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 |
20% |
After two consecutive years of no
claim |
25% |
After three consecutive years of no
claim |
35% |
After four consecutive years of no
claim |
45% |
After five consecutive years of no
claim |
50% |
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?
NO
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.