No claim Bonus / what is no claim bonus   


NCB stands for No Claim Bonus is a kind of reward given by an insurance company to an insured person, for not raising any claim requests during a policy year. NCB discount is offered on the premium amount during renewal with ranging between 20%-50%.

How to calculate NCB? 


Suppose claim request not has been raised by insured person during the first year, he is eligible for No Claim Bonus As you know that it’s applicable from the second year of the policy period. The insurance provider offers you with a discount of 20% on the premium amount that’s called NCB and this can go up to 5 consecutive years. To clearly understand refer the below chart


Chart of No Claim Bonus:


Age of policy

NCB Percentage

After year one of no claim


After two consecutive years of no claim


After three consecutive years of no claim


After four consecutive years of no claim


After five consecutive years of no claim




Suppose you are looking for to buy a new car just make sure you get a No Claim Certificate While buying a new insurance policy for your car In Case if you haven’t had any accident for 5 Years you should tell them you had No Claim Certificate with old insurance company name and with old policy number its will save upto 50% on while buying insurance policy. For every subsequent claim free year, The NCB increased by 10% until it reaches a peak of 50%. That’s why it’s crucial to renew the car insurance to get the benefit of increasing NCB.


Is No Claim Bonus worth it?

Absolutely yes If you have five years' no claims discount, it will significantly cut the cost of your car insurance up to 50 % You could lose all that for just one accident.



Do insurance companies check no claims bonus?


Yes most insurers ask you Regarding NCB within a couple of weeks of giving you a quote.


How long does no claims bonus last without insurance?

Usually lasts for 2 Years


DOES no claims bonus are transferable?



Is there a no claims database?

When you renew your insurance and you want to move to a new motor insurance provider, the NCD Database enables the new insurer to verify your no claims discount directly from the database. Details provided by the database include the number of discount years and whether these are protected, guaranteed or standard.