How Can You Protect Your NCB?

Posted on: Feb 18, 2025 | 3 mins | Written by: HDFC ERGO Team

How Can You Protect Your NCB?

Protecting No Claim Bonus (NCB) in Health Insurance

NCB insurance is one of the most common ways to protect yourself against any unwanted disruptions. If you have been a good driver and have not filed a claim, you will be eligible for discounts under NCB. However, it is advisable that you file for NCB protection.

When you apply for the protection, you will be eligible for NCB discount. You will however have to consult the insurance provider about what are the potential benefits that you will get. This will provide you with the extra advantage of savings on the amount. Nonetheless, the only case is that you need to understand how to protect NCB insurance.

What is NCB in Vehicle Insurance?

The NCB protection in vehicle insurance is one of the best ways to protect the bonuses that you have earned. This will protect your vehicle against any potential damages that may happen due to any accidents. The NCB in vehicle insurance will act as an add-on for the insurance policy of the car. Out of all the add-ons of vehicle insurance, NCB is often considered to be one of the most efficient ones.

The policyholders receive NCB discount, which is why they favor vehicle insurance. However, the discount that you receive will completely depend on the bonus that you accumulated during the policy period. However, you will have to pay around 5-10% extra on the base premium as an add-on to avail of the benefits. Although NCB is a little over the amount, it is worth it considering the wide range of benefits that it has to offer.

Who Needs to Protect NCB?

NCB protection is needed by all the car owners. If you're a car owner, you can avail this discount. However, you must apply for this protection only if you have a good driving history. Apart from that, you should also do that if you have never applied for any claim earlier.

If you are looking for discounts on NCB premium renewals, you should apply for the same immediately. If you own a. Expensive car, you must apply for NCB recovery. This will help you slightly reduce the NCB premiums and the base policy premiums, especially for the policy amount that's slightly higher.

How to Protect No Claim Bonus?

Once you understand what is your current NCB, you need to understand how to protect no claim bonus. You will have to avail of the NCB Protector add-on so as to get these benefits by paying some extra amount during the claim. If you protect your NCB, you will be able to avoid losing out on the benefits.

Therefore, you will be getting inexpensive premium benefits. This is one of the most efficient options that all the drivers prefer because of the savings option. You will be eligible for discounts only from the second year. Therefore, you will be able to save up to 50% on the premiums.

Can NCB Be Terminated?

You will be able to enjoy the benefits of NCB as long as you're not filing any claim. However, the NCB will be terminated if you do not renew the existing claim within 90 days from the date of expiry. If you file for an NCB recovery claim, you will be able to get the benefits for the next year. Nonetheless, if you do not claim, you will lose out on all the benefits. Therefore, it is advisable that you renew the NCB within the right time so that you can still be eligible for benefits without the risk of being terminated.

Is It Important to Get NCB Protection?

Applied NCB means that you will have to protect the NCB. Therefore, it is important that you get the protection cover. By the end of the 5th year, you will be eligible for up to 50% discount on the premium that you're paying. As a result, not only will you get to save money, but you will also be eligible to stick to your budget.

When you accumulate NCB points, you will want to safeguard it for a long time. This will lead you to being conscious while driving thereby avoiding any potential accidents and making you a safe driver on the road. If the car doesn't get too involved in any mishaps in the long run, it will be eligible for a safe drive. Therefore, it will stay around for a longer time. Therefore, you will get to save the bonus in the coming years again.

How to Retain No Claim Bonus Protection?

Once you opt for NCB, it is advisable that you adopt the right measures for protecting it. This will play an important role in avoiding any potential damage to your vehicle. Some of the key tips for retaining the no claim bonus protection for a longer run are as follows:

1. Do Not Make Small Claims

You should avoid making any small claims with the NCB protection. When there's any kind of small damage to your vehicle, you will have to analyse if you can pay or you will have to make a claim. If the amount is small, do not file a claim, but pay for it from your own pocket. However, if the damage is severe and you need to pay a higher bill, you may make a claim.

2. Get the NCB Protection Rider

When you are purchasing car insurance, it is advisable that you get the NCB protection rider as well. This is an add-on for which you will have to pay some extra costs. With this, you will be able to safeguard even after making the claim. With the rider, you will be eligible to retain the NCB, especially for a longer period. So, if you have this rider option, make the claim and then renew it after some time, you will be eligible for getting a significant discount.

Final Thoughts

It is important that you understand how to protect NCB and no claim bonus meaning. Once you get the same for your vehicle, you need to ensure that you file fewer claims so that you can avoid any potential damages and lose out on the bonus. One of the main benefits of NCB is that you can stay safe and prevent the risks of accidents. As car insurance is extremely crucial in India, you will have to avail it and get NCB protection along with it. This will play an important role in the long run to drive maximum benefits, saving money and making you a safe driver.

FAQs

1. How can I save on the no claim bonus?

The no-claim bonus is usually valid for up to two years if you have not claimed. Once you file for renewal and there are no charges against your vehicle, it will be eligible for receiving a discount.

2. How to add no claim bonus protection?

No claim bonus protection can be added as an extra purchase. This can be bought at the price by paying something extra especially when you are opting for car insurance renewal.

3. How long will the NCB certificate be valid?

The NCB certificate will be valid for up to 2 years. However, the timeline may vary depending on the insurance providers. There are some insurance providers who may accept the lapse beyond two years.

4. Can I transfer NCB insurance to a new vehicle owner?

No, you cannot transfer the NCB insurance to your new vehicle owner. This is mostly because the insurance is given to the car owner, and not the transfer. So, when you sell the car, it cannot be transferred.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

Common Mistakes That Can Affect Your No Claim Bonus

How to Claim NCB on New Car Insurance Policy Premium?

No Claim Bonus - Everything You Need to Know!

Tips & Tricks to Keep Your NCB Bonus Intact