No Claim Bonus (NCB) is a benefit to the vehicle owner for rational use of his vehicle by which helping the owner to progressively reduce the premium amount. The policy holder is entitled for a NCB if no claim is made or pending during the preceding year of the policy.
This discount in the premium is considered 20% for the preceding year, 25% for preceding consecutive two years, 35% for preceding consecutive three years, 45% for preceding consecutive four years and 50% for preceding consecutive five years. NCB is only allowed provided the policy is renewed within 90 days of the expiry date of the previous policy.
Besides discount in premium, the insured can save on the first premium of a new vehicle bought in, as the NCB is linked to the insured and not the vehicle. For instance, the insured sells his old sedan and purchases a new car of same segment the NCB will pass on to the new vehicle.
Happy Saving!!
