To Buy Used Car or Instant Car Loan approvals,   +91 9900037613

What is No Claim Bonus in Motor Insurance

If you have ever wondered how your good driving habits can pay off, then you are in for a treat with No Claim Bonus (NCB) in motor insurance. Think of NCB as a reward, a pat on the back from your insurance company for being a safe and responsible driver.

No claim bonus

What is No Claim Bonus?

No Claim Bonus (NCB) is a distinctive feature in motor insurance that acts as a reward for policyholders who maintain a claim-free record over a specific period. This concept is designed to recognize and encourage safe driving habits, providing financial benefits to those who steer clear of accidents and insurance claims. Imagine each year you drive without making a claim on your insurance. That clean slate you maintain is recognized by insurance providers as a No Claim Bonus. It’s like a discount for your good behavior on the road.

Benefits of No Claim Bonus in the context of Motor Insurance:

  1. Accumulation and Percentage Increase:
  • NCB is earned by policyholders for each consecutive claim-free year. The bonus percentage typically starts at around 20% and increases with every additional year without a claim.
  • The percentage increase can vary between insurance companies but often reaches a maximum of 50% after a specified number of years.
  1. Maximum NCB Limit:
  • While the standard NCB limit is often set at 50%, some insurance providers may offer higher percentages or have different maximum limits.
  • Once the maximum NCB is achieved, policyholders can maintain that level as long as they continue to have claim-free years.
  1. Transferability:
  • One of the key benefits of NCB is its transferability. If a policyholder decides to switch to a new insurance provider, they can carry over their accumulated NCB to the new policy.
  • The new insurer considers the NCB earned with the previous provider and applies a discount accordingly.
  1. NCB Protection:
  • Some insurance policies offer NCB protection as an add-on feature. This protection allows policyholders to make a certain number of claims without losing their accumulated NCB.
  • It provides a safety net for policyholders who want to preserve their NCB despite having to make a claim.
  1. Time Frame for Validity:
  • NCB is typically valid for one to two years after the policy expires. If a policyholder fails to renew their policy within this timeframe, they may lose the accumulated NCB.
  • Renewing the policy within the stipulated time ensures that the NCB remains active.
  1. Impact of Claims on NCB:
  • Making a claim against the insurance policy usually results in the reduction or loss of the NCB.
  • The loss of NCB can vary based on the severity of the claim and the terms and conditions of the insurance policy.
  1. No Claim Bonus Certificate:
  • Upon renewal, insurers provide a No Claim Bonus certificate indicating the earned discount. This certificate is crucial when switching insurers, as it serves as proof of the policyholder’s claim-free record.
  1. Usage for Multiple Vehicles:
  • NCB can often be applied to multiple vehicles insured under the same policyholder’s name. This flexibility is beneficial for individuals who own and insure more than one vehicle.
  1. Discounts for Named Drivers:
  • Some insurers extend NCB benefits to named drivers on the policy. This means that if a named driver has a claim-free record, they can accumulate NCB and use it for their own insurance policies in the future.


Understanding the details of No Claim Bonus is essential for policyholders to make informed decisions about their motor insurance coverage. It not only provides financial benefits but also serves as an incentive for safe driving practices. So, drive safe, rack up those claim-free years, and watch your NCB grow along with your savings. It’s a simple yet rewarding concept that puts a smile on the faces of responsible drivers everywhere.

Now, imagine combining the joy of owning your dream car with the savings from NCB. That’s where Apnacar steps in. They’re like your trusty guide, helping you find the perfect loan for your dream car.