What is NCB and how to claim it?


Investing in a car can be expensive but who doesn’t enjoy car rides? You would want them to be smooth and enjoyable, but what if an unforeseen event takes place? The damages caused can put a hole in your pocket. 

Car insurance helps you protect your vehiclefrom accidents and injuries caused toa third-party as well as yourself.But when you select a car insurance policy, make sure you choose one that best suits your needs. People avoid insuring their vehicles fearing‘high’ premiums. Comparing various plans online might help as you might come across a suitable one being offered at affordable prices. Also, if you don’t file a single claim during your policy term, you get the benefit of No-Claim Bonus (NCB).

What isNCB?

Insurers offer a specific reward or bonus to you for not making anyclaims during the policy term. Such reward is termed asthe No-Claim Bonus (NCB). Itis basically a concession you receive on the premium amount and can be accumulated for maximum five years. It is easily transferable even if you change your vehicle as the NCB belongs to you and not your car. 

In simple words, even ifyou switch to a different insurance company, you can still use the accumulated NCB from your previous policy. However, you cannot enjoy the benefit ofNCB if you have a third-party car insurance. You need to have a comprehensive policy for the same. The maximum concession received is up to 50%. These concessions will help you decrease your premium amount during car insurance renewal

If there is a gap in your years of raising claims, then you cannot avail NCB asit needs to be subsequent. People assume that raising small claims won’t affect their NCB, which is not true;every claim counts. It is also important that you renew your car insurance policy from time to time. In case you don’t do so even during the waiting period, then you will lose your accumulated NCB completely. 

NCB Claim Process 

Claiming NCB is simple and hassle-free. You will need to inform your insurance provider that you haven’t made any claims in your previous policy term. You will receive a proof of NCB from your insurer. The same will be sent to you by an email. In case you’re planning on switching your insurance provider, you must receive a proof of NCB through a certificate from your current insurer. This entire verification can be done online.

NCB is of great significance; therefore, try your best to protect it. Minor damages such as car dents caused in a small accident can easily be paid by you. The cost of getting a dent fixed won’t cost you much, at least not at the cost of losing your NCB benefit.

It can get tempting to raise a claim every time your car goes through a minor damage. You must essentially carry out a cost-benefit analysis before doing the same for your benefit.

If you’re buying the policy online, your NCB will be transferred based on your declaration and you need not submit the certificate. But that doesn’t mean you can hide any claims made by you earlier. There’s a possibility that your new insurance provider cross-checks the information with your previous insurer. 

The most important thing to do would be to select a good car insurance policy that provides wide coverage at affordable rates. To avail such a cover, you can first calculate the premium of various policies online using the car insurance premium calculator and avail the best deal available.