What a No Claim Bonus Car Insurance Actually Is and How It Can Be Protected?

It is said that safe driving can save you huge amounts of money. By this, we refer to the concept of No-Claim Bonus. This is a discount offered by car insurance companies to policyholders for making no claims during the preceding policy term. It is like an award that you receive for driving your car safely without committing any accidents. This benefit can be availed under a comprehensive car insurance policy.

When is this benefit applicable?

The NCB benefit is applicable only if you have a no-claim history in your previous policy years. However, it is important to remember that you will not be able to avail this facility even if you have made a small claim in the previous year. Thus, if you really want to avail this discount, it is mandatory that you refrain from making small claims. In case of minor damages like scratches or dents, it is better to bear the cost of repairing from your pocket. This can help you get huge discounts on your premium in the future policy terms.

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Another factor on which the availability of the NCB depends is timely renewal of your car insurance policy. Your policy must be renewed within 90 days of its expiry. You will not be able to enjoy the NCB benefit if you cross 90 days.

The no-claim bonus is applicable only to any damages caused to you or your vehicle and not on the third party damages premium.

Why pick No-Claim Bonus?

The no-claim feature is not linked to your car but to you and hence this benefit can be transferred even if you change your car and take up a new policy. It can not only be passed on from one insurance company to another but also to a new vehicle from an old one. The only condition here is that you need to sell your old car for a new one and also have accumulated No-claim bonus.

At the time of buying a car insurance policy, as the insurer for a NCB certificate or holding letter which comes with a 3 years guarantee and validity. This certificate will serve as a proof of the No-Claim bonuses that your policy has acquired in the previous years.

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