No claim Bonus

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NCB stands for No Claim Bonus. A kind of reward given by an insurance company to an insured person, for not raising any claim requests during a policy year. No Claim Bonus discount is offered on the premium amount during renewal with ranging between 20%-50%.

No claim Bonus

How to calculate NCB?

Insured person during the first year, claim request not has been raised then he/she is eligible for No Claim Bonus. As you know that it’s applicable from the second year of the policy period. The insurance provider offers you with a discount of 20% on the premium amount that’s called NCB and this can go up to 5 consecutive years. For better understand refer the below chart

Chart of No Claim Bonus

Age of policyNCB Percentage
After year one of no claim20%
After two consecutive years of no claim25%
After three consecutive years of no claim35%
After four consecutive years of no claim45%
After five consecutive years of no claim50%

Suppose you are looking for to buy a another new car just make sure you get a No Claim Certificate While buying a new insurance policy for your car in case if you haven’t had any accident for 5 years you should tell them you had No Claim Certificate with old insurance company name and with old policy number its will save up to 50% on while buying insurance policy. For every subsequent claim free year, The NCB increased by 10% until it reaches a peak of 50%. That’s why it’s crucial to renew the car insurance to get the benefit of increasing NCB.

FAQ – No claim Bonus

Is No Claim Bonus worth it?

Absolutely yes If you have five years’ no claims discount, it will significantly cut the cost of your car insurance up to 50 % You could lose all that for just one accident.

Do insurance companies check no claims bonus?

Yes most insurers ask you Regarding NCB within a couple of weeks of giving you a quote.

How long does no claims bonus last without insurance?

Usually lasts for 2 Years

Does no claims bonus are transferable?


Is there a no claims database?

When you renew your insurance and you want to move to a new motor insurance provider, the NCD Database enables the new insurer to verify your no claims discount directly from the database. Details provided by the database include the number of discount years and whether these are protected, guaranteed or standard.

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