What is NCB in Insurance

When you buy a new car, you spend a lot of money on insurance. But in the future you can significantly reduce this cost. No claim bonus is the best way to reduce insurance premium. You may know about it, but today we will tell many such things about it which people often do not know. We will tell you in Hindi what is this ‘No Claim Bonus’? (what is NCB in insurance in hindi?) How does it work? What are its rules? How can it be beneficial for you? We are giving information about all these here. No Claim Bonus

NCB full form in hindi= No Claim Bonus | No Claim bonus
NCB meaning in hindi=additional benefit of claimless policy
Full article at a glance

What is No Claim Bonus? No claim bonus kya hota hai
During the previous insurance policy, if you have not made any insurance claim, in return, the insurance company gives you a discount in the premium (insurance charges) of the next insurance policy. This is called No Claim Bonus.

Suppose you got your car insured on January 1, 2020. You have preserved your vehicle and have not claimed any damages. In such a situation, when you go to get insurance again in January 2021, then you will get a discount. This discount is called No Claim Bonus.

If you do not claim even for the next one year, then the discount in the next policy will be more. This means that the longer the non-claim period, the higher will be the benefit. That is, you will have to pay the same percentage less as the new premium. The percentage of exemption from No Claim Bonus on the basis of the claim-free period is as follows-

Continuing non-claiming period (in years) exemption
1 25%
2 25%
3 35%
4 45%
5 or more 50%

Let’s understand this with an example. An Example
Let’s say the market value (IDV (Insured Declared Value)) of your car is estimated at Rs.5 lakh. To get its insurance, you have to pay a premium of Rs.16000.

Now let’s assume that you have not made any claim for the last two years. So you will get the benefit of Nom Claim bonus of 2 years and should get 25 percent discount on new premium.

25% of 16000 is Rs.4000. That is, after deducting 4000 rupees out of 16000 of the total cost of premium, you will have to pay only 12000 rupees.

Cannot get more than 50 percent discount: No claim bonus can range from 20 percent to 50 percent, depending on the term of the previous insurance policy. But, it cannot exceed 50 per cent at any cost. Even if you have passed without claim for 6 or more years.

Bonus benefit is over as soon as it is claimed: During the new policy, if any claim is made, the No Claim Bonus lapses for the subsequent policy term. But, if you have not made a claim during any subsequent year, then in the period after that, you can take advantage of No Claim Bonus.

What is No Claim Bonus Protection Add-on?
What is No Claim Bonus Protection cover
It is an insurance add-on or rider, which can be purchased as an auxiliary insurance cover, along with comprehensive insurance.

If you have added No Claim Bonus addon in your insurance policy, then during the policy, you will get the benefit of No Claim Bonus even after making 1 claim. You will get a rebate in the premium of the subsequent insurance policy in the same way as you would have got a discount if you did not claim it.

Thus this Add On secures your right to No Claim Bonus. That is why it is known as No Claim Bonus Protector or No Claim Bonus Protection Cover.

You may have to pay an additional 5 to 10 percent of your main insurance premium for a no claim bonus.

Other useful information on NCB Protector
Before taking No Claim Bonus Protection Cover with your insurance policy, you should also know some of the following important things-

Benefit will be available only on 1 claim in a year
Taking No Claim Bonus Protection Cover does not mean that you will be able to get the benefit of No Claim Bonus by making any number of claims. You can avail this benefit for only one Own Damage (OD) claim during a policy year. Within the same year, as soon as you make another claim, the work of your No Claim Bonus Protection Cover ends.

No benefit if not renewed within 90 days
If the insurance policy of your vehicle has expired, then definitely get it renewed within 90 days, otherwise you will not be able to get the benefit of No Claim Bonus on the basis of the previous policy.

No claim bonus does not end on changing insurance company
While renewing your vehicle insurance, you will get the benefit of No Claim Bonus facility even if you change the insurance company. For this you have to submit proof that you have not filed any claim on the expiring policy. You can give this proof in two ways-

Submit No Claim Bonus renewal notice from new insurance company
Present a No Claim Bonus confirmation letter from the old insurer
No claim bonus cannot be transferred to another person
No claim bonus is associated with the individual, not the vehicle. When the vehicle is sold, the new owner is not entitled to a no claim bonus. Whereas, he will get the benefits of the insurance policy. If the old owner buys a new vehicle, then

, he will get the benefit of no claim bonus.

Cannot get only by taking third party insurance
You get the benefit of No Claim Bonus only in the claim on Own Damage cover. And this Own Damage cover can be available only with Comprehensive Insurance.

Since, the benefit of own damage cover is not available with third party insurance. Hence No Claim Bonus Protection cover add-on cannot be found even with third party insurance.

If you had taken Comprehensive Insurance earlier, and are taking only Third Party Insurance in the new policy, then you cannot get No Claim Bonus Protector.

However, it has nothing to do with any other Add Ons (Accident Cover, Zero Depreciation Cover, etc.) attached to your policy. Even after leaving them, you can take No Claim Bonus Protector.

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