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Let's Check the Benefits of No-claim Bonus Protection Add-on Cover in Car Insurance

By Juhi Walia
19 August 2022, 10:32 AM

The NCB is a bonus on your policy that you receive as a reward for driving safely. It increases with each passing year but returns to zero if you file a single claim. Moving from 20% to a maximum 50% discount, the NCB provides a significantly lower price on your insurance while giving you the same benefits. 

When you raise a claim, a no-claim bonus (NCB) protect cover safeguards your hard-earned incentives. It is one of the most vital protection covers available as an add-on to your car insurance policy.

Certain terms and conditions do apply, like you can claim for a maximum of two times during the policy term, besides the additional premium required for this coverage. But the extra premium payable is much lower compared to the coverage benefits you will have with NCB protection cover in car insurance. Let's look at the cover and its benefits.

No-claim Bonus Protection Cover - What is it?

Car insurance with an NCB protection cover offers you a way to ensure your bonuses remain intact if your car is damaged and you need to file a claim. It is a given that NCB protection cover is generally the preferred one among the various car insurance add-on policies offered by insurers. A reduction in the renewal premiums will result in the policyholder receiving financial relief based on the bonus they have earned throughout the policy year.

You qualify for low premiums starting in the second year. An NCB protection cover costs about 5% to 10% of your base car insurance policy, but you can save significantly in the long run, thanks to the accumulated NCB.

What You Need to Know About NCB?

  • The NCB Protect cover makes it easy to transfer the accumulated NCB to another insurer if you want to renew/transfer your car insurance policy.
  • You may be able to transfer your policy from your name to the name of the buyer depending on the terms of the policy so that you do not lose out on the NCB. If you have an NCB, you can keep it till you are ready to buy a new policy.
  • Once you have new car insurance, you can add the NCB to the new one to continue getting discounts on your premiums. You must submit a letter of retention for the NCB to accomplish this.
  • If you initiate a claim, the accumulated NCB will be used for settling the claim unless you enroll for NCB protection, which allows you to keep your NCBs despite claims.
  • The accumulated NCB is lost 90 days after the expiration of the policy. So, it's important to renew the policy on time.
  • It is not possible to earn NCBs if your car insurance policy is cancelled before it expires.

Who Needs NCB Protection Coverage?

The no-claim bonus protection cover can help car owners receive premium discounts on their car insurance policy when they own expensive vehicles, even if they are forced to file a claim for damages.

Additionally, if you live in an accident-prone or flood-prone area, it is recommended that you opt for the NCB protection cover to ensure that your NCB is not affected by such events in the future. Because of the increased likelihood of making a claim, it is best to keep your NCB intact as long as possible. 

Situations Where the NCB Protector Cover Does Not Apply

Read the fine print if you want to know what is not covered in your motor insurance policy. This add-on may not be appropriate in many cases:

  • No-claim bonuses will not be available if an insured makes more claims than allowed under the NCB protection cover.
  • The NCB will drop to 0% if the policy is not renewed within 90 days of expiration.
  • NCB protectors are not usually included or removed from the policy mid-term.
  • Vehicles must be repaired by authorised garages/networks.
  • If any fraudulent or misrepresented claims have been made regarding ODs, the NCB will be cancelled.

Each insurer provides different coverage and benefits. Before choosing a policy, make sure you compare all the available options thoroughly. 


You are provided with extra cushioning when you use an NCB protect cover. The bonus component stays intact if some claims are made during the policy period (depending on the terms and conditions). 

Read more -


1. What is the NCB protection add-on?

In addition to the motor two-wheeler insurance policy, the NCB protector is also available. By purchasing this add-on cover, the policyholder is protected from losing the NCB discount he is eligible to receive at renewal if a claim is made during the policy year.

2. Is it worth getting an NCB protection cover?

A no-claim bonus can reduce your annual insurance premium. As a reward for safe driving and for not filing any claims in the preceding year, the NCB can make your insurance plan more lucrative. The NCB protection cover acts as a safety net should you find yourself in a situation where you're forced to claim. 

3. What is the point of no claims protection?

The no-claim bonus protection cover prevents policyholders from losing their discount if they claim their car insurance. There are limitations on how many claims you can make during a given time frame and retain the discount. 

4. Can you tell me how much benefit it gives me?

An insurance company awards a no-claim bonus to policyholders who do not claim during a policy year. Bonuses range from 20% to 50% per year without a claim. As a result of this benefit percentage, the premium for the following year is discounted. So, you can imagine the premium reduction for you with NCB protection cover.

5. Can I buy an NCB protection cover online?

Yes, you can buy the same online. You can buy the NCB protection cover while buying the base car insurance policy or on renewal.

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