Unlock Savings: Understanding the No Claim Bonus in Car Insurance

A No Claim Bonus (NCB) can significantly reduce your car insurance premiums for each claim-free year. However, filing a claim can jeopardize this discount. This article explores the NCB concept, its benefits, and how TATA AIG helps protect your bonus. Learn essential tips to retain your NCB and ensure you maximize your savings during policy renewals. Discover the importance of understanding your No Claim Bonus and how to make informed decisions when purchasing or renewing your car insurance.

By Narendra Chaudhary Nov 6, 2026, 16:03 IST

What is a No Claim Bonus?

A No Claim Bonus (NCB) is a discount on your car insurance premiums that rewards you for each year you go without making a claim. However, if you do file a claim, it can affect the discount you have accrued, making it crucial to safeguard this benefit for more affordable policy renewals.

Understanding the No Claim Bonus

The No Claim Bonus is essentially a reward from your insurer for not filing any claims in the previous year, applicable to both online and offline car insurance policies. This bonus typically manifests as a discount on your premium during the renewal of your policy. The NCB accumulates for every consecutive claim-free year, offering discounts that range from 20% to 50% over a span of one to five years.

The following table illustrates the NCB slab rates approved by the IRDAI for car insurance:

Policy Age	No Claim Bonus
Not filing a claim after 1 year	20%
Not filing a claim after 2 years	25%
Not filing a claim after 3 years	35%
Not filing a claim after 4 years	45%
Not filing a claim after 5 years	50%

Note: These rates are standardized by the IRDAI and apply uniformly across all insurers.

Impact of Claims on Your NCB

Here’s how a claim can affect your NCB:

Loss of NCB: Filing a claim for damages during your policy period results in the loss of your accumulated No Claim Bonus at the time of renewal.
Increased Premiums: Without the NCB discount, you may face higher premiums upon renewal.

How TATA AIG Safeguards Your NCB

TATA AIG offers several features to help protect your No Claim Bonus:

No Claim Bonus Protection Cover: This add-on allows you to keep your accumulated NCB even after making a claim.
Extended Eligibility: The NCB Protection add-on is applicable for vehicles up to 10 years old.
90-day Grace Period: To avoid losing your NCB, TATA AIG provides a grace period of up to 90 days post-policy expiry for renewal.
Convenient Renewals: TATA AIG sends timely reminders and offers online renewal options via their website or mobile app, making the process quick and easy.
24/7 Customer Support: For any issues during renewal or inquiries, TATA AIG’s customer service is available around the clock at 022-6489-8282.

Tips for Retaining Your No Claim Bonus

To ensure you keep your No Claim Bonus intact, consider the following tips:

Transfer your NCB to your new vehicle's insurance policy when purchasing a new car.
Adhere to traffic regulations and practice safe driving to minimize the likelihood of accidents and claims.
Renew your car insurance before it expires or within the grace period to maintain your NCB.
For minor repairs, consider paying out of pocket instead of filing a claim.
Regularly maintain your vehicle to reduce the chances of accidents and damage that could lead to claims.
Add the NCB protection feature to your policy to safeguard your accumulated bonus.

Secure Your No Claim Bonus with TATA AIG

By protecting your No Claim Bonus, you can significantly reduce your insurance premiums during renewal. The NCB protection add-on from TATA AIG ensures that you retain your bonus even after a claim. This add-on is available for cars up to 10 years old, and you can easily access your policy details through their website or mobile app. Explore TATA AIG's car insurance options to find the right protection that meets your needs.