In India, the quantity of four-wheeler vehicles is multiplying. However, before you acquire a car in India, you must be aware that third-party motor vehicle insurance is mandatory in India. Hence, you must purchase it at the time of buying your car. You can also opt for the optional comprehensive car insurance package. While its premium may be slightly higher, you may be happy to know that most car insurance mobile app providers offer No Claim Bonus (NCB) benefits to policyholders. *
Now, most Indians are oblivious to what No Claim Bonus is or what NCB stands for. Therefore, we’re here to answer a frequently asked question. If you’ve had a claim-free year, you are eligible for a no-claim bonus (NCB) benefit. This typically functions as a concession on your motor insurance premium at the time of renewal. However, if your insurance policy has lapsed, the insurance company may conduct a pre-acceptance inspection by the guidelines before issuing you a new approach.*
Some companies offer self-inspection privileges; you can also purchase insurance online after the inspection.
You will be interested to learn that claiming the NCB benefit is optional. Still, you can accumulate your NCB over time, and dependent on the number of claim-free years, you will be eligible for a 20% to 50% premium concession. You should know that NCB only applies to your policy’s damage (OD) premium, not the third-party (TP) premium.*
How Does NCB in Car Insurance Work?
It functions like a rewards system. You may likely receive a 20% NCB concession if you’ve not filed a claim during the first policy year. As a result, you continue to gain an additional percentage after your second consecutive year with no claims. This can result in a maximum of 50 per cent reduction in successive years. In short, the better driver you are, the better off you might be over the long term. It also helps to pay car insurance renewal premiums on time to ensure the NCB stays consistent. In terms of validity, NCB will be forfeited in case of a motor insurance claim; however, many insurers now offer an NCB protection add-on cover that allows you to keep your NCB even after filing claims; the number of claims covered by this add-on cover can vary from insurer to insurer.*
You should use the car insurance mobile app immediately and retain the accumulated NCB benefits. This is also an ideal time to decide whether or not you want to purchase add-ons or additional car covers for added protection.*
No Claim Bonus Calculator
The following substantial question is: how much is the no-claim bonus after comprehending what an NCB policy is in insurance terms? Calculating your vehicle’s No-Claim Bonus is straightforward. Many insurance companies provide a No Claim Bonus Calculator on their sites to help you determine your No Claim Bonus amount. Typically, the same begins in the second year of your policy.
The percentage of the No Claim Bonus for any four-wheeler is typically computed using four wheeler insurance premium calculator.*
Get insured anytime, anywhere! Check out the Bajaj Allianz General Insurance website to learn more and download the app now.
*Standard T&C Apply
‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘
