NCB Protector

No Claim Bonus (NCB) is a special discount offered by insurers for not filing any claim during the policy tenure. It keeps accumulating each claim-free year, leading to a reduction in the premium amount at car insurance renewal the following year. However, this NCB is not applicable if the policyholder has already filed a claim.

However, opting for NCB protection provides additional coverage, ensuring the NCB is protected even if the insurer files a claim during the term. In this case, the policyholder falls under the same percentage slab in the following year.

How Does NCB Protector Work?

If there is no claim raised during the policy tenure of your car insurance, you receive rewards with a No Claim Bonus. With Bajaj General Insurance, this bonus starts at 20% and can increase to 50% based on the claim-free years. The NCB discount applies only to the Own Damage (OD) premium component of your policy, not to third-party coverage.

Some of the distinguishing benefits associated with NCB protection in car insurance include:

Nominal Rate of Premium

Insured individuals can purchase NCB Protector cover or pay a small additional premium at the time of their car insurance policy renewal. By paying a small premium during policy renewal, policyholders can avail of a significant discount without worrying about losing it after a claim. Bajaj General Insurance offers an NCB discount of up to 50% on renewal premiums for claim-free years, as per the standard IRDAI-prescribed NCB grid.

Intact Discounts

The discounts Bajaj General Insurance offers during policy renewal are not applicable if the policyholder raises a claim, even once. However, by choosing NCB Protect as an add-on cover, policyholders can eliminate this problem and retain discounts even if a claim is made during the policy term.

Easy Purchase

Purchasing car insurance NCB protection online is a simple and hassle-free process. Moreover, if you missed purchasing the NCB protector while purchasing your policy, you can easily include this add-on while renewing your policy.

How is No Claim Bonus Calculated in Car Insurance?

To understand the NCB protection cover meaning, you need to know how the No Claim Bonus (NCB) is calculated. A comprehensive car insurance plan usually includes:

1. Third-party liability insurance protects you from damage to other people's property.

2. Personal accident insurance protects the owner-driver.

3. Own damage (OD) coverage pays for damage to your own car.

The No Claim Bonus only applies to the part of your premium that covers your own damage. If you do not make a claim during the policy period, you get a renewal discount that gets higher every year you don't make a claim, according to the standard IRDAI-prescribed NCB grid:

Let us go through an example below to better understand the calculation.

Suppose Mr Bimal has a comprehensive policy with a total premium of ₹30,000, where ₹4,000 is for third-party and ₹26,000 is for own damage. If he remains claim-free for 5 years, his 50% NCB will reduce the own-damage premium to ₹13,000.

This example highlights the NCB protection cover, a valuable benefit that rewards safe driving and ensures long-term savings on policy renewals.

When is NCB Protector Cover Not Applicable?

The NCB protection in car insurance is subject to certain limitations and conditions. It is important to understand when this add-on may not apply to ensure you continue receiving your No Claim Bonus (NCB) benefits.

The NCB Protector coverage is not applicable under the following circumstances as per Bajaj’s motor insurance policy:

1. If the insured person makes more claims than the NCB Protector allows during the policy period.

2. If someone else buys the insured car, the policy will be cancelled.

3. The NCB that has built up over time becomes useless if the car insurance policy is not renewed within 90 days of its expiration.

4. Most of the time, insurers do not let you add or remove the NCB Protector add-on in the middle of a policy. You can only choose it when you buy or renew the policy.

Policyholders can ensure they continue to receive the benefits of their NCB Protection Cover by remembering these points. They can also avoid losing the bonus they have built up because of technical or procedural mistakes.

Who is Eligible to Get NCB Protection Cover?

The main eligibility criteria that a policyholder needs to fulfil for getting NCB Protector cover are that individuals with a valid comprehensive or standalone own damage car insurance policy can opt for the NCB Protector add-on.

What are the Documents Required for the Transfer of NCB?

Keep the following documents ready for easy transfer of NCB:

1. RC book copy for both the old and new car

2. NCB certificate obtained from the previous insurer

3. A valid ID proof (if needed)

Any other documents might also be asked for by your insurer at the time of transfer, so try to keep most of your documents handy during the process.

Purchasing NCB protection cover from Bajaj General Insurance is a simple, hassle-free process if you follow the steps discussed below:

Step 1: Download the Caringly Yours App from the App Store or Google Play Store, or click on “Get Quote” on our Motor Insurance product page.

Step 2: You need to sign up for or log in to your Bajaj General Insurance account.

Step 3: Enter the model and registration number of your vehicle, and you will be taken to the Motor Insurance page.

Step 4: Choose your Insured Declared Value (IDV) based on how much your car is worth on the open market right now.

Step 5: Pick the comprehensive insurance policy options and customise as per your needs.

Step 6: Choose the No Claim Bonus add-on to your comprehensive insurance policy

Step 7: Before you go ahead, double-check the premium amount and coverage details.

Step 8: Complete payment using your preferred payment method.

Lastly, you will get an email and text message right away confirming your purchase or renewal of your policy.

A No Claim Bonus (NCB) gets cancelled under the following conditions:

1. If there is any claim filed

2. If there is a lapse of the policy beyond 90 days after the date of expiry

3. Under misinterpretation or fraud cases

4. Switching to any third-party policy

5. Choosing to sell your car without NCB transfer

Things to Keep in Mind While Opting for No Claim Bonus (NCB) Protector

Here are the top things to keep in mind while you opt for the No Claim Bonus Protector for your car insurance from Bajaj General Insurance:

1. If you drive without making any claims, NCB will lower the Own Damage (OD) premium on your car insurance policy and give you discounts when you renew.

2. You can transfer your NCB. If you sell your old car and buy a new one, the bonus you earned can be added to the new policy.

3. The third-party premium part does not include NCB because it is based solely on the own-damage part.

4. When you renew or switch insurance companies, always tell them the truth about your NCB. Providing incorrect NCB information could result in your claim being denied or your policy being cancelled.

You can make sure that your NCB benefits stay the same and keep saving you money on your car insurance renewal by remembering these simple things.