No Claim Bonus (NCB) stands as a pivotal factor in determining the premium amount of car insurance policies. Before diving into the intricacies of purchasing car insurance, it’s crucial to grasp the essence of NCB and its operational dynamics.
Essence of NCB
NCB embodies a discount that insurers offer on the own damage segment of the premium during renewal for abstaining from filing any claims throughout the policy’s tenure.
Leveraging NCB
NCB holds the potential to substantially slash your premium during policy renewal or new policy acquisition. The longer the streak without claims, the greater the discount upon renewal.
NCB Calculation
The calculation of NCB operates on a progressive scale, where each claim-free year contributes to an escalating percentage of discount:
- First claim-free year: 20% NCB.
- Second consecutive claim-free year: 25% NCB.
- Third consecutive claim-free year: 35% NCB.
- Fourth consecutive claim-free year: 45% NCB.
- Fifth consecutive claim-free year: Maximum limit of 50% NCB.
Dynamics of NCB Operation
NCB faces depletion to zero upon filing a claim during the policy period. Additionally, failure to renew the policy within 90 days of its expiry date results in the lapse of NCB. However, renewing within the grace period of 90 days ensures NCB retention. NCB can also be transferred to a new policy upon switching insurers.
Exploring NCB in Detail
It’s imperative to note that NCB exclusively applies to the own damage section of your car insurance policy. Transferability of NCB from one insurer to another is contingent upon the issuance of an NCB certificate by the previous insurer.
Functionality of NCB
NCB functions as a reward mechanism wherein policyholders refraining from claims are duly incentivized. The accumulation of claim-free years translates to heightened discounts upon policy renewal or purchase.
Checking NCB Status
To ascertain NCB status, refer to the NCB section of your current policy or reach out to your insurer. Additionally, you can procure an NCB certificate for seamless transfer of NCB between insurers.
Add-On Covers
No claims bonus protection serves as an add-on cover in car insurance policies, shielding your NCB against one claim during the policy tenure.
Conclusion
NCB epitomizes a reward system for maintaining a claim-free record throughout the policy tenure. Kotak General Insurance extends NCB benefits, facilitating substantial savings on car insurance premiums. Understanding the mechanics of NCB empowers you to make informed decisions while comparing insurers.
