You may know about NCB or the No-Claim Bonus in car insurance. But do you know about the NCB Protector add-on cover? This cover can help you keep your accumulated NCB intact, even if you make a claim in a policy year. Yes, you read that right. But now you’re thinking, how is it possible?
Let’s dive into what an NCB Protector is and how you can avail of it.
What is NCB protector in car insurance?
The No-Claim Bonus Protector in a car insurance policy lets you maintain your NCB, provided you make only two claims in a policy year.
The NCB is a reward that the insurance provider gives to the policyholder in case he/she does not make any claim during the policy term. This reward is a discount on the premium during policy renewal. If you make an insurance claim during a year without the NCB add-on, you will lose your accumulated NCB.
The NCB Protector is a way of protecting your No-Claim Bonus that you have earned in the event of your own damage, total or partial loss, including claims for windshield glass, theft of car accesries or vehicle, etc.
Benefits of NCB in Car Insurance
Listed below are the advantages of NCB in car insurance.
Discount on Renewal
You will have to pay a lower premium than the amount paid earlier.
Higher Savings
NCB can be incremental if you do not claim for five consecutive policy years.
Transferable
You can carry it forward if you have plans to sell your vehicle and purchase a new one. As NCB is associated with the owner and not the vehicle, you also have the option to port your policy from one insurer to another.
How Much Does A No Claim Bonus Protection Add-On Cost?
You must keep renewing your car insurance policy without any lapses to maintain your NCB. As there is a year-on-year increment, you can avail of up to 50% discount on the premium if you do not make any claim for 5 consecutive policy years. The price for the NCB Protection add-on ranges between 5% and 10% of your overall policy premium.
Who Should Opt for A No-Claim Bonus Protection Cover?
The no-claim bonus protection cover can be opted by -
- anyone who owns a car and has a valid comprehensive car insurance policy
- any owner whose car is vulnerable to damages and there are higher chances of the owner making a claim
- any person who has a car for 2 years and is not willing to let go of the accumulated NCB
Things to Remember about NCB in India
There are several important things to remember about the NCB in our country, such as –
· Termination period of the NCB
NCB can be terminated if you do not renew it within 90 days of the expiry term or raise a claim without the NCB protection add-on.
· NCB and the Claim
If you make a claim without having the NCB protection add-on cover, the NCB will be terminated.
· Proof of the NCB
The NCB certificate that you have obtained from the insurance provider acts as the NCB proof.
· NCB for Commercial vehicles
You have to be careful concerning the terms and conditions of commercial vehicles in India, as the NCB terms differ from one insurer to another.
Why Opt for No-Claim Bonus Protection Cover?
Choosing a No-Claim Bonus (NCB) Protection Cover is like adding a layer of additional security to your car insurance policy.
- No Claim Bonus Protection Cover ensures that the accumulated NCB remains unaffected, even if you make a maximum of two claims within the policy tenure.
- By securing the NCB Protection Cover, you safeguard the discount you receive upon policy renewal. Opting for this cover is a smart move for those who want to secure their insurance benefits while having the flexibility to file claims when required.
Conclusion
The No-Claim Bonus (NCB) Protector is a vital add-on for car insurance policyholders looking for ways to secure their NCB despite making claims. This cover not only ensures continued discounts on timely policy renewals but also offers flexibility in making a claim without losing the accumulated NCB.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. 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.