|
Levels/
Age of Policy
|
No Claim Discount
|
|
5
|
50%
|
|
4
|
45%
|
|
3
|
35%
|
|
2
|
25%
|
|
1
|
20%
|
|
0
|
00%
|
IRDAI norms for NCB
It is mandatory for car owners in India to buy a car insurance that takes care of third party damages. However, a policy that takes care of own damages becomes a necessity. These package policies are expensive, but the no claim bonus feature offers attractive discounts on the premiums.
What is a No Claim Bonus?
A no claim bonus (NCB) is much like a reward for prudent use of the vehicle and adhering to the rules of the road. It allows the insured a discount on the premiums if no claims are drawn drawn from the car insurance or two wheeler insurance policy
. This discount increases every year, provided, the claim has not been made yet. In other words, the safer you drive, the less you will have to pay in bike or car insurance premiums!
However, this discount is applicable only on the Own Damage premium, and not on Liability premium.
What are the NCB discount rates?
The no claim bonus feature gets you discounts in the premium ranging from 20% - 50%. However, the discount rates are dependent on the age of the policy and when the last claim was made.
Can the No Claim Bonus be waived?
Yes, the no claim bonus can be waived on the following occasions:
1. If a claim has been made
Any claim made from the policy resets the bonus to zero. This is followed, regardless of the size of the claim, or even if the claim was made because of theft of the vehicle.
2. Expiry of policy
The no claim bonus will be cancelled if the policy has been expired for a span of over 90 days.