Facts About NCB in Car Insurance | Finserv MARKETS

Facts About NCB in Car Insurance

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About NCB in Car Insurance

While most policyholders are familiar with NCB in car insurance, they often get confused with the nuances of the reward during policy renewal. Though we know it’s got something to do with getting a discounted car insurance premium, that’s not all. So, if you are wondering what exactly NCB is in car insurance, let us explain that in brief for you.

A No Claim Bonus is an incentive offered by insurance providers to encourage safe driving. On making zero claims throughout the policy period, you receive a reward in the form of a discount, starting from 20% and going up to 50%. Now, let’s understand some key facts related to NCB in car insurance that you must know.

  • NCB is Transferable

One of the most convenient features of the No Claim Bonus is that it is easily transferable. In case you are purchasing a new four-wheeler and selling off your old one, you can simply transfer the NCB reward to your new car. Similarly, this is possible if you are switching insurance providers as well.

However, something you must keep in mind is that NCB in car insurance cannot be shared. The discount can’t be shared between two insurance policies. Furthermore, the NCB reward can only be transferred between similar types of vehicles and thus, you cannot transfer it from your car to your bike.

  • NCB is Available With Comprehensive Insurance

To enjoy the features of the No Claim Bonus, you must have a comprehensive car insurance policy. In case you have only bought a third-party insurance plan, you cannot earn the NCB discount.

Furthermore, the reward is only applicable to the Own Damage (OD) cover component of the comprehensive plan. Thus, you can get a discounted OD cover premium, offering an affordable car insurance price.

  • NCB is Subject to Termination

The No Claim Bonus in car insurance can be terminated or cancelled on two accounts. Firstly, if you make any claims during the policy term, the accumulated bonus will turn zero and you will have to start from scratch.

Secondly, if you fail to renew your policy within 90 days of its expiration, you will lose the NCB reward. In case you forget to renew your car insurance policy during the grace period, the bonus shall be cancelled. So, it is essential to opt for timely car insurance renewal to enjoy continued coverage.

  • NCB is Only Available on Renewal

Unless you have transferred the NCB discount from your old insurance policy to the new one, you won’t be eligible for a reward. On renewing your comprehensive car insurance plan after the first claim-free year, you can avail a discount of 20% on the premium quote. If you do not opt for renewal, you won’t get the NCB reward.

Moreover, by continuing to make zero claims for five consecutive years, you can enjoy a bonus of up to 50%. However, it is recommended to avoid paying for high insurance claims.

  • NCB Transfer Certificate has a Validity

If you have sold off your old vehicle and applied for an NCB transfer certificate, you must know its validity. No Claim Bonus in car insurance is valid for up to 3 years and can be transferred to a fresh insurance policy or a new car.

So, don’t wait much longer to safeguard your vehicle from perils and utilise the NCB for a discounted premium rate. Finserv MARKETS facilitates a speedy transfer of NCB and offers comprehensive coverage to your vehicle, so head over to our platform now!

  • NCB Belongs to the Policyholder

It is crucial to know that the No Claim Bonus in car insurance belongs to you (the policyholder) and not the vehicle or the insurance plan. This is why you can retain the bonus when you purchase a brand-new vehicle or switch insurance companies. Even if you do not want to buy a car immediately, you can hold onto the earned NCB without any worries!

  • NCB Reward can be Secured

So, what if we told you it was possible to make a claim and not lose your NCB? Well, that’s true. You can opt for an add-on cover termed as NCB Protect cover to secure your discount in the event of a mishap. Such a rider allows you to make a certain number of claims during the policy period without jeopardising the bonus.

You can purchase the NCB Protection cover over and above the car insurance plan and financially protect your vehicle from risks.

Bottom Line

Now that you know some crucial facts about NCB in car insurance, it is time to secure yourself with a comprehensive car insurance policy if you haven’t done so, yet! Estimate the insurance premium with our car insurance premium calculator to plan your coverage better.

With Finserv MARKETS, you can enjoy easy NCB transfers, a reliable claim process, lucrative add-ons and more! So, don’t put it off any longer and gain financial protection from various risks.

FAQs on No Claim Bonus in Car Insurance

  • ✔️What is the maximum discount available under the No Claim Bonus in car insurance?

    The maximum discount you can avail under the NCB in car insurance is 50% for making zero claims for five consecutive years.

  • ✔️Can you lose the NCB discount on cancelling your car insurance policy?

    Yes. If you cancel your car insurance plan before expiry, you can lose the NCB discount. Thus, it is recommended to complete the policy tenor and get an NCB transfer certificate to retain the bonus.

  • ✔️Is No Claim Bonus worth it?

    Yes. You can avail a discount of 20-50% on your car insurance premium to secure yourself from unfortunate risks. The NCB in car insurance greatly lowers the cost of buying coverage and thus, it is worth it.

  • ✔️Is No Claim Bonus an add-on cover?

    No. The NCB in car insurance is not an add-on cover but a discount that you can earn after purchasing comprehensive car insurance.

  • ✔️Is it recommended to avoid making small claims to retain my NCB reward?

    You should only pay for car insurance claims that you can manage. However, if the claim amount is small, then you can pay for it and avail the NCB during car insurance renewal.