How to Check NCB Online Now: Track Your Car Insurance Discount after 5 Years of NCB?

As a car owner, you must know about the compulsory requirement to have an insurance cover, besides the registration and PUC for your vehicle. This regulation laid down by the Motor Vehicles Act makes it a legal requirement for not just car owners, but all types of vehicle owners in India, whether privately owned or for commercial purposes. When you buy car insurance online, the policies are divided into two broad categories: third-party cover and comprehensive insurance cover.

But other than offering a financial shield for damages to your vehicle, a comprehensive policy offers other benefits like the No-Claim Bonus (NCB). It is a renewal benefit that the insurer offers for not raising an insurance claim.

Since the insurance company does not need to provide any compensation when claims aren't made, this renewal benefit is awarded to the policyholder. Thus, by not making a claim, you can avail of a concession in your renewal premium.

What is a No Claim Bonus (NCB)?

A No Claim Bonus (NCB) is a discount that insurers offer policyholders for not filing any claims during the policy period. It accumulates over time and can provide significant savings on your insurance premium.

The more years you drive claim-free, the higher your NCB, which can be as much as 50% after five consecutive years of no claims. However, it’s important to note that the NCB applies only to the own damage component of your policy, not the third-party liability coverage.

When Does the No Claim Bonus Get Cancelled?

The No Claim Bonus feature can be cancelled or lost if:

1. You file a claim during the policy term. Once a claim is made, the NCB is not applicable during the next renewal.

2. You fail to renew the policy before its expiry, which could result in the loss of the NCB.

3. If the car is sold or transferred to someone else, and the policyholder does not maintain the vehicle ownership or continuity of the policy.

What are the Benefits of a No-Claim Bonus?

1. Reduced Renewal Premiums – Enjoy lower premiums during policy renewal after maintaining a claim-free record.

2. Cost Savings Over Time – The discount accumulates each claim-free year, leading to significant financial savings in the long run.

3. Incentive for Safe Driving – Encourages cautious driving habits by rewarding accident-free years.

4. Increased Policy Value – A higher bonus may improve the overall value and attractiveness of your insurance policy.

5. Competitive Advantage – A strong No Claim Bonus can offer better bargaining power when switching insurers or renewing policies.

What are the Terms and Conditions of a No Claim Bonus?

While the No Claim Bonus is an attractive feature, it comes with specific terms and conditions, mentioned below:

1. An NCB is attached to the policyholder, not the vehicle, meaning it can be transferred if you buy a new car.

2. If you make even a single claim during the policy period, you will forfeit the NCB for that year. However, if you have an NCB add-on, you can protect your accumulated bonus despite making a claim.

How Can You Protect Your No-Claim Bonus?

One of the best ways to protect your No Claim Bonus is to drive responsibly and avoid making unnecessary claims. Opting for an NCB Add-on ensures that minor damages don’t affect your accumulated bonus. Additionally, consider paying for minor repairs out of pocket instead of claiming insurance. By maintaining a claim-free history, you can enjoy a considerable discount on your insurance premiums.

How to Calculate No Claim Bonus in Car Insurance?

Are you thinking: How much discount can you get on insurance premiums for no-claim years?

Your insurer rewards you when you don’t raise any claim during the policy year. This reward is called No Claim Bonus or NCB. It gives you a discount only on the own-damage premium, not on third-party premium or taxes.

NCB starts at 20% after your first claim-free year. It goes up each year you avoid claims: 25% in year 2, 35% in year 3, 45% in year 4, and stops at 50% from year 5 onward. One claim will reset your NCB to zero. You can check your exact savings with NCB in car insurance calculator online.

NCB Calculation Table: Claim-Free Years vs Discount Percentage

For First Claim-Free Year

Suppose your car’s own-damage premium is ₹15,000. You drove safely and filed no claims.

NCB rate after 1 year = 20%

NCB amount = 20% of ₹15,000 = ₹15,000 × 0.20 = ₹3,000

Renewal premium = ₹15,000 − ₹3,000 = ₹12,000

You save ₹3,000 that year.

After 5 Claim-Free Years

You keep driving without claims for 5 years straight. Your NCB hits the maximum 50%.

Own-damage premium = ₹15,000

NCB amount = 50% of ₹15,000 = ₹15,000 × 0.50 = ₹7,500

Renewal premium = ₹15,000 − ₹7,500 = ₹7,500

So, adding NCB benefit in car insurance renewal since you save ₹7,500 in year 5 alone.  If you stayed claim-free each year, your NCB would grow from 20% to 50%. Over 5 years, that adds up to big savings compared to paying full ₹15,000 every year.

