No Claim Bonus is a reward offered to policyholders for not raising any claims during the policy term. As per the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI), policyholders can avail discounts on insurance premiums based on their claim-free years.


Please find below the NCB slab based on the number of claim-free years:



Claim-free renewals (years)

Discount on Premium

On first claim-free renewal

20%

On second claim-free renewal

25%

On third claim-free renewal

35%

On fourth claim-free renewal

45%

On fifth claim-free renewal

50%



It's essential to note that the NCB will reset to zero under the following circumstances:

-  If a claim has been paid/ not honoured 

- The policy expired more than 90 days ago.

- There is any change in ownership.

- The policy is renewed with only Third-party liability coverage.



Use the grid below to see if No Claim Bonus (NCB) applies after a claim.


SL No#

Scenario

NCB treatment

1

No claim was reported until the renewal

Offer NCB

2

Claim reported after renewal

Recover NCB

3

Claim reported before renewal

3.1

Claim paid before renewal

No NCB

3.2

Claim withdrawn before renewal

Offer NCB

3.3

Claim rejected before renewal

No NCB

3.4

Claim closed without payment

Offer NCB

3.4.1

If the claim is reopened after renewal

Recover NCB

3.5

Claim is open/outstanding

No NCB