No claim bonus is given at the time of renewing car insurance. Who gets What is no claim bonus
This and how does it save money? Let us know.
Insurance is essential for the safety of vehicles. Often, when it comes to insurance, a No Claim Bonus (NCB) is provided. In this news, we are telling you what NCB is and how savings can be made while renewing the policy. Let's find out.
When renewing car insurance companies often provide special discounts. This discount is commonly known as a "No Claim Bonus" (NCB). Many people also refer to NCB by its acronym, NCB.
When does NCB MEET
After purchasing a car, insurance is obtained, which is valid for one year. During the validity of the policy, if no claims are made to the insurance company, and the policy is renewed after one year, then a No Claim Bonus (NCB) is provided.
How is saving done
When an individual renews their car insurance policy, the insurance company gathers information about whether any claims were made during the validity of the policy. If no claims were made, the company provides a discount as a bonus at the time of policy renewal. This bonus, known as No Claim Bonus (NCB), results in a reduction in the premium amount, leading to savings. In this way, NCB serves as a financial benefit for policyholders who have maintained a claims-free record during the policy period.
When and how much does NCB get?
If you don't make any claims during the first year after purchasing a car, you are eligible for a 20% discount on the premium when renewing the policy. Following this, each subsequent claim-free year earns you a 5% additional discount. The No Claim Bonus (NCB) can accumulate to a maximum of 50% by the sixth consecutive claim-free year.
By Kuldeep
