If you have managed to go a few years without filing a claim, your insurer rewards you with a No Claim Bonus (NCB), a discount on your motor insurance premium. It is a smart incentive that grows with every claim-free year, helping you save more time.
But what happens if you have to make a claim after an accident? Does the bonus disappear completely? Not necessarily. Let us explore how you can restore it and continue enjoying its benefits.
What Happens to Your NCB After a Car Accident?
The No Claim Bonus is linked directly to your claim history. When you go a year without raising a claim, your NCB discount increases. The discount starts at around 20% in the first year and reaches up to 50% after five consecutive claim-free years.
However, even a single claim after an accident can break the streak. Once a claim is registered, your accumulated NCB usually resets to zero during the next policy renewal. That means your premium will go back to its original rate, and you will need to start rebuilding the discount from scratch.
The only exception is if you have purchased an NCB protection add-on, which safeguards your discount even if you make a limited number of claims during the policy period. Without the add-on, your NCB benefit is lost once the claim is settled.
Ways to Restore Your NCB
Losing your NCB after years of careful driving can feel disappointing, but there are ways to regain it over time or protect it for the future.
Opt for an NCB Protection Add-On
Many insurers offer NCB protection as an optional car insurance add-on. This allows you to file a certain number of claims in a year without losing your accumulated bonus. You can opt for the add-on while purchasing a new policy or at the time of renewal. It is ideal for drivers who want long-term savings while still staying protected against unexpected accidents.
Maintain a Claim-Free Period Again
If you have lost your NCB, you can start earning it back by maintaining a clean record. Each year you go without raising a claim will help you rebuild your discount gradually. 20% in the first year, 25% in the second, and so on, up to 50%.
Switch Insurers Without Losing NCB
If you are changing your car insurance provider, you can carry your existing NCB with you. The new insurer will honor the accumulated bonus as long as you provide the necessary proof, such as your previous insurer’s NCB certificate. This ensures your discount continues seamlessly even if you move to another company.
Renew on Time
Always renew your policy before the due date. If your car insurance lapses beyond the insurer’s grace period, your NCB will automatically expire. By renewing your policy on time, you can keep your bonus intact.
Tips to Preserve Your NCB in the Future
- Drive cautiously and avoid minor collisions or scrapes that lead to small claims.
- For minor damage, consider paying out of pocket if the repair cost is lower than your NCB savings.
- Choose voluntary deductibles to keep premiums reasonable and discourage small claims.
- Always verify that your NCB status is accurately reflected during policy renewal.
Conclusion
Your No Claim Bonus is recognition for your careful driving and financial discipline. By protecting and restoring it, you can keep your car insurance affordable year after year.
With reliable insurers like TATA AIG, you can easily track, transfer, and protect your NCB through online tools and add-ons. It is a simple way to make sure your good driving habits continue to pay off, even after an accident.
Also read: Factors to Consider by Young Consumers When Selecting Health Insurance Coverage
