All About NCB in Multi-year Car insurance Policy

All About NCB in Multi-year Car insurance Policy The benefit of the no claim bonus For the uninitiated, the NCB is a feature offering a discount/ bonus to the policyholder when they do not raise any claims during the policy term. In a regular car insurance policy where the policy is active for a year only, the NCB can be availed on the premiums of the following year. The longer you do no raise a claim, the higher is the discount you are eligible for. The discount you can get for the first claim-free year could go up to 20% and then keep on increasing until it reaches the maximum discount limit set by the insurer. Risk losing NCB if policy is not renewed on time It is to be noted that the NCB gets transferred from one policy term to another policy term only if the car insurance renewal is done on time. If the policy is not renewed even within the grace period from the expiry date of the previous policy term, the NCB is lost. Since there is no yearly renewal process within a multi-year can insurance policy, the risk of losing the NCB in this manner goes Source : iffcotokio.co.inh