All About NCB Protector in Car Insurance

All About NCB Protector in Car Insurance - BimaBandhu

For every car owner in India, it is advisable as well as mandatory to buy car insurance at the time of vehicle purchase. Although it is up to you to decide if you want to buy Own Damage insurance cover, buying third-party car insurance is mandatory as per law. Still, not every car owner files a claim under the purchased policy during its tenure. This is where No Claim Bonus or NCB in car insurance plays a vital role.

You might have heard of NCB as a reward for not filing any claim during the policy year. You become ineligible to ask for NCB benefits in general if you file any claim. But what if we say that you can keep the hard-earned NCB intact even after you raise a claim? This is possible with the NCB Protector cover. Here, we will cover what NCB Protector means to help you understand its actual benefit.

What is NCB Protector in Car Insurance?

NCB Protector, also known as NCB Protection cover, is basically an add-on you can buy along with your comprehensive car insurance policy. It is meant to secure the NCB you accumulate in case of an OD or Own Damage claim.

In other words, buying the NCB Protector is a smart way to ensure that the accumulated NCB is not lost even after you file a claim. Since this add-on inclusion is not mandatory, it is up to you to decide if you want to include it on your base insurance policy. Amongst many other car insurance riders, NCB Protector cover is highly popular amongst the masses because it helps in ensuring a lower premium, based on the total NCB accumulated.

You should also know the following things related to NCB Protector cover:

  • If you want to renew or transfer your car insurance policy to some other insurance company, you can transfer the accumulated NCB.
  • In case you want to sell your car, you can choose to transfer your car insurance policy to the new car owner’s name while keeping the NCB to yourself. When you buy a new policy, this retained NCB can be added to it for continued discounts on the premiums payable. This may also require an NCB retention letter.
  • You may lose the NCB in case you fail to renew the car insurance policy within 90 days from its expiry date.

What are the Features and Benefits of NCB Protector?

The main benefit of buying NCB Protector in car insurance is that you will get a premium discount even after raising one or two claims. Keep in mind that the NCB protection cover is linked to the car owner and not the vehicle. 

What is the Cost of NCB Protector Cover?

Since the NCB Protector cover is an add-on or rider, you need to pay for it over and above the cost of the base insurance policy. You can only buy this add-on with a comprehensive car insurance policy. It also implies that you cannot buy this rider independently without having a base car insurance policy. 

In general, the premium of NCB Protector in car insurance ranges from 5-10% of the base policy premium, depending on the insurer you select. While some people think of this add-on as an expensive insurance purchase, it can help you save up to 35% of the premium renewal cost of your car insurance. 

Even if you file one or two claims (as defined in the policy terms), the NCB will not be affected under this add-on. Hence, you will be eligible to get the premium discount on car insurance policy renewal. 

Who needs NCB Protector Cover?

As detailed above, the NCB Protector in car insurance is suitable for all those car owners who wish to avail of premium discounts even after filing one or two insurance claims (exact terms depend on the policy chosen). Inclusion of this add-on to the base car insurance policy is highly beneficial for expensive cars to get premium discounts.

How does NCB Protector Work?

NCB Protector coverage acts as an extra layer of protection for your car insurance policy. Let’s assume you buy a comprehensive car insurance policy which makes you entitled to NCB. In case you file a claim during the policy period, you will lose this NCB. But if you also purchased NCB protector in car insurance, the renewal discount via NCB will not be lost even after you file one or two claims.

More About Transfer of NCB

For every claim-free year, you become eligible for the No Claim Bonus in the form of a premium discount at the time of policy renewal. In case you want to sell your car or buy a new car, you can get the NCB transferred to your new car insurance policy. Besides this, NCB transfer is also possible at the time of migrating your policy to a new insurance company. 

However, you should keep in mind that you cannot transfer NCB to the new buyer. Also, for the successful transfer of NCB, the new insurer will do a background check to check if you have actually earned NCB with the previous insurer.

