If you are purchasing or renewing any insurance policy, whether it’s for a car, bike, or even your health, you may come across the term NCB (No Claim Bonus). But what is NCB in insurance, and how can it benefit you? Whether you’re insuring a bike, car, or even your health, NCB can reward you for staying claim-free.
In this blog, we’ll answer all your questions, including: What does NCB mean in insurance? How to check NCB in car or bike insurance? What is the meaning of NCB in insurance in Hindi? And more.
What is NCB in Insurance?
NCB, or No Claim Bonus, is a reward given to policyholders who do not make any claims during a policy year. It is a reward for being a low-risk customer. The bonus is offered at the time of policy renewal in the form of a discount on the premium. Think of it as a loyalty discount; the longer you go without making a claim, the bigger your discount on the next premium.
- What is the meaning of NCB in insurance? It means you’re eligible for a reward (discount) for not filing any claims in the previous policy term.
- It’s mostly applicable to motor insurance (cars, bikes).
- In health insurance, NCB often works as a bonus increase in the sum insured.
- It promotes careful driving, maintenance, and a healthy lifestyle.
If you’re wondering, what is NCB in insurance policy terms, it’s a feature that reduces your premium as a reward for claim-free years.
What is NCB in Vehicle Insurance?
NCB in vehicle insurance refers to the discount you get on the own-damage premium portion of your motor insurance policy if you didn’t raise a claim during the previous year.
This applies to:
What is NCB in Car Insurance?
In car insurance, NCB is especially beneficial for policyholders who maintain their vehicles well and avoid accidents. The NCB can reach up to 50% after five consecutive claim-free years. This means if your car’s own-damage premium is ₹10,000, you could be paying just ₹5,000 after a few years of safe driving. NCB applies only to the own-damage component and not the third-party premium. Also, if you decide to change your insurance provider, you can carry forward your accumulated NCB with the help of an NCB certificate.
What is NCB in Bike Insurance (Two-Wheeler Insurance)?
NCB in bike insurance functions similarly to car insurance. If you ride safely and avoid filing claims, you earn increasing discounts on your own-damage premium every renewal year. This makes it a highly cost-effective option for two-wheeler owners, especially those who commute daily. When switching insurers or buying a new bike, you can transfer your NCB from your previous policy. If you’re wondering how to select NCB in bike insurance, it is generally auto-applied during renewal if you haven’t made a claim.
Auto or Commercial Vehicle Insurance
For commercial vehicles like taxis, delivery vans, or trucks, NCB works the same way, rewarding claim-free years with discounts. Given the high operational usage of such vehicles, maintaining a good NCB can lead to significant savings. For fleet owners, this translates to better cost control. Many insurers also offer NCB tracking tools specifically for commercial policyholders to help manage multiple vehicles effectively. The only catch is that commercial vehicle NCB is generally non-transferable between personal and commercial policies — it must stay within the same category.
Whether you’re searching for what NCB is in bike insurance or what NCB in auto insurance stands for, the core idea remains the same: claim-free reward.
What is NCB in Health Insurance?
NCB works a bit differently in health insurance. Rather than a discount on the premium, it usually offers a bonus increase in the sum insured for every claim-free year.
So, what is NCB in health insurance?
- You get more coverage (e.g., 10%–50% increase in sum insured over time).
- Some health insurers offer a premium discount instead.
What are IDV and NCB in Insurance?
If you’ve been wondering about what IDV and NCB are in car insurance, here’s a simple explanation:
IDV (Insured Declared Value): The current market value of your vehicle, which is the maximum sum your insurer will pay in case of total loss or theft. It’s a key component in determining your insurance premium and the payout you’d receive for a full loss.
NCB (No Claim Bonus): A reward for not making any claims, offered as a discount on the own-damage premium at renewal. The more claim-free years you have, the higher your NCB, up to a maximum of 50%.
What are IDV and NCB in insurance? These are two key factors that affect your motor insurance premium — one reflects the value of your vehicle, and the other reflects your driving behavior and claim history.
How is NCB Calculated in Motor Insurance?
NCB accumulates with every claim-free year as follows:
| Claim-Free Years | NCB Discount (%) | Example – Own Damage Premium ₹10,000 | Applies To |
| 1 Year | 20% | ₹10,000 → ₹8,000 | Car, Bike, Commercial Vehicle |
| 2 Years | 25% | ₹10,000 → ₹7,500 | Car, Bike, Commercial Vehicle |
| 3 Years | 35% | ₹10,000 → ₹6,500 | Car, Bike, Commercial Vehicle |
| 4 Years | 45% | ₹10,000 → ₹5,500 | Car, Bike, Commercial Vehicle |
| 5 or More Years | 50% (Maximum) | ₹10,000 → ₹5,000 | Car, Bike, Commercial Vehicle |
NCB is calculated only on the own-damage portion of your premium, not on third-party insurance. If you claim the policy term (unless protected by an NCB Protector), the bonus resets to 0% at the next renewal.
