No Claim Bonus (NCB)

Benefits of NCB in Car Insurance:

1) Discount

The most immediate and noticeable benefit of the No Claim Bonus is the discount it offers on your car insurance premium. With Zurich Kotak General Insurance, this discount can range from 20% to 50%, depending on the number of consecutive claim-free years. This directly translates into lower costs for policyholders, making comprehensive car insurance more affordable.

2) Transferable

An often-overlooked benefit of NCB is its transferability. When you switch from another insurer to Zurich Kotak General Insurance, your accumulated No Claim Bonus can be transferred to your new policy. Similarly, if you purchase a new car, your existing NCB can be transferred to the new vehicle's insurance policy, ensuring you don’t lose out on the discounts you’ve earned.

How Does NCB Work?

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.

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.

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.

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.

How Much Does A No Claim Bonus Protection Add-On Cost?

The cost of the NCB Protection Cover depends on several factors, including your vehicle type, policy premium, and accumulated No Claim Bonus. While the add-on does come at an extra cost, the long-term savings it offers by protecting your NCB far outweigh the initial expense.

Who Should Opt for A No Claim Bonus Protection Cover?

The NCB Protection Cover is ideal for:

1.      Drivers with High NCB: If you've accumulated a 35% or higher No Claim Bonus, protecting it with an NCB Protection Cover is a wise choice.

2.      Owners of Expensive Vehicles: Luxury car owners can benefit greatly from this add-on, as even minor repairs can be costly.

3.      Safe Drivers: Those who rarely file claims but want to safeguard their hard-earned NCB should consider this cover.

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?

Transferring your No Claim Bonus to a new policy with Zurich Kotak General Insurance is a straightforward process:

1.      Obtain NCB Certificate: Request a certificate from your previous insurer.

2.      Submit Documents: Provide the certificate along with the new policy application.

3.      Policy Issuance: The NCB is applied to your new policy, maintaining your discount.

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).

How to Retain No Claim Bonus After Making A Claim

The best way to retain your NCB after filing a claim is by purchasing an NCB Protection Cover. Without this add-on, any claim—no matter how minor—will reset your No Claim Bonus to zero. With Zurich Kotak General Insurance, this add-on ensures your accumulated discount remains intact even after making a claim.

What do IDV and NCB mean in insurance?

·       IDV (Insured Declared Value): The market value of your car, which determines the maximum claim amount in case of total loss or theft.

·       NCB (No Claim Bonus): A discount on your car insurance premium for maintaining a claim-free policy term.

Things to remember about NCB in India:

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.