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How to Restore No Claim Bonus in Car Insurance

No Claim Bonus offers premium savings for safe driving, but an accident can impact it. With add-ons like NCB protection, timely renewals, and careful driving, you can restore and retain your bonus while reducing long-term insurance costs.

  • 05 Sep 2025
  • 5 min read
  • 1 views

Having a car comes with its share of responsibilities, like regular maintenance, timely renewals and careful driving. One of the perks of being a responsible car owner is the No Claim Bonus (NCB). It is a discount on your insurance premium for not raising any claims during the year. But what happens if you do need to file a claim after an accident? Does it mean saying goodbye to your bonus? Not necessarily.

Let us walk you through what no claim bonus in car insurance really means, how an accident can affect it and how you can restore it.

What is a no claim bonus?

A No Claim Bonus is a premium discount offered by the insurer for not making any claims during your car insurance policy term. It starts at 20% after the first claim-free year and can go up to 50% if you maintain a clean record for five consecutive years. The bonus applies only to the own damage portion of a comprehensive car insurance policy and not to third-party car insurance.

Benefits of no claim bonus in car insurance

The No Claim Bonus (NCB) helps lower your car insurance premium by offering a 20%-50% discount on the own damage component, depending on the number of consecutive claim-free years. It rewards safe and responsible driving, belongs to the policyholder (not the vehicle) and can be transferred when switching cars or insurers.

NCB applies only to the own damage cover and remains unaffected by third-party claims. Over time, consistent NCB accumulation can significantly reduce your overall insurance costs.

How does an accident impact NCB in car insurance

An accident can reduce or nullify your No Claim Bonus (NCB), depending on your policy terms and whether you’ve opted for NCB protection. Without this add-on, a claim typically resets your NCB to zero, regardless of your previous claim-free years.

With NCB protection, however, you may retain your bonus even after one or two claims, as per your insurer’s rules. Some insurers offer a step-back clause, reducing your NCB to a lower percentage rather than cancelling it entirely. Losing NCB can lead to higher premiums, and once lost, it must be rebuilt gradually, one level per claim-free year.

How can you rebuild your no claims bonus after an accident?

Restoring your No Claim Bonus (NCB) after an accident is possible with consistent, claim-free driving and smart policy choices. Adding an NCB protection add-on at renewal can help retain your bonus even after limited claims. Driving carefully post-accident and paying for minor damages out of pocket can prevent further NCB loss.

Some insurers offer step-back options or buy-back features that allow partial or full restoration of NCB over time. Choosing only essential add-ons also keeps premiums in check and reduces the urge to file small claims. With long-term planning and safe driving, you can gradually rebuild your NCB.

How to keep your NCB intact

You can protect your NCB by taking a few simple but important steps. Include NCB protection when buying or renewing a comprehensive car insurance policy, avoid raising claims for minor damages and consider paying out of pocket if the repair cost is low.

You should also make sure to renew your policy on time, as a lapse of over 90 days can lead to loss of NCB. In addition to these, maintain your vehicle regularly to prevent avoidable issues and drive carefully to reduce the chances of accidents. You should also look for policies that offer step-back or partial NCB retention to minimise the impact of any future claims.

Conclusion

No Claim Bonus is a smart way to save on your premium under a comprehensive policy. It is a reward for safe and claim-free driving, something you don’t get with third-party car insurance. An accident can affect your NCB, but it is not the end of the road. You can rebuild your bonus and make the most of your coverage with the right protection, timely renewals and careful driving.

FAQs

  • What is NCB protection in car insurance?

It is an add-on that lets you keep your No Claim Bonus even after limited claims.

  • How is NCB value in insurance calculated?

It depends on the number of claim-free years and ranges from 20% to 50%.

  • What is full no claims bonus protection?

It allows you to retain your no claim bonus amount even after one or two claims.


Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

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