No-claim bonus (NCB) is a discount that most car insurers offer for drivers who have not made a claim during the two or three years. No Claim Bonus is a reward for who drives well, carefully and does not make any claim in a policy year.The no-claim bonus is basically a discount on your car insurance premium that you can avail when you can renew the policy.
How can I increase my NCB?
If you do not make any claims in few years consecutively, you can accumulate up to 50% of NCB. Each claim free year can give you NCB and it increases each year in prescribe manner i.e. 20%, 25%, 35%, 45%, 50%. These are the percentages of discount that you can avail on Own Damaged premium.
When Can I lose my NCB?
Your accumulated NCB can be wiped out in a single claim. If you take even a smallest claim, your NCB amount will be zero for the next year renewal. One should not take smaller claim and retain the NCB which can reduce the premium for the next year.
Conclusion:
While being careful on the road has many benefits for including your own safety. And your insurer does appreciate your effort of safe and claim free driving.