How Does NCB Work in Car Insurance?

 

NCB is the acronym for No Claim Bonus which is commonly used in the insurance sector. This term is favourable for the customers, as in this case the customer is offered some kind of discount. The NCB is generally offered to own damage policy. This is not a third-party insurance discount. The norms for NCB are governed by the IRDA.

Car insurance is a silver bullet for the problems that can affect you from natural or man-made peril. This brings you financial or legal aid in case of any unpleasant event. Car insurance is mostly used for accidental causes, as this can be devastating for the vehicle. 

Different Slabs for NCB Rates 

The offered NCB varies from year to year. This is not a fixed discount which is offered to the customers every year. Let us have a look at the different types of slabs offered by insurance companies in order of NCB in Own damage policy. 

 

Years of
no Claim

NCB
 (%)

1 year

20%

2 years

25%

3 years

35%

4 years

45%

5 and more years

50%

 

Special Points to Remember in NCB

  1. An insured is only applicable to take benefit of NCB when the has not filed any claim in the last years. 
  2. The NCB is transferable from one owner to another owner only when it is in blood relation. 
  3. NCB is only offered for own damage policy. 
  4. This is applicable to all types of vehicles. 
  5. The percent for NCB does not depend on the company, it is fixed by the IRDA. 
  6. The percentage is fixed by IRDA, but the actual amount may vary from company to company.

    For More Information:-     online car insurance payment 

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