No-claim bonus (NCB) is a discount in OD premium offered by vehicle insurance companies on car insurance. This bonus applies only if an Insured has not made a single claim during the term of the car policy. The NCB slab is set at (GR 27). You are entitled to an NCB only at the time of policy renewal. Moreover, this bonus applies only to new car insurance policies, and each policy tenure is 12 months.
You can transfer a No Claim Bonus on another new car insurance policy subject to you having an NCB Reserving Letter.
You are ineligible for an NCB in these two situations:
1. In case there is a break of more than 90 days between policy renewals.
2. In case the ownership of the vehicle and its insurance is transferred to you.