanaras Amma

Visakhapatnam

Quick policy issuance

Buying a Car policy through the platform of Reliance Insurance Company (now IndusInd Insurance Company) was straightforward and quick. It aligns well with what I needed from an insurance policy. No complementary product was necessary for me at this stage. I'm happy with how everything went and feel secure with my policy.

A Lakshmana Murty

Visakhapatnam

Quick policy issuance

The journey of purchasing Car insurance from Reliance Insurance Company (now IndusInd Insurance Company) felt effortless and user-friendly. It met my requirements well and felt tailored to my needs. I am satisfied with the main policy and don't see a need for extras.