How to calculate NCB for car insurance policy

In India motor insurance is mandatory by law to ensure if any third-party accidental damages liability arises affected person will be able to get compensation by your insurer under third party insurance policy however it is always advisable that you should buy a comprehensive policy which cover damages caused to your vehicle that’s where the no claim bonus comes in to the picture whenever you are opting for a comprehensive insurance policy for your vehicle.

No Claim Bonus (NCB)

No claim bonus in car insurance is like a reward for the customers who are using their vehicles prudently and drive carefully it shows good driving habit of a customer. It allows the customer to avail an additional discount on the premiums while purchasing a comprehensive insurance policy from insurance company if customer have not claimed in last year insurance policy no claim bonus % increases with every claim free year and goes up to 50% maximum.

However, no claim bonus discount is applicable only on own damage premium of the policy and not on the third-party liability insurance premium.

Number of years without making claim NCB Slabs % on OD premium
1st Year 20%
2nd Year 25%
3rd Year 35%
4th Year 45%
5th Year 50%
If claim taken in last year policy 0%


No claim bonus % depends on when you last claimed in your insurance policy and it starts from 0% again if taken claim in any policy year.

Please remember no claim bonus is not applicable in following scenarios.


  • If you have taken claim in last year policy.
  • Your policy expired before 90 days.
  • If it is a third part policy.
  • There is an ownership transfer.

You can continue to enjoy your no claim bonus benefit even if your changing your insurer means you are renewing your policy with a new insurer.

You can transfer your existing no claim bonus on your new vehicle insurance policy if you want for that you must request for no claim bonus certificate from your existing insurer and need to submit the same to your new insurer as a proof of no claim bonus.

Documents required for no claim bonus certificate issuance

  • Your old vehicle sale proof generally forms 29 and 30.
  • Your request letter for issuance of NCB certificate.
  • Copy of new vehicle invoice.
  • Your existing policy documents.

To keep your no claim bonus intact it is important you skip making minor claims and pay by your own pocket for small repairs to have NCB benefits to save money while purchasing new insurance policy.

No claim bonus is an addon?

No, it’s not an add on cover every insured who is opting for comprehensive policy is eligible for no claim bonus benefit.

Does this differ insurer to insurer?

No, it’s defined under motor insurance guidelines and followed by every insurer hence it will be same for any insurer.

Is it applicable on new car?

No, if you are purchasing a new vehicle that will be 0% NCB year and you will get NCB benefit on your 1st renewal if not claimed however if you have any NCB certificate you can transfer the same to your new vehicle insurance policy.

Car Insurance plans on Finserv MARKETS offer NCB benefit up to 50% along with many other benefits like cashless claims, quick policy issuance and more that let your rest assured for all your drives.

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