No Claim Bonus (NCB) in Car Insurance

Benefits of NCB in car insurance:

Here are the key benefits of No Claim Bonus in car insurance:

●      Lower Premiums: Save up to 50% on your own damage premium after five consecutive claim-free years.

●      Reward for Safe Driving: Encourages responsible driving habits by rewarding claim-free years.

●      Transferable Benefit: Retain your NCB even when you sell or trade in your car.

●      Improved Affordability: Helps reduce long-term insurance expenses substantially.

●      Protectable Advantage: With an NCB protection cover, your accumulated bonus stays intact even if you file minor claims.

How does NCB work in car insurance?

The No Claim Bonus operates on a straightforward principle: the fewer claims you make, the higher your NCB. When you buy a car insurance policy from Zurich Kotak General Insurance and complete a policy term without filing a claim, you earn a certain percentage of NCB. This discount is applied to your premium during renewal.

Here's how the NCB accumulates:

·       After 1 claim-free year – 20% NCB

·       After 2 consecutive claim-free years – 25% NCB

·       After 3 consecutive claim-free years – 35% NCB

·       After 4 consecutive claim-free years – 45% NCB

·       After 5 consecutive claim-free years – 50% NCB

If you make a claim during the policy year and don’t have an NCB Protection Cover, your No Claim Bonus resets to zero. However, with Zurich Kotak General Insurance, you can purchase an NCB Protection Cover to safeguard your discount even after making a claim.

Why is NCB so important in car insurance?

The importance of NCB in car insurance cannot be overstated. It acts as a reward system for responsible vehicle ownership and offers significant financial benefits. Here's why No Claim Bonus is essential:

1.      Cost Savings: The most obvious advantage is the reduction in your car insurance premium. A 50% NCB means you pay only half of the premium cost, which can lead to substantial savings over time.

2.      Encourages Safe Driving: Knowing that making a claim can affect your NCB motivates drivers to be more cautious, leading to safer roads and fewer accidents.

3.      Transferable Savings: Since NCB is transferable, you can carry over your discount when switching insurers or buying a new car, ensuring your savings continue uninterrupted.

4.      Boosts Policyholder Loyalty: The cumulative nature of NCB encourages policyholders to stick with their insurer, fostering long-term relationships.

How is NCB in car insurance calculated? 

Here’s how No Claim Bonus (NCB) in car insurance is calculated step by step:

1)     Complete a claim-free year: You become eligible for NCB when you complete your first policy year without making any claims.

2)     Earn incremental discounts: The NCB is applied at the time of renewal and increases with every consecutive claim-free year as follows:

●      After 1st claim-free year: 20%

●      After 2nd claim-free year: 25%

●      After 3rd claim-free year: 35%

●      After 4th claim-free year: 45%

●      After 5th claim-free year and onwards: 50%

3)     Apply the discount on renewal: When renewing your policy, the accumulated NCB is applied as a percentage discount on your own damage premium.

4)     Reset upon claim: If you make a claim, your NCB is reduced or reset at the next renewal unless you have an active NCB protector add-on.

NCB discount on your premium calculation

The No Claim Bonus directly affects your premium calculation. For instance, if your annual premium is ₹15,000 and you have a 35% NCB, you only need to pay ₹9,750 during renewal. This discount applies only to the own-damage component of your car insurance premium and not to the third-party liability portion.

With Zurich Kotak General Insurance, this premium reduction can be substantial, especially as your NCB accumulates over several claim-free years.

Can No Claim Bonus be protected? 

Yes. NCB can be protected with an add-on that allows you to make a certain number of claims without losing your accumulated bonus. The exact number of claims covered depends on your policy terms, so it’s important to check your policy documents or speak with your insurance provider for details.

With Zurich Kotak, this NCB Protection add-on ensures that even if you make a limited number of claims, your accumulated bonus can remain intact. This helps you maintain lower premiums at renewal and continue benefiting from years of claim-free driving.

When Is No Claim Bonus applicable?

The No Claim Bonus is applicable during the policy renewal period, provided no claims were filed in the previous policy year. If you've maintained a claim-free record, Zurich Kotak General Insurance will apply your accumulated NCB as a discount on your renewal premium.

It's important to note that NCB applies only to the own-damage premium and not to third-party coverage. Also, to retain your No Claim Bonus, you must renew your policy within 90 days of its expiry. Failing to do so will result in the forfeiture of your accumulated NCB.

