MANAGEMENT

Detailed explanation-1: -No Claim Bonus or NCB is a reward given by an insurance company to an insured for not raising any claim requests during a policy year. The NCB is a discount ranging between 20%-50% and is given to the insured while renewing a policy. The NCB discount is offered on the premium amount during renewal.

Detailed explanation-2: -How is NCB Calculated? NCB is calculated on the amount of your car insurance premium starting from the second year. It usually begins with a 20% discount on the premium and subsequently goes up with each consecutive claim-free year.

Detailed explanation-3: -Vehicles of over and above 5 years of age are eligible for up to 50% discount on the premium as long as the owner does not make a claim. These discounts are availed under “No Claim Bonus” when you opt a comprehensive car insurance policy.

Detailed explanation-4: -You can check the applicable NCB by referring to the NCB slabs. During the online car insurance renewal process, the applicable NCB will be mentioned on the webpage. The NCB calculation will also be mentioned in your policy document post-policy purchase.

Detailed explanation-5: -The no-claim bonus starts from 0% and reaches up to 50% for each claim-free year. NCB in motor insurance is valid for a period of 90 days from the expiry date of the policy after which the NCB would lapse. Higher NCB means a higher discount for the customer.