🔑 What is NCB?

• NCB is a discount on the Own Damage (OD) premium of a motor insurance policy.

• It is earned only if no claim is made during the policy period of 12 months .

• NCB applies to:

  • Private cars

  • Two-wheelers

  • Commercial vehicles (OD section)

• Not applicable for: Motor trade policies, road transit risks, and internal risks

  
  

📊 NCB Discount Structure

Claim-Free YearsNCB Discount on OD Premium1 year20%2 consecutive years25%3 consecutive years35%4 consecutive years45%5 consecutive years or more50% (maximum)

👉 Example:
If your car’s OD premium is ₹10,000 and you have 3 claim-free years, you get a 35% NCB = ₹3,500 discount. You pay only ₹6,500 OD premium at renewal.

🔄 Key Features of NCB

1. NCB Belongs to the Owner, Not the Vehicle

• If you sell your car, NCB stays with you—not the new owner .

• You can transfer it to a new vehicle of the same class.

2. Transferable Between Insurers

• Switching to a new insurance company? Your NCB comes along, as long as you renew within 90 days of expiry .

• Proof: Renewal notice, NCB certificate, or declaration from the previous insurer.

3. NCB on Death of Owner

• If the policyholder dies, NCB can be transferred to the legal heir (spouse/children/parents) .

4. NCB in Case of Theft or Substitution

• If your insured car is stolen and you buy a new car within 90 days, your NCB is still valid .

5. Institutional NCB Transfer

• If a company-owned vehicle is later transferred to an employee who used it, the NCB can be transferred to them .

🛡️ NCB Protection Add-On

Normally, any claim reduces NCB back to 0%.
👉 But with NCB Protection Cover, you can retain your NCB even if you make one minor claim in a year (like glass or accessory damage) .

⚠️ How NCB Can Be Lost

• If a claim is made (except minor ones under NCB Protection).

• If renewal is not done within 90 days of expiry.

• If false declarations are made (insurer can cancel policy and withdraw NCB) .

✅ Why NCB Matters

• Encourages safe driving and careful use of the vehicle.

• Leads to big savings—up to 50% of OD premium.

• Transferable, so your good driving record stays with you.

  
  

🎯 Conclusion

The No-Claim Bonus is more than a discount—it’s a reward for responsible driving. Customers should always:

1. Renew on time,

2. Avoid small claims that could wipe out big discounts,

3. Consider NCB Protection add-on for long-term savings.
   

👉 Pitch Line for Agents:
“Drive safe, save big! With every claim-free year, your insurance gets cheaper. Protect your NCB—it’s your reward for being a smart driver.”