What is No Claim Bonus (NCB) and when do you get it?

By | March 27, 2018

All about No Claim Bonus (NCB) Certificate, Percentage Calculation, and Transfer Rules

No claim bonus is a reward given to the insurer by the insurance company. If during the insurance period a person does not take any claim in a given year/ policy term, then company decides to reward the insurer next year.

This reward is given either by increasing the insurance cover or by reducing the premium. This is NO Claim Bonus.

ncb insurance calculationNo claim bonus (NCB) is given in motor vehicle and health insurance. But to give away no claim bonus companies have their rules.

Usually, the motor insurance company gives no claim bonus if one renews the policy within 90 days. On the other hand, the health insurance company gives a bonus on the renewal of policy within 30 to 60 days, depending upon the policy of the company.

No claim bonus can be aggregated over years. NCB is given to the insurer even if he changes his vehicle as it can be transferred too.

NCB is even terminated if the claim is made in the given year. Also as mentioned earlier, if the policy is not renewed in 90 days or as decided by the company, the NCB is canceled.

If the insurance holder is same then NCB can be transferred from one vehicle to another. It is even transferable to another insurer.

Commercial vehicles do not give chance for NCB but if a person has insured the vehicle for social and delight purpose, one stands a chance to get No claim bonus.

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