What Is The Full Form Of NCB In Insurance?
NCB Full Form in Insurance is No Claim Bonus. To put it simply, it’s nothing but a financial pat on the back you receive for not making any insurance claims during your policy year. Consider it a reward for driving cautiously and avoiding the need to tap into your insurance coverage.
Understanding How NBM Functions:
The equation is pretty simple here, the longer you maintain a claim-free record, the more substantial your discount becomes. It kicks off at 20% after one year without claims and can escalate up to an impressive 50-60% after five consecutive claim-free years. For instance, abstaining from claims for five straight years could slash your insurance premiums by up to 50%. And are you concerned about your NCB vanishing after all your careful driving? This is where the NCB Protection add-on steps in. By investing in this add-on, generally costing an additional 5-10% of your policy premium, you can shield your NCB.
The Impact of Claims on Your NCB
And yes, it’s crucial to note that not all claims will impact your NCB. Minor claims, such as those for windscreen repairs or incidents where you’re not at fault, and your insurer can reclaim the costs from another party, typically don’t affect your NCB. Just keep that in mind.