NCB is an abbreviation of No Claim Bonus. It is a reward given to the policyholder by the insurer for not making a claim in the preceding years. The reward is in the form of a discount on premium payable which ranges from 20% to 50%.
NCB Rate Grid
|After 1 claim free year||20%|
|After 2 consecutive claim free year||25%|
|After 3 consecutive claim free year||35%|
|After 4 consecutive claim free year||45%|
|After 5 consecutive claim free year||50%|
NCB can be claimed on the first renewal of the policy on the condition that there was no claim made in the past year. On the first-year renewal, you can claim a discount on the premium payable by 20% which will gradually increase with every claim free year up to a maximum of 50% at the end of five claim free years.
NCB reward is attached to the policyholder and not the car. This means you get to retain your NCB if you sell your car and buy a new one or if you want to switch to another insurer at the time of renewal of the policy.