Documents required to Transfer NCB

  • Application for NCB transfer
  • A copy of the car insurance policy
  • Buyer-seller agreement
  • A copy of the delivery note (while selling an old car)
  • A copy of the booking receipt (while buying a new car)
  • NCB certificate, and similar others if required

More About Termination of NCB

NCB mainly gets terminated by the insurer in case you, as a policyholder, file a claim during the policy tenure. The claim can be related to either damage cover in case of an accident or medical emergency cover. But if you have included NCB Protector cover in your policy, NCB will not be terminated in such situations.

Similarly, if you fail to renew your car insurance within 3 months from its date of expiry, then NCB can be terminated by your insurer. It also implies that you allow the policy to lapse, irrespective of the accumulated NCB.

Lastly, if you fail to transfer the NCB to a different insurer or a new car insurance policy within a specific period, it is most likely to get terminated.

More About Validity Period of NCB

As a policyholder eligible for No Claim Bonus, you can avail it either at the time of existing policy renewal or while transferring it to a new car insurance policy. After becoming eligible for NCB for a claim-free year(s), the privilege to use it for a premium discount is valid for 2 years. If you want to protect the NCB even after the likelihood of one or two claims in the policy year, you are advised to buy the NCB Protection add-on.

How is NCB Affected in Case of an Accident or Theft?

It is up to the insurer to retain or terminate NCB of the policyholder after a claim is filed. In case of the claims filed after accidents in which you are not at fault, the insurer tries to get the cost of damages covered by the third party. On succeeding to get the expenses covered this way, the insurer will retain the NCB of the policyholder.

On the other hand, if the insurance company is unable to get the expenses covered by the other party, the company will incur the cost themselves and is most likely to withdraw the NCB.

The theft cases are dealt with in a similar manner. It means that if the insurer has to pay for the compensation of your stolen car, whether you are at fault or not, then the NCB will be terminated.

What is NCB for Commercial Vehicles?

Commercial companies who own a fleet of vehicles run by different drivers usually buy the NCB Protection in the name of their drivers or employees. However, the facility to avail of premium discount related to NCB is limited to the company. It means the driver cannot use the NCB of a commercial vehicle on his private car insurance. In case he tries to do so, the insurance company can deny the request to use the NCB for a reduction in premium.

When is NCB Protector Not Applicable?

While you keep on learning more about the benefits of NCB Protector, it is also important to read the fine print of this add-on and understand what it will not cover. In many cases, NCB Protection cover is not applicable when:

  • You exceed the number of claims allowed under the chosen add-on 
  • You fail to renew the policy within 90 days of its expiry (it will make the NCB drop to 0%)
  • You want to add or remove NCB in the midterm
  • You choose to get the vehicle repaired in an unauthorized garage
  • You make fraudulent OD claims or misrepresent the facts related to a claim

You should also know that the extent of coverage and benefits of NCB Protector will vary from one insurer to another. Hence, it is quite crucial to compare different car insurance policies and also the related NCB protection rider before buying them. To know more about how to compare car insurance policies, don’t forget to read BimaBandhu.


Is NCB Protector coverage offered by all the car insurance companies in India?

Most of the car insurers in India offer NCB Protection cover as an add-on. For more details in this regard, you are advised to connect with the insurer of your choice.

Can I use my NCB on multiple cars or two different cars?

NCB is applicable to one car and one car insurance policy. While you cannot use the NCB feature for multiple cars, you can transfer it from one policy to another.

Is it necessary to buy NCB Protector in car insurance?

No Claim Bonus is more of an intrinsic benefit of every car insurance policy. However, if you want additional benefits, you need to buy the NCB Protector add-on.

Is NCB applicable to third-party insurance?

NCB is only offered on the Own Damage cover of car insurance. In case you have only purchased third-party car insurance, you cannot avail this benefit. Similarly, dropping any of the other add-ons linked to your car insurance policy will not affect the accrued NCB. 

Can I buy NCB Protector online?

You can select this add-on at the time of buying car insurance online. 

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