Reward bonus earned for maintaining claim-free policy years.
No Claim Bonus (NCB) is a financial reward provided by insurance companies to policyholders who do not file any claims during a policy year. In Motor Insurance, NCB offers a direct discount (20% to 50%) on renewal premiums. In Health Insurance, NCB increases the Sum Insured (10% to 150%) at zero extra cost.
In Motor Insurance: After 5 claim-free years, standard car renewal premium receives a massive 50% NCB discount. In Health Insurance: A ₹10 Lakh plan with Super NCB grows to ₹20 Lakhs cover after 2 claim-free years.
In Motor Insurance, NCB belongs to the policyholder (vehicle owner), not the car. When you sell your old car, you can transfer your 50% NCB to your new car.
Many policyholders misunderstand this clause until a claim actually occurs. Always verify the exact definitions in your policy wording schedule rather than relying on verbal marketing summaries. Disclose all material facts truthfully at the time of proposal to help ensure smooth claim assessment without non-disclosure issues.
NCB in motor insurance can be transferred across any registered general insurance company upon producing an NCB Reserving Letter.
Consider NCB Protect add-on in car insurance so a single minor claim does not wipe out your accumulated 50% NCB discount.
Explore policy features, benefits, terms, and parameters for this insurance category.
Speak with a Qualified Insurance Sales Person (ISP) at RakshaPoint IMF for parameter-based guidance.
Transparent parameter-based policy guidance from qualified Insurance Sales Persons (ISPs) under IRDAI IMF regulations.