No Claim Bonus (NCB) in Car Insurance

NCB is calculated as a percentage discount on the own-damage premium based on the number of consecutive years without a claim. The IRDAI-prescribed NCB slab structure is as follows.

For example, if your OD premium is ₹10,000 and you have 3 consecutive claim-free years, the 35% NCB discount reduces your OD premium to ₹6,500 at renewal. The discount is applied before GST is calculated.

No Claim Bonus offers clear financial and practical advantages, making it a valuable benefit for careful and claim-free drivers over time.

•       Progressive premium savings: The NCB discount increases each year you remain claim-free, from 20% after the first year to a maximum of 50% after five years. Over time, this translates to significant savings on your car insurance renewal cost.

•       Reward for safe driving: NCB directly rewards responsible driving behaviour and careful vehicle use, creating a financial incentive to avoid minor claims that could reset the discount.

•       Transferable between vehicles: NCB is linked to the policyholder, not the car. When you sell your old car and buy a new one, you can transfer the accumulated NCB to the new car’s policy.

•       Portable across insurers: IRDAI allows NCB portability, meaning you retain your discount even when switching to a different insurance company at renewal.

•       Builds long-term value: A 50% NCB after five years effectively halves your OD premium, compounding savings year after year as long as you remain claim-free.

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.

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.

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 1800-2120, 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 helps you keep your hard-earned discount even if you need to make a claim during the policy period.

NCB protection cover is an optional add-on that allows you to file a limited number of claims (usually one or two per policy year) without losing your accumulated NCB discount. Without this add-on, filing even a single claim resets your NCB to zero at the next renewal.

When you have NCB protection and file a claim during the policy year, the insurer processes the claim normally but does not reset your NCB at renewal. The protection typically allows one claim per year without NCB impact.

NCB protection is most valuable for policyholders who have accumulated a high NCB (35% to 50%) over several years and want to safeguard that discount. It is also useful for drivers in high-traffic urban areas where the risk of minor accidents is higher, and for policyholders who want the flexibility to file claims for genuine damage without worrying about premium increases.

The premium for NCB protection is typically 5% to 10% of the OD premium, depending on the insurer and the NCB level being protected. For a policyholder with a ₹15,000 OD premium and 50% NCB, the protection add-on may cost ₹750 to ₹1,500 per year, which is significantly less than the savings at risk if the NCB were to be reset.

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.

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.

Transferring your No Claim Bonus (NCB) is a simple process that allows you to retain your earned discount even when you change your car or insurer.

You can transfer NCB when selling your old car and buying a new one, when switching to a different insurance company at renewal, or when the existing policy expires and you purchase a new one within the grace period.

Follow these simple steps to transfer your NCB smoothly to your new policy.

1. Request an NCB certificate from your current insurer. This document confirms your claim-free history and NCB percentage.

2. Provide the NCB certificate to the new insurer at the time of purchasing or renewing the policy for the new car.

3. The new insurer verifies the NCB details with your previous insurer.

4. Once verified, the NCB discount is applied to the OD premium of the new policy.

Keep these documents ready to ensure a hassle-free NCB transfer process.

•       NCB certificate from the previous insurer.

•       Previous policy copy or policy number.

•       Vehicle registration certificate (RC) of the new car.

•       Identity proof and address proof of the policyholder.

•       No-claim declaration or self-declaration form (if required by the new insurer).

An NCB certificate is a document issued by your insurer that confirms your claim-free history and the NCB percentage you are entitled to. You need this certificate when switching insurers, transferring NCB to a new car, or providing proof of your claim-free record. To obtain it, contact your current insurer’s customer support, request the certificate by providing your policy number, and the insurer will issue it within a few working days.

Understanding the key NCB rules set by IRDAI helps you make better decisions and avoid losing your earned benefits.

●      NCB applies only to the own-damage premium. The third-party premium is not affected.

●      NCB is earned per policy year. A single claim during the year resets the NCB to zero (unless protected by an add-on).

●      NCB is linked to the policyholder, not the vehicle. It can be transferred to a new car or a new insurer.

●      The grace period for retaining NCB during policy renewal is typically 90 days. If the policy lapses beyond this period, the NCB is lost.

●      NCB can be accumulated up to a maximum of 50% after five consecutive claim-free years.

●      IRDAI standardises the NCB slab structure, ensuring uniformity across all motor insurers in India.

Choosing between NCB protection and zero depreciation depends on your priorities, whether you want to protect your discount or reduce claim expenses.

Best NCB Insurer

No insurer legally offers a higher NCB than another - IRDAI fixes the same 20%–50% slab for everyone. The real difference is who protects and maximizes that discount for you.

With Zurich Kotak, your NCB comes backed by:

• NCB Protection Cover - keep your discount even after a claim

• Free, instant NCB transfer - switching insurers or cars

• 6500+ cashless garages - fewer OD claims, faster repairs

• 24/7 claims support -Jet-Speed claim processing