What You Need to Know About NCB Calculation in Motor Insurances

What Is NCB? A Reward for Safe Driving

Think of NCB as a loyalty reward from your insurer: the more claim-free years you complete, the bigger your discount on car insurance renewal. But here’s the twist—this benefit applies only to the own-damage component of your policy, not the mandatory third-party cover.

How Is NCB Calculated?

NCB kicks in from the 2nd year of your policy if you’ve stayed claim-free:

• 1 claim-free year → 20% discount
• 2 consecutive years → 25%
• 3 years → 35%
• 4 years → 45%
• 5 years and beyond → 50% maximum

For example, if your own-damage premium is ₹10,000 and you’ve gone claim-free for 3 years, your NCB is 35%, saving you ₹3,500 on renewal.

When Does NCB Get Lost?

Understanding the pitfalls is just as important as knowing the perks:

1. Filing a claim (without an add-on) resets your NCB to zero.
2. Not renewing on time (usually within 90 days of expiry) also forfeits the benefit.

Hence, on-time renewal is key—especially when you opt for affordable coverage through Jio Insurance Broking.

NCB Protect Add-On—Your Safety Net

If you’re someone who wants to utilize your insurance without losing your hard-earned NCB, consider NCB Protection or Add-On. It allows you to make minor claims while retaining your NCB—though terms like claim limits or premium loads vary by insurer.

Transferring NCB: New Car or New Insurer? No Problem

NCB is tied to the policyholder, not the vehicle:

• Switching insurers?
  You can carry forward your earned NCB—just provide your NCB certificate or previous renewal docs.
• Buying a new car?
  Transfer is still possible, through documentation with the insurer.

Just avoid big renewal gaps, and your savings journey continues seamlessly—especially useful if you're exploring the best deals via Jio Insurance Broking.

Why This Matters—and Why Jio Insurance Broking?

Navigating car insurance in India can feel tricky, especially when you’re comparing features like NCB across insurers. Here’s how Jio Insurance Broking can elevate your experience:

• Transparent NCB Displays – When browsing quotes, you can clearly see how many NCB years you’re eligible for, and what discount percentages (20–50%) apply.
• Smart Alerts – Forgetting expiry is easy. Jio Insurance sends timely reminders so your NCB doesn’t lapse.
• Add-On Suggestions – Based on your driving history, the platform can recommend whether investing in NCB protection makes sense.
• Hassle-free Portability – Whether switching insurers or insuring a new car, Jio helps manage documentation like NCB certificates or Form 29/30 for seamless transfer.
• Savings Calculator – A built-in tool to estimate your renewal premium with NCB applied—so you always know what you’ll owe.

By combining these features, Jio Insurance Broking helps you transform NCB from a technical term into tangible savings—and safer driving habits—year after year.

Tips and Takeaways: Max Your NCB in Style

1. Drive carefully and avoid making small claims—pay out of pocket instead and keep climbing the NCB ladder.
2. Renew on time to avoid losing accumulated years.
3. Consider the NCB Protection add-on if you’re in heavy traffic zones or prone to minor scrapes.
4. Always transfer your NCB when switching cars or insurers—don’t let savings slip away.
5. Use digital platforms like Jio Insurance Broking to monitor your NCB status, get reminders, and compare offers smartly.

The No Claim Bonus (NCB) is more than just a discount—it’s a badge of safe driving that pays off over time. From 20% savings in year two to a 50% cap after five claim-free years, it directly reduces your own-damage premium (not third-party liability)

By understanding how NCB accumulates, gets lost, can be protected, and transferred, you’re not just saving money—you’re rewarding responsibility. Platforms like Jio Insurance Broking make this even easier with timely alerts, calculators, add-on insights, and fluid portability.

So, buckle up, drive safe—and let your NCB work its magic on your next car insurance renewal.