To answer a common question: how to calculate NCB in two-wheeler insurance? Use the same table — the discount structure applies to both two-wheelers and four-wheelers.
How is NCB Calculated in Health Insurance?
| Policy Year (Claim-Free) | Type of NCB Benefit | Bonus Percentage | Example – Sum Insured Grows To |
| After 1st year | Cumulative bonus on the sum insured | 10% | ₹5,00,000 → ₹5,50,000 |
| After 2nd year | The cumulative bonus continues | 10% more | ₹5,00,000 → ₹6,00,000 |
| After 3rd year | Bonus keeps adding per claim-free year | 10% more | ₹5,00,000 → ₹6,50,000 |
| Max Cap (varies by insurer) | Some insurers allow up to 50%–100% bonus | 50%–100% | ₹5,00,000 → ₹7,50,000–₹10,00,000 |
| If a claim is made | Bonus may reset or reduce (as per policy) | May reduce or reset | ₹6,50,000 → ₹5,00,000 (original) or partial rollback |
Note: Some health insurers may offer a premium discount instead of increasing the sum insured. Always check the policy wording.
How to Check NCB in Insurance?
Wondering how to know NCB in insurance, or how to check NCB in bike insurance, or car insurance? Here are your options:
How to Check NCB For Car/Bike Insurance?
- Check your policy renewal notice – it usually mentions your NCB percentage.
- Log in to your insurer’s portal or mobile app.
- Use the Insurance Information Bureau (IIB) to view your insurance records.
- Request an NCB certificate from your insurer or agent.
How to Check NCB For Health Insurance?
- Check the latest policy document for increased coverage or a bonus.
- Visit your insurer’s website or mobile app.
- Call customer support to confirm your NCB.
Whether you’re asking how to check NCB in two-wheeler insurance or how to check previous NCB in bike insurance, the insurer’s app or website is usually the fastest method.
How to Transfer NCB to a New Vehicle or Insurer?
NCB is linked to the policyholder, not the vehicle. If you’re switching your car or insurer, you can transfer your accumulated NCB:
- Request an NCB certificate from your previous insurer.
- Submit it to your new insurer.
- Make sure you transfer it within 90 days of your previous policy’s expiration.
What is NCB Protection in Car Insurance?
What is NCB Protection in car insurance? It’s an add-on cover that protects your accumulated NCB even if you make a claim.
- Ideal for people with high NCB (e.g., 35% to 50%).
- What is the NCB protector in car insurance? It’s the same — a safeguard that allows you to retain your bonus after 1 or 2 claims, depending on the insurer’s rules.
Benefits of NCB in Insurance
- Saves money on premiums — up to 50% off.
- Encourages responsible driving and health-conscious living.
- Transferrable between vehicles and insurers.
- In health insurance, it increases your coverage without extra cost.
Common Myths About NCB
- NCB applies to third-party insurance – False. It only applies to own damage.
- NCB is lost if you switch insurers – Not true. Just get an NCB certificate.
- All claims wipe out NCB – Partly true. Unless you have NCB Protection.
Conclusion
Now you know everything about what NCB is in insurance, including how to check NCB in bike insurance, how to check NCB in car insurance, and even what the meaning of NCB in insurance is in Hindi.
NCB is a valuable reward for responsible policyholders — whether you drive a bike, own a car, or maintain a healthy lifestyle. Don’t forget to claim it, protect it, and transfer it when needed.
Frequently Asked Questions (FAQ’s)
1. What is NCB in insurance in Hindi?
To know what NCB is in insurance in Hindi, you must visit IFFCO-Tokio.
2. What does NCB mean in insurance?
It’s a bonus for not making any claims during your policy term, leading to lower premiums.
3. How to find NCB in insurance documents?
Check the renewal summary, last premium slip, or insurer portal.
4. How to select NCB in bike insurance?
It’s applied automatically if you’re eligible. You can choose to retain or reset it at the time of renewal.
5. Can I transfer NCB from bike to car?
No. NCB can be transferred only between similar types of vehicles (bike to bike, car to car).
6. Is NCB applicable to third-party insurance?
No. NCB only applies to the own-damage portion of motor insurance.
7. What happens if I make a claim?
In most cases, your NCB will reset to zero unless you have an NCB Protection Add-on.
Have questions? Drop them in the comments or speak to your insurance provider to know your NCB today!