NCB Protection Cover in Car Insurance

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NCB Protect is a smart way to guarantee that your hard-earned incentives remain protected even though you raise a claim. Of all the add-on choices available, this is one of the most advantageous options for you. 

Opting for the No Claim Bonus coverage guarantees low premiums for more than one year based on NCB accrued. You are eligible for low premiums from the second year onwards. This way, the policyholder will save money on insurance premiums.

Suppose you drive safely for a year and do not make any car insurance claim during the car insurance policy term. As a result, the insurer gives you a discount when renewing your policy. This reward is referred to as a No Claim bonus in car insurance. 

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Below, is a table that will show you the NCB slab on the number of claim-free years:

Claim-free renewals (years)Discount on Premium
On first claim-free renewal20%
On second claim-free renewal25%
On third claim-free renewal35%
On fourth claim-free renewal45%
On fifth claim-free renewal50%

Features and Benefits of NCB Protection Add-on

Here are the main advantages of NCB Protect.


The NCB Protect cover will allow you to get a discount despite raising claims. 


The NCB protection cover is affiliated with the owner of the vehicle and not the car. Therefore, if you intend to sell your old (insured) car and buy a new one, you can transfer the NCB Protect cover. The NCB Protect cover also remains with you if you want to port your policy from one insurer to another.

How NCB Protection Cover Works 

NCB Protection cover works as an extra layer of protection for your new car insurance policy. Let us assume that you have a comprehensive policy for your car. When you opt for the comprehensive policy, you are already entitled to receive the No Claim Bonus. 

If you have to claim damages, the NCB will not be intact in normal circumstances, and you will stand to lose your discount on premiums. But suppose you purchase an NCB protection cover. In that case, your discounts will remain intact, and your premium calculation will look as follows.

Calculation byMr. A(with NCB Cover)Mr. B(without NCB Cover)
First-year premiumINR  22,000INR  22,000
The premium for the second year INR 20,000INR 20,000
NCB status after raising a claim

INR 16,000 (NCB 20%) 

(20,000-20% of 20,000)

INR 20,000 (NCB 0% )

Note - The IDV of car insurance reduces due to depreciation. It further reduces the premium; so, you can see the premium reduction in the second year.

Who Should Buy an NCB Protection Cover?

Although the No Claim Bonus Protection Cover is advantageous, as mentioned above, all car owners who wish to protect their driving record and be eligible for discounts should opt for the NCB Protection Cover. Even if the policyholder makes 1-2 claims a year, the No Claim Bonus right is intact. 

In the case of expensive vehicles, in particular, car owners can ensure that they have the No Claim Bonus Protection Cover to receive premium discounts on their car insurance policy.

Also, if you are someone who lives in an accident-prone area or flood-prone area, the chances of you raising a claim are higher hence to keep your NCB intact, it is advisable to opt for NCB Protection Cover. 

How Much Does the No-claim Bonus Add-on Cost?

The policyholder must purchase the addition of the no-claim bonus Insurance cover over and above the primary policy's expense. It is only if the policyholder has a comprehensive automobile insurance policy that he/she may purchase the no claim bonus protection cover. The premium for this cover is typically between 5% and 10% of the cost of the premium for the base auto insurance policy depending on the insurer.

Even though the no claim bonus protection plan is a little expensive, if the policy is 3 years old, he/she will be entitled to a premium discount of up to 35%. With the NCB protection cover, even though the policyholder makes 1-2 claims (depending on the policy's terms and conditions), NCB will not be affected. 

Also read - 

NCB Protection Cover Car Insurance FAQs

  • 1. Can my NCB protection cover be terminated by the insurance agency?

    Yes, your NCB protection cover can be terminated by the insurance provider. However, this can only happen if:

    • You make a fraudulent OD claim.
    • You conceal important information related to the accident.
  • 2. Can I get the same NCB protection cover for both my cars?

    The same cover will not apply to both cars. You will have to purchase two separate covers for each car. 

  • 3. Can I purchase NCB protection cover online?

    Yes, you can easily buy this add-on cover online as many car insurance companies offer the same online. 

  • 4. Will I still get my bonus without an NCB protection cover?

    Yes, unless you make a claim that year. The NCB protection cover lets you make claims and still enjoy your bonus. An NCB, on the other hand, is applicable even when you have not purchased the cover.

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