NCB or No Claim Bonus is an entitlement for Car Insurance customers of all car insurance companies. It is a mandate as regulated by IRDAI and is a step towards motivating car drivers to safe guard their car against accidental damages and safe driving.
  • A No Claim Bonus (NCB) has to be earned only in the Own Damage section of Car Insurance Policies
  • No Claim Bonus is provided for all classes of vehicles other than Motor Trade Policies
  • This bonus facility is to be allowed only when the car/ vehicle remains insured continuously for a period of 12 months without any break
  • No Claim Bonus will be allowed only when the car insurance policy is renewed within 89 days of the expiry of previous policy
  • No Claim Bonus, wherever applicable, will be as per the following table

Period of Insurance% of NCB on OD premium
The previous year20 %
Previous Two consecutive years25%
Previous Three consecutive years35%
Previous Four consecutive years45%
Previous Five consecutive years50%

  • The entitlement of No Claim Bonus is based on the fortune of the original insured and not the vehicle or the policy
  • In the event of transfer / sale of vehicle and subsequent transfer of policy, the NCB - No Claim Bonus amount will be recovered from the buyer of the vehicle before affecting the transfer of policy. (Unless transferee is entitled to a lesser or higher percentage of NCB than that existing in the policy)
  • If the transferee is entitled to a lesser or higher percentage of NCB than that existing in the policy, then evidence of the same must be submitted at the time of transfer of the policy by way of letter from previous insurer
  • In case of death of the insured who is an individual, on his death the custody and use of the vehicle pass to his spouse and/or children and/or parents, the NCB entitlement of the original insured will pass on to such person/s to whom the custody and use of the vehicle pass
  • The NCB earned on a vehicle owned by an institution during the period when it was allotted to and exclusively operated by an employee will be passed on to the employee if the ownership of the vehicle is transferred in the name of the employee based on submission of suitable letter from the employer

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