Managing car expenses can feel tricky, but knowing your motor insurance details makes a big difference. One of the most useful features is the No Claim Bonus (NCB). This tool can save you money when you’re preparing to renew your insurance. Vehicle owners who focus on their next motor insurance renewal will find the NCB helpful.
Plenty of people miss out because they don’t realize what it does or how it matters when they renew their car insurance online. This post explains the No Claim Bonus in simple terms, shows its value, and offers tips to think about as you approach your next insurance renewal.
What Does No Claim Bonus (NCB) Mean?
The No Claim Bonus gives policyholders a discount when they do not file any claims during their insurance term. Insurers use it as a way to reward safe drivers. The discount applies to the premium at the time of motor insurance renewal and can help car owners reduce costs over time.
In India, NCB discounts follow this structure:
- 20% after staying claim-free for 1 year
- 25% after going 2 straight years without a claim
- 35% following 3 continuous claim-free years
- 45% after maintaining 4 straight claim-free years
- 50% once you complete 5 claim-free years in a row
Once you hit the 50% cap, it stays in place as long as you keep a record without any claims.
How Does NCB Impact Your Car Insurance Premium?
NCB applies to the own damage (OD) part of your car insurance premium and not to third-party liability. This might seem like a smaller part, but over time, it can make a big difference—for vehicles in the mid-to-high price range.
Take this example: if your OD premium is ₹10,000 and your NCB has reached 50%, you’ll get a ₹5,000 discount when you renew your car insurance online. It’s a good chunk of savings that rewards careful and responsible driving.
When Do You Lose Your No Claim Bonus?
The no-claim bonus belongs to you, not your vehicle, but there are situations where you might lose it:
- Making a claim during the policy term even for small damages, can cancel out your NCB.
- Failing to renew the policy on time. If you let the grace period 90 days after the due date, pass without renewing, your NCB vanishes.
- Selling your car without transferring the NCB certificate to a new policy within the allowed window also makes you lose it.
Your NCB sticks with you, but it takes effort to keep it. It’s clear why renewing your motor insurance on time matters. It keeps you within the law, offers uninterrupted coverage, and helps you hold on to the NCB discounts you’ve worked hard to earn.
Keeping Your NCB When Renewing Online
A lot of people believe that changing insurers means losing their NCB. That’s not the case. You can move to a different insurance company during renewal and still keep your NCB. To do this, you need an NCB certificate from your current insurer, which you give to the new one.
With everything going digital, many platforms now make this step easy. You can manage it through online car insurance renewal, and switching over becomes simple.
Should You Skip Filing Small Claims to Keep Your NCB?
People often face this question. Let’s say your repair bill is ₹2,000, but your NCB discount at renewal is ₹4,000. Covering the repair yourself seems like a smarter choice to save more later. You could see it as planning ahead to save money in the long run.
This doesn’t mean never filing claims. It’s about choosing when the expenses are minor and manageable.
Is the NCB Protection Add-on a Good Idea?
Certain insurers provide an NCB Protection Add-on that lets you file a limited number of claims without sacrificing your bonus. This can prove useful if:
- You’ve accumulated a significant NCB over time
- You stay in a crowded area where accidents are more likely
- You own a high-end car that costs a lot to repair
Keep in mind this feature might raise your premium so it is important to assess your needs before choosing it.
Importance of Renewing on Time
If you wait more than 90 days after your policy expires to renew it, your NCB drops back to zero. It doesn’t matter if you’ve never filed a claim before. This is why renewing motor insurance on time matters a lot. Delays aren’t just about following rules—they can also wipe out the benefits you’ve earned for safe driving.
However, renewing your car insurance online has made the process much simpler than before. You can set reminders, organise your documents in advance, and finish everything with a few quick steps.
Why Pick Chola MS Motor Insurance to Renew Your Policy?
If you want secure and hassle-free renewals, Chola MS Motor Insurance puts its customers first. They make the process easier with a user-friendly digital platform, helping both new and experienced car owners renew their policies online without any trouble.
They offer fair premiums, clear NCB tracking, and extras like NCB Protection to help you choose better options. If you decide to switch vehicles, Chola MS ensures transferring your NCB is fast and simple. This way, you can hold on to the benefits you’ve earned over time.
Final Thoughts
Being informed can help when it comes to renewing motor insurance. Knowing how NCB works lets you save money, stay protected, and get benefits for driving responsibly.
With reliable providers like Chola MS Motor Insurance, handling renewals, checking your NCB, or even changing policies becomes easier. Whether it’s your first or fifth renewal, knowing what to expect helps you get the most out of your car insurance experience.
FAQs
Q1. Can I transfer my NCB to a different car?
Yes, NCB connects to the policyholder rather than the car. You can move your bonus to a different car by letting your insurer know at the time of renewal.
Q2. What happens if I forget to renew my policy?
If you miss the 90-day grace period after your policy expires, you lose the NCB, and your vehicle might need an inspection to issue a new policy.
Q3. Is No Claim Bonus available on third-party insurance?
No, NCB applies to the own-damage part of a comprehensive insurance policy. It does not apply to third-party insurance.
Q4. Can I get NCB if I switch insurers?
Yes. You just need to get an NCB certificate from your previous insurance provider and show it while renewing with your new insurer.
