5 Amazing Benefits of having a good no claim bonus

no claim bonus


People who are willing to invest money in insurance often ponder over ‘what is ncb’? No claim bonus is offered by the policyholder to the investor. The bonus is given to those investors who do not make any claims throughout their policy period. NCB is calculated as a discount on the premiums that are invested over the years.

5 Amazing Benefits of having a good no claim bonus

People can get No Claim Bonus both in both car insurance and health insurance. Some of the benefits associated with no claim bonus are 

Transferable NCB

If people want to buy a new car and sell the old one, then they can transfer the NCB that they have gained till the date. This NCB is transferable if the type of vehicle they buy is of the same kind. In this case, people get an NCB certificate which is valid for 3 consecutive months.

Rewarding facility 

Every person who opts for car insurance tries to drive safely during the policy period. So, if you have made no claims during the policy year and proven yourself as a secured driver, the insurance company will reward you NCB as a discount, which can be redeemed at the time of the renewal. The No Claim Bonus discount varies from 30-40%. It is a kind of incentive provided on behalf of the company to inspire all its customers to practise safe driving.

Savings at the time of premium

People can earn no claim bonus if they drive more cautiously. This is one of the best ways to cut down at the time of the renewal premium. So, they can save their money at renewal premium. 

Allowances on the premiums

Allowances on the premiums are charged for the policy. People can enjoy multiple benefits if a higher sum of money is insured. For all claim-free years, most insurance companies offer NCB from 5% to 10%. People can transfer the policy to other insurance services and with that their accrued NCB is also transferred.  

As per new IRDAI rules, the NCB will not expire:

If anybody fails to pay the premium within the grace period, then the policy expires due to the non-payment and the NCB benefits gained so far also expires with the policy. If several claims are made within the same policy period, the available amount insured, and the aggregated NCB benefits are all taken into consideration. According to the new rules and regulations of IRDAI, the total NCB accrued will not vanish on filing a claim of low value. In case of family floater policies, the NCB benefits can be utilised by any of the family members.

Most of the health insurance companies allow a fixed percentage of no claim bonus. It is seen that some of the insurers are offering an extra add-on to increase the percentage offered on  NCB. Some of these add on covers can upgrade the NCB up to 60% in one year.

No claim bonus is a very common term in car and health insurance. People who are unaware of this word can get the idea of what is ncb from insurance sectors. However, the discount rate and the type of NCB offered differs from one insurer to another.

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