No Claim Bonus (NCB) is a reward discount given by insurers on the own-damage component of your car insurance premium for maintaining a claim-free year. It starts at 20% for the first claim-free year and increases by 5-10% annually up to a maximum of 50%. However, under standard rules, even a single minor claim will reset your NCB discount back to 0%.
How NCB Protection Add-on Works
By adding an NCB Protection cover to your comprehensive policy, your accumulated discount remains secure even if you file a claim during the year. For example, if you have a 45% NCB and make a claim for a cracked windshield or minor dent repair, your discount will remain at 45% (or transition to 50%) at renewal, saving you thousands on your next premium.
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Key Conditions and Limitations
While NCB Protection is a highly valuable add-on, it has parameters. Most insurers restrict this protection to a maximum of 1 or 2 claims per policy year. If you exceed this limit, the protection lapses and the discount resets to zero. Additionally, the add-on is only valid if you renew your policy within the grace period and do not let it lapse for more than 90 days.
- NCB Protection is highly recommended if you have accumulated an NCB discount of 35% or more.
- Confirm if the add-on allows one or two claims before resetting your bonus.
- Understand that NCB belongs to the policyholder, not the vehicle; you can transfer it when buying a new car.
- Always renew on time, as a lapse of over 90 days wipes out your NCB and invalidates the protection.
