You might have heard of the term ‘No Claim Bonus (NCB)’ or even benefited from it. A no claim bonus is offered by general insurance companies if you do not make a claim for your car insurance policies. Basically, it is a discount in premium that general insurance companies offer when there is no single claim made during the term of an insurance policy. In other words, one can say it’s a way to get rewarded for safe driving. What is more tempting is that the NCB discount keeps increasing with every passing year of no claim. Additionally, one also get to carry over the NCB to a new vehicle just in case you sell off your old car and buy a new one. In this article we will discuss how to get a no claim bonus even after a claim of your Car. This is a completely legal and legitimate method.
How to Get No Claim Bonus Discount Even After a Claim for your Car?
First let’s see what are the general No claim bonus percentage discounts that general insurance companies offer. The percentage of the discount depends upon the number of years for which you haven’t made any insurance claim. The NCB discount is normally 20% for the 2nd year, 25% for the 3rd year, 35% for the 4th year, 45% for the 5th year and 50% for the 6th year. However one should take into account that the No Claim Bonus discount will be provided only and only if the insurance policy is renewed within 90 days of previous term’s expiry from the same insurance company.
Now lets assume that you have driven your vehicle very carefully all these years. And there is no insurance claim as well. But in spite of your careful driving, a very small incident occurs just a few days before the expiry of your current car insurance policy. Here is your chance to get a good discount through the No Claim Bonus. We will let you know the process. In a recent development, some major motor vehicle insurance companies in India have started offering a feature called NCB retention. So, basically, it is an optional add-on feature to your car insurance policy which protects the no claim bonus, but up to a certain limit. Through this No Claim Bonus Retention, one can go on to claim a No Claim Bonus discount even if certain claims have been made. With this add-on feature of your car policy cover, a pre-defined number of claims can be made by the car owner without affecting the No Claim Bonus at all. The No Claim Bonus (NCB) retention is definitely for you if you have not made a claim since two or more years.
Generally, there are four conditions of NCB retention.They are-
- The No Claim Bonus Percentage should be at least 25% of the Policy Premium
- The policy is renewed with the same insurance company within 90 days of its expiry
- One approved accidental claim is registered during your car insurance policy period
- Total value of the claim payment made during the policy period should not be more than 25% of the value of your car.
India Autoz believes that the NCB retention is a great feature that should be opted. It can be opted by paying a small amount over the insurance premium. Even though there are several car insurance policy companies which offer this add on feature, one such insurance company is Reliance General Insurance. It offers this add-on feature for any private cars.