A No Claim Bonus (NCB) lets you save on your car insurance premiums for every claim-free year. However, an eligible claim may reduce the discount you earn over the policy period. Protecting this benefit can make your policy renewal more cost-effective.
If you are planning to buy or renew car insurance online, a proper understanding of this discount can help you make informed decisions and protect potential benefits. Read on to learn how it works.
What is ‘No Claim’ bonus in car insurance?
The No Claim Bonus in insurance is the reward provided by your insurer on your car insurance online or offline, for not filing any claims in the previous year. It is typically a discount offered on the premium amount during renewal of your existing plan. NCB keeps accumulating for every continuous claim-free year and ranges from 20% to 50% for 1 year to 5 continuous years.
The table below showcases the IRDAI-approved NCB slab rates in car insurance:
| Policy Age | No Claim Bonus |
| Not filing a claim after 1 year | 20% |
| Not filing a claim after 2 years | 25% |
| Not filing a claim after 3 years | 35% |
| Not filing a claim after 4 years | 45% |
| Not filing a claim after 5 years | 50% |
Note: These rates are fixed by IRDAI and are the same across all insurers.
What happens to your NCB at renewal after a claim?
Here’s what actually happens to your NCB after a claim:
- Loss of NCB: If you file an own damage claim during the policy tenure, you lose your accumulated No Claim Bonus (NCB) at renewal.
- Impact on premiums during renewal: Without the NCB discount, you might need to pay a higher premium during renewal.
How TATA AIG helps protect your NCB?
Here are some ways TATA AIG protects your No Claim Bonus in insurance:
- No claim bonus protection cover: It is an add-on offered by TATA AIG that helps you retain your accumulated NCB after a claim.
- Extended eligibility: The NCB Protection add-on is available for cars up to 10 years of age.
- 90-day grace period: You may also lose your accumulated NCB if you do not renew your policy on time. TATA AIG gives you a grace period of up to 90 days from the policy expiry date to renew and retain your NCB.
- Timely notifications and online renewals: TATA AIG sends timely renewal notifications and offers online renewal options through its website or mobile app. You can renew your policy conveniently in a few minutes.
- 24×7 customer support: If you find any issues during the renewal process or have other queries, TATA AIG’s customer support team is available 24×7 at 022-6489-8282 to assist you.
Tips to protect your ‘No Claim’ bonus
Follow the tips below to protect and retain your No Claim Bonus:
- When purchasing your car, transfer your NCB to the insurance policy for your new vehicle to retain the bonus you have earned.
- Follow traffic rules and practice safe driving habits to reduce the risk of accidents and insurance claims.
- Renew your car insurance policy before it expires or within the applicable grace period to avoid losing your accumulated NCB.
- Consider paying for minor repairs out of pocket if the cost is manageable to avoid filing a claim.
- Ensure regular vehicle maintenance to help reduce the risk of accidents and damage that may lead to insurance claims.
- Consider adding the NCB protection add-on to your policy to retain your accumulated NCB.
Protect your ‘No Claim’ bonus with TATA AIG car insurance
Protecting your No Claim Bonus helps save your insurance premiums during renewal. The No Claim Bonus protection add-on can help you retain your accumulated bonus after filing a claim. This TATA AIG add-on is available for cars up to 10 years of age, and you can access your policy and add-on details anytime through their website or mobile app. Explore TATA AIG car insurance options to choose a suitable protection that aligns with your needs.