The NCB in Car Insurance: What is it?
You go an entire year without getting into any wrecks or filing any insurance claims, giving you a pristine driving record. Since the expiration date of your insurance coverage is drawing closer, it is time to renew it. Your auto insurance provider considers you to be a low-risk driver, and they would like to express their gratitude in advance for the fact that you have not made a claim. When you decide to renew your coverage with the insurance company, you will receive a discount. There is a sort of compensation that is offered by several vehicle and motorcycle insurers called a no-claim bonus in car insurance.
Advantages of Protected NCB in Car Insurance
A Protected No-Claim Bonus is an additional feature that policyholders can opt for in their car insurance policy that allows them to retain their NCB even if they file a claim. Here are a few advantages of a protected no-claim bonus in car insurance in India:
Retention of NCB: The primary advantage of a Protected No-Claim Bonus is that it allows policyholders to retain their NCB even if they file a claim during the policy term. In the absence of a Protected NCB, a policyholder's NCB gets reset to zero if they file a claim, resulting in higher premiums in subsequent policy years. By opting for a Protected NCB, policyholders can ensure that their NCB remains intact and that they continue to enjoy lower premiums.
Cost Savings: A Protected NCB can lead to significant cost savings in the long run. The NCB discount can range from 20% to 50%, depending on the number of claim-free years. By retaining the NCB, policyholders can save a considerable amount on their premium payments, especially if they have a high-value car.
Flexibility: A Protected NCB gives policyholders the flexibility to file a claim when they need it without worrying about losing their NCB. This can be especially beneficial in situations where the cost of repairs exceeds the NCB discount, making it more cost-effective to file a claim rather than pay for the repairs out of pocket.
Transferability: A Protected NCB is transferable if the policyholder decides to switch insurers. This means that if a policyholder has a Protected NCB with one insurer and decides to switch to another insurer, they can transfer their NCB to the new insurer and continue to enjoy the benefits of a Protected NCB.
How to Keep The No-Claim Bonus Once Someone Has Made a Claim?
If you want to maintain your no-claim bonus (NCB) after making a claim, you will need to purchase no-claim bonus protection in addition to full-coverage insurance at some extra cost. This particular vehicle insurance coverage allows you to submit up to two claims each year without having the amount of your no-claims bonus reduced.
Conclusion
You receive extra comfort from an NCB Protect cover. It keeps the bonus part of the insurance even if some claims are made during the period (depending on the terms and conditions). You can choose NCB protection car insurance to get the renewal discount even if you made a claim (or more than one claim) during the time. The Park+ app can help you manage all your car insurance policies in one place. Read here to know more.