Your No Claim Bonus (NCB) is one of the easiest ways to save money on your car insurance renewal, yet most car owners in Hyderabad forget or lose it when switching insurers.
This guide explains what NCB really is, how it’s calculated, how to transfer it across insurers, and what mistakes to avoid during renewal.
Whether you’ve had a spotless claim record or switched vehicles recently, your NCB can reduce your next premium by up to 50%.
By the end of this article, you’ll know exactly how to retain your bonus and use it strategically for long-term savings, no matter which insurer or car you choose next.
What Is NCB In Car Insurance
NCB (No Claim Bonus) is a reward given by your insurer for not filing any claim during the policy period.
It applies to the Own Damage (OD) portion of your premium and increases each year you drive claim-free.
Standard NCB slab used by all insurers:
| Claim-Free Years |
NCB Discount (%) |
| 1 year |
20% |
| 2 years |
25% |
| 3 years |
35% |
| 4 years |
45% |
| 5 years+ |
50% (maximum) |
Example:
If your OD premium is ₹10,000 and you’ve been claim-free for 5 years, you’ll get a ₹5,000 discount at renewal, a direct 50% saving.
How To Keep Your NCB While Switching Insurers
- Ask for an NCB certificate from your old insurer after policy expiry or cancellation.
- Provide the certificate to your new insurer during renewal, digitally or via upload.
- NCB validation is done via the IRDAI’s shared database.
- Discount applied automatically once verified.
- NCB continuity works even if you change car, city, or insurer, as long as you stay claim-free.
NCB Rules To Remember
- NCB belongs to the policyholder, not the vehicle.
- Valid even after selling your car, transferable to the next vehicle.
- Remains valid for up to 3 years from last active policy.
- Reset to 0% if you file any claim (unless you have NCB Protect add-on).
- Can be carried to any IRDAI-registered insurer.
Common Reasons People Lose NCB
- Filing small claims (under ₹2,000 - ₹3,000).
- Forgetting to ask for an NCB certificate after switching.
- Renewing after 90 days of policy lapse.
- Buying a new car without transferring existing NCB.
- Entering incorrect details during renewal (mismatch between RC and policyholder name).
NCB Protect Add-On, A Must-Have
What it does: Keeps your NCB intact even after one minor claim.
When it’s useful:
- For cars less than 5 years old.
- In accident-prone or high-traffic areas like Hyderabad.
- When you want to file small claims but retain your bonus.
Example:
Without NCB Protect → One claim resets bonus from 50% → 0%.
With NCB Protect → You file a claim but retain your 50% NCB at next renewal.
Localized Insights For Hyderabad
| Year of Claim-Free Driving |
Typical NCB |
Avg. Renewal Discount (₹) |
| 1 year |
20% |
₹1,500 |
| 3 years |
35% |
₹3,200 |
| 5 years |
50% |
₹5,000 |
How To Calculate NCB Savings
Use the simple formula:
NCB Discount = (Own Damage Premium × NCB%)
Example:
If your OD premium = ₹8,000
and your NCB = 35%
then your discount = ₹8,000 × 0.35 = ₹2,800 saved.
You can check this automatically in the PolicyBachat Car Insurance Calculator or during renewal quotes.
FAQs
Is NCB applicable on third-party premium?
No, it applies only to the Own Damage portion.
Can I transfer NCB to a new insurer?
Yes, using the NCB certificate or your old policy number.
Does NCB expire if I skip renewal?
It stays valid for 90 days; beyond that, it resets to zero.
Can I retain NCB after selling my car?
Yes, it belongs to you, not the vehicle.
What is the maximum NCB possible?
50% after 5 claim-free years.
Does one small claim reduce my NCB?
Yes, unless you have an NCB Protect add-on.
Is NCB calculated every policy year?
Yes, it increases progressively if you remain claim-free.
Can I use NCB across multiple cars?
No, it’s valid for one active car policy at a time.
How do I check my NCB balance?
It’s displayed in your renewal summary or PolicyBachat account.
Do new cars start with NCB?
No, NCB builds only after the first claim-free year.
Can I transfer NCB to a family member?
Only if ownership is legally transferred to them.
What happens if I file a claim near renewal?
The next renewal will not include NCB unless you have NCB Protect.
Can I recover old NCB after missing it once?
No, once reset, it restarts from 0%.
Is proof of old policy required for transfer?
Yes, for insurer verification, simple upload during renewal.
Do I need inspection for NCB transfer?
No, unless you’ve switched cars or had a long lapse.
Customer Reviews
- “Kept my 50% NCB even after changing insurers - thanks to this guide.” - Arjun P., Mumbai
- “Didn’t know NCB is transferable. Saved ₹3,000 this renewal.” - Sneha R., Pune
- “NCB Protect add-on saved me after a minor accident.” - Rahul V., Delhi
- “Explained NCB rules in plain English - super helpful.” - Priya D., Hyderabad
- “Finally understood why my NCB dropped last year - fixed it now.” - Ramesh G., Bengaluru
- “This post saved me real money. Renewed correctly and retained NCB.” - Kavita S., Chennai