How to Check No-Claim Bonus Status Online?

Step 1: Go to the Insurance Page 

Visit the Bajaj General Insurance website or download the mobile application and open the motor insurance page.

Step 2: Log in with Credentials

Log in with your registered mobile number or customer ID.

Step 3: Check Your Policy Details

Click "My Policies" or "Manage Policy" to see your car or bike policy.

Step 4: Read Policy Documents

Download your latest policy PDF. Find your NCB percentage under the Own Damage Premium section.

However, you can also start your renewal online. The screen will display your current NCB discount before you pay.

How to Transfer the NCB to a New Car?

Planning to transfer your bonus points to new insurer! But how to transfer NCB?

If you are purchasing a new vehicle, transferring your No Claim Bonus from your old car is simple. Since the NCB is linked to you as a policyholder, not your vehicle, the bonus can be carried over to your new insurance policy. For example, if you’ve been enjoying Maruti Suzuki car insurance benefits with an accumulated NCB, you can transfer it when you upgrade to a new car.

How to Maximise Your No Claim Bonus?

Maximising your No Claim Bonus involves several strategies, such as:

1. Drive carefully and responsibly to avoid accidents and minimise the need to file claims.

2. Consider purchasing an NCB Add-on to protect your bonus in case of minor accidents.

3. Think twice before making small claims. Sometimes, it's more cost-effective to pay for minor repairs out of pocket and preserve your NCB for larger savings on your next car insurance renewal.

Common Mistakes in NCB Calculation

One common mistake while calculating No Claim Bonus is thinking that it only applies to the own damage section of your insurance, whereas it doesn't. Another mistake is assuming that making a small claim won’t affect the NCB. Unless you have the NCB Add-on, any claim will reset your accumulated bonus. Ensure that you accurately understand the terms of your NCB to maximise its benefits.

Aspects of No Claim Bonus (NCB) That You Need to Be Aware Of

1. NCB Reduces OD Premium

The No Claim Bonus can reduce the Own Damage (OD) premium for your car insurance. However, the maximum discount you can receive is 50%, and this is only possible after driving claim-free for five consecutive years. After reaching this limit, even if you continue to remain claim-free, you will not be eligible for an NCB higher than 50%.

2. NCB Can Be Transferred to Your New Car

The No Claim Bonus is personal and not linked to your car. This means that if you buy a new car, you can transfer your existing NCB to the new vehicle. However, the new car must fall under the same vehicle class as the one on which the NCB was earned. Additionally, NCB can only be transferred to another person in the event of the car owner's death, provided the vehicle is handed over to a legal heir. The NCB must be transferred to the legal heir within 90 days.

3. NCB Does Not Apply to Third-Party Premium

The No Claim Bonus is not applicable to the third-party insurance premium. It only reduces the premium on your Own Damage (OD) cover. Therefore, when calculating your NCB, remember it is applicable only on the OD portion of the premium, not on the third-party liability portion.

4. Incorrect NCB Declaration Can Lead to Claim Rejection

Declaring an incorrect NCB can lead to serious consequences, including the rejection of your future insurance claims. Always ensure that the NCB details you provide are accurate, as a wrong declaration can invalidate your coverage or lead to legal complications.

Conclusion

In conclusion, understanding and utilising the No Claim Bonus effectively can result in substantial savings on your car insurance premiums. By driving responsibly, avoiding unnecessary claims, and protecting your bonus with an NCB Add-on, you can maximise this benefit during your car insurance renewal. Whether insuring a Maruti Suzuki or any other vehicle, the NCB plays a vital role in reducing your overall insurance costs. For more information on how to calculate and protect your NCB, visit the official website of Bajaj General Insurance Limited.

FAQs

What is the maximum NCB on car insurance?

The maximum No Claim Bonus (NCB) on car insurance is typically 50%, offered after five consecutive claim-free years.

How much is the No Claim Bonus, and how to calculate NCB insurance?

The NCB starts at 20% after the first claim-free year and increases to a maximum of 50% after five years. To calculate, multiply the own damage premium by the applicable NCB percentage.

How does No Claim Bonus impact my insurance premium?

The No Claim Bonus reduces the own damage section of your insurance premium, resulting in lower overall insurance costs.

Can I transfer my No Claim Bonus to a new insurance provider?

Yes, you can transfer your NCB to a new insurance provider during your car insurance renewal by providing an NCB certificate from your previous insurer.

*Standard T&C apply. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.