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How Is Ncb Calculated In Car Insurance Policy

If you don't file any claims throughout your car insurance insurance policy's coverage term, your insurance provider may reward you with a no-claims bonus (NCB). It's a reduction applied to your premium each time you renew your insurance policy after it has expired, and it's often called an NCB discount. The length of time that has passed without a claim being made affects the size of the no-claim bonus. A no-claim incentive of 20% to 50% is available as a result. A claim-free insurance policy will let you earn more NCB over and above the 55%–66% you would have received under your prior policy.

How does a car insurance figure out a driver's claim-free status while offering a no-claims discount? 

The policy's no-claims bonus is only applicable after the first year. If you renew your coverage within 90 days, it will be determined as follows:

  • A no-claims discount of 20% is offered by many car insurance once the first year of coverage has passed without a claim being filed.

  • If you go three years without filing a claim, your no-claim incentive will increase to 35%.

  • If the claim is delayed by four years or more, the NCB decreases to 45%.

  • The no-claims bonus calculator is available for your use if you'd want to quickly determine your no-claims bonus.In the case of liability insurance for third party car insurance, NCB does not apply.

Own Damage is the only kind of coverage that includes the No Claim Bonus. Thus, if you just have third party car insurance on your auto insurance policy, you will not be eligible for the NCB discount. Likewise, it does not apply to the optional extras.

When your policy is up for renewal, you will not lose any of your NCB if you choose not to renew with certain optional coverage.The NCB Protector is the only available upgrade that can safeguard your NCB benefit in the event of a claim.

NCB Documentation Authenticity

Typically, the NCB documentation is good for two years. To put it another way, if a policyholder is unable to drive for whatever reason or does not have his own insurance for more than two years, he will be required to begin the policy-buying process from scratch the following year.

Additional Read:- Which Car Insurance Is Best In India 2022-2023
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