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How to save on your insurance premiums with No Claim Bonus

Posted by Royal Sundaram on 09 Aug 2010

Thinking of claiming a minor loss from your insurer?  Make sure you know about No Claim Bonus, a crucial feature often overlooked in the car insurance policy. It can help you save up to 50% on your renewal premiums.

  • The car insurance company rewards its policy holders with a No Claim Bonus for the previous claim free year/s.
  • The insured gets a discount of up to 50%* on renewal premium for 5 consecutive claim free years and the same discount continues to apply on every renewal’s premium as long as there is no claim on the policy.
  • In case of a claim on your car insurance policy, the No Claim Bonus resets to zero at the next policy renewal.
  • Given below is the percentage discount that an insured can get for claim free year/s:
*No-claim Bonus
Year Discount (%)
No claim for previous full year 20
No claim for previous 2 years 25
No claim for previous 3 years 35
No claim for previous 4 years 45
No claim for previous 5 years 50
  • No Claim Bonus always follows the insured but not the vehicle. An existing No Claim Bonus can be transferred to a new vehicle in case of replacement, depending on the previous vehicle’s insurance validity.
  • Switching to Royal Sundaram’s car insurance lets you transfer the No Claim Bonus benefits if it is effected with in 90 days from previous policy’s expiration date.  Note that, you will need to submit the documentary evidence on the NCB entitlement.
  • NCB will remain valid for three years from the date of policy expiration incase if the existing car is sold and not replaced with any other car.

Be wise when you make a claim on your car insurance policy. Banking on your insurance policy for every petty repair and or replacement may not let you enjoy the policy’s benefits to the fullest, instead it will only add to your renewal premium.

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