How To Check NCB In Car Insurance

You can easily check your No Claim Bonus (NCB) status using any of the following methods:

●      Online: Log in to your Zurich Kotak customer account on their website to view your current policy details.

●      Policy Documents: Check your previous policy papers or renewal notice, where your NCB percentage is clearly mentioned.

●      Customer Support: Call Zurich Kotak at 1800 266 4545, email care@zurichkotak.com, or get in touch with your insurance advisor for assistance.

●      Mobile App: If you’re a digital policyholder, you can also check your NCB through the Zurich Kotak mobile app.

●      Renewal Quotation: Your eligible NCB discount will be automatically applied when you receive your renewal quotation.

NCB protection cover as car insurance add-on

The NCB Protection Cover is a valuable add-on offered by Zurich Kotak General Insurance. This add-on allows you to file one or more claims during the policy term without losing your accumulated No Claim Bonus.

For example, if you have a 50% NCB and make a minor claim, the NCB Protection Cover ensures that your bonus remains intact, safeguarding your premium discounts for future renewals.

When is the No Claim Bonus (NCB) terminated?

The No Claim Bonus (NCB) is a valuable reward offered by Zurich Kotak General Insurance for safe and responsible driving. However, there are certain scenarios where the NCB can be terminated:

1.      Claim Filed During Policy Term: If you make a claim for any damage or loss during the policy period, your accumulated NCB will be forfeited for the next renewal.

2.      Policy Lapse: If you fail to renew your policy within 90 days of its expiry, your accumulated NCB will be terminated and cannot be reinstated.

3.      Transfer Without Endorsement: When selling your vehicle, if the NCB is not transferred to your new vehicle or carried forward via proper endorsement, it may be terminated.

To maintain your NCB, consider opting for Zurich Kotak’s NCB Protection Add-On, which allows you to make a certain number of claims without losing your bonus.

How does NCB function if a vehicle is stolen or incur accident?

In unfortunate situations like an accident or theft of your vehicle, here’s how Zurich Kotak General Insurance handles the No Claim Bonus (NCB):

·       Accident: If a claim is filed for repairs or damages resulting from an accident, the NCB will be forfeited during the next policy renewal unless you have an NCB Protection Add-On.

·       Theft: In case of a total loss due to theft, the NCB accumulated on the stolen vehicle will be terminated. However, Zurich Kotak General Insurance allows the transfer of the NCB to a new vehicle if purchased within the stipulated time frame.

·       No Claim Made: If you choose to cover minor damages out-of-pocket and avoid filing a claim, your NCB will remain intact.

Tip: Investing in the NCB Protection Add-On ensures that your NCB remains unaffected even after certain claims, offering you peace of mind and savings on future premiums.

How to transfer NCB to new car insurance?

You can transfer your No Claim Bonus (NCB) when you buy a new car or switch insurers. Here’s how to do it:

●      First, get an NCB retention certificate from your previous insurer once your old policy has expired or you’ve sold your vehicle.

●      You’ll need to provide proof of ownership, such as the sale deed or transfer documents for your old car.

●      Make sure to submit your previous policy documents along with the new vehicle’s registration details to Zurich Kotak.

●      Zurich Kotak will verify your eligibility and apply your existing NCB as a discount on your new policy.

This way, you can keep enjoying the benefits of your claim-free years and reduce your new car insurance premium.

Documents required to transfer NCB

·       NCB Certificate from the previous insurer.

·       Copy of the old policy.

·       Proof of claim-free history.

·       Sale agreement (if transferring NCB to a new vehicle). 

Important things to know about NCB in car insurance

1.      NCB applies only to the own-damage portion of your premium.

2.      You can transfer your No Claim Bonus when switching insurers.

3.      NCB is valid for up to 90 days after policy expiration.

4.      Claims made during the policy term will reset your NCB unless you have an NCB Protection Cover.

Terms and conditions of NCB transfer 

When transferring your NCB, keep the following in mind:

●      The NCB is linked to the policyholder, not the vehicle.

●      The transfer must be completed within 90 days of selling or replacing your car. Delays beyond this period may result in the loss of your NCB benefit.

●      Proper documentation is mandatory for the transfer. This includes the NCB retention certificate or an insurer's letter, along with proof of sale such as a sales receipt or transfer certificate.

●      If you insure your new car after the 90-day grace period, your NCB benefit will lapse.

●      Only claim-free years contribute towards your NCB and are eligible for transfer.