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How is No claim bonus calculated for car insurance?


Date: 18 Feb 2016    Group: Finance and Investments    Category: Insurance   

How is No claim bonus calculated for motor vehicle insurance policy? Is the calculation process same for cars as well as bikes? Will the No claim bonus be available throughout the life of the vehicle or will it be stopped once we met with an accident and claimed the insurance?
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Author: Kailash Kumar    19 Feb 2016      Member Level: Platinum     Points : 2  (Rs 2)    Voting Score: 0

No claim bonus or NCB in short is the discount given by the insurer for making 'no claims'. NCB can be accumulated over years and may range from 20% to 50% on own damage premiums. It is for the insurer, not for the vehicle. Therefore even if the vehicle is changed, the insurer can get the benefit of NCB. Generally if no claim is made during preceding 1, 2, 3, 4 or 5 years NCB @ 20%, 25%, 35%, 45% and 50% are applicable.

Author: Swati Pawar    21 Mar 2016      Member Level: Bronze     Points : 2  (Rs 2)    Voting Score: 0

No claim bonus (NCB) is a reward given when you renew your policy by insurance companies for every unclaimed year. The NCB for the first unclaimed year is usually fixed to a certain percentage, most cases 20%. For every consecutive unclaimed year, this Benifit increases by 5-10% and is given on premium or sum insured, each time you renew your policy. Here is some more info you can find about how NCB works.



Reference: http://www.turtlemint.com/blog/no-claim-bonus-reward-driving-safe-zero-claims/




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