Whether you’ve just got your first car or have been driving for years, there’s one thing every smart car owner wants to protect their No Claim Bonus (NCB). This reward is like a pat on the back for being a responsible driver.
But how exactly do you make the most of it? If you’re wondering how to maximise your NCB while keeping your car insurance affordable, you’re in the right place. Let’s break it down in simple terms.
What is a No Claim Bonus (NCB) in Car Insurance?
NCB in car insurance is a reward given by your insurance provider for not raising any claims during the policy period. Think of it as a loyalty bonus that gets better each year you don’t make a claim.
Here’s how NCB has grown over the years:
| Claim-Free Years | NCB Percentage |
| After 1st year | 20% |
| After 2nd year | 25% |
| After 3rd year | 35% |
| After 4th year | 45% |
| After 5th year | 50% (Maximum) |
The more years you go without a claim, the more you save on your car insurance renewal premium.
Why NCB in Car Insurance is Worth Protecting?
A good NCB can help you enjoy the following:
- Lower Premiums
Save up to 50% on the own-damage component of your car insurance.
- Recognition as a Safe Driver
It reflects your cautious and disciplined driving.
- Transfer Benefits
You can carry it to your new vehicle or new insurance provider.
- Boosted Savings
Over time, the discounts can significantly reduce your expenses.
Now that you know how valuable NCB in car insurance is, here’s how you can make the most of it.
Smart Strategies to Maximise Your No Claim Bonus
Here’s where smart habits meet big savings. If you’re wondering how to make the most of your No Claim Bonus, these tips will keep your rewards intact and your car insurance costs low.
- Drive Defensively and Avoid Small Mistakes
This one is simple, drive safe and follow traffic rules. Avoiding minor collisions and parking scrapes can help you skip unnecessary claims and retain your NCB.
Try this:
- Maintain a safe distance in traffic, adhering the traffic rules
- Park in well-lit, secure spots
- Don’t rush, patience saves money and your NCB
- Keep your licence and insurance documents updated
- Opt for a Higher Voluntary Deductible
Choosing a higher voluntary deductible means you agree to pay a part of the claim amount. As a result, your premiums may be reduced, and you may avoid claiming small damages that could affect your NCB.
Good to know:
- Suited for experienced drivers
- Ideal if your car is well-maintained
- Helps discourage small, unnecessary claims
- Avoid Raising Claims for Minor Repairs
If the repair cost is lower than your NCB savings, it’s better to pay from your pocket. Small claims can break your NCB cycle and cost more in the long run.
Do the maths:
| Repair Cost | NCB Savings (Year 3 – 35%) | Decision |
| ₹2,000 | ₹3,000 | Don’t Claim |
| ₹6,000 | ₹3,000 | Claim if necessary |
Always compare repair cost vs NCB discount before deciding.
- Protect Your NCB with an Add-On Cover
An NCB protector is an add-on to your car insurance. It allows you to raise a limited number of claims without losing your NCB benefits. It’s especially useful if you drive regularly or live in high-traffic zones.
Why it helps:
- Retains NCB even after 1-2 minor claims
- Adds long-term savings
- Available with comprehensive car insurance plans
- Renew Your Policy on Time
NCB in car insurance is valid only if your policy is renewed before expiry or within the grace period. Delayed renewals can wipe out your NCB history.
Quick tips:
- Set reminders a week before expiry
- Opt for auto-renewal options if available
- Keep your documents and payment modes ready
- Transfer NCB When You Change Your Car or Insurer
Your NCB is linked to you, not the car. When buying a new vehicle or switching your insurance provider, you can transfer the NCB to your new policy. All you need is an NCB certificate from your old insurer.
Steps to transfer:
- Request NCB certificate from old insurer
- Submit it to the new insurer
- Get the adjusted premium with the NCB discount
This ensures that your years of careful driving don’t go to waste.
- Get Regular Servicing and Maintenance
Well-maintained cars are less likely to face issues, reducing the chances of claiming insurance. Schedule periodic checks and fix issues early.
Focus on:
- Tyre checks
- Brake inspections
- Battery and engine maintenance
A little care goes a long way, not just for your car’s health but also for your NCB.
- Understand When to Raise a Claim
If your vehicle has suffered major damage that’s costly to repair, go ahead and claim. But if the damage is manageable and affordable, skipping the claim helps you keep your NCB intact.
When to consider not claiming:
- Scratches or minor dents
- Small part replacement
- Repair cost lower than NCB savings
- Choose the Right Car Insurance Policy
Not all car insurance policies offer the same benefits or flexibility. Pick one that lets you customize your plan, choose useful add-ons, and provide easy NCB transfer.
Look for:
- NCB protector add-on
- Quick online renewals
- Transparent claim process
- Reliable customer service
Your car insurance is more than a piece of paper, it’s a shield, a backup plan, and, with the right steps, a way to save money, too. Taking care of your car and being mindful about when to claim can go a long way in building a strong NCB in car insurance. Think of your NCB as a reward for smart driving and smart decisions.