When it comes to saving on your car insurance renewal, only a few things are as rewarding as NCB in a car insurance policy. It is a benefit that recognises your good driving record. It is a way insurers reward you for not making any claims during the policy term.
But what happens if you do have to make a small claim? That is where an NCB Protection cover comes into play. Understanding the difference between these two can help you make smarter, cost-effective decisions for your policy.
Table of Contents
Understanding the Basics of NCB in Car Insurance
The No Claim Bonus is a discount you earn on your own damage premium for every claim-free year. Typically, the discount starts at 20% after the first year and increases to 50% after five consecutive claim-free years. It is not just a one-time reward. It accumulates over time, significantly reducing your renewal cost.
For example, if your vehicle’s premium is around ₹20,000 and you have a 50% NCB, you will pay only ₹1,000 at renewal. This makes NCB one of the most valuable benefits of maintaining a clean driving record.
And the best part? When you buy or renew your car insurance online, most insurers automatically calculate and apply your eligible NCB during the renewal process, making it quick and transparent.
What is NCB Protection Cover?
An NCB protection cover is an add-on that helps you retain your accumulated bonus even after filing a claim. Normally, if you make any claim during the policy period, your NCB resets to zero. But with this add-on, you can file certain types of claims, like minor accidental damage or windshield repairs, without losing your bonus.
This feature is especially useful for drivers who have built up a high NCB over several years. The small extra cost of this add-on often saves a lot more in the long run.
NCB vs NCB Protection: Key Differences
| Feature | NCB | NCB Protection Cover |
| Purpose | Rewards you for no claims | Let’s you retain NCB even after limited claims |
| Eligibility | Claim-free years only | Optional add-on with comprehensive policy |
| Claim Impact | Resets NCB to zero | Keeps NCB intact after minor claims |
| Premium | Lower with high NCB | Slightly higher due to the add-on cost |
Is It Better to Protect the No Claim Bonus?
If you are a careful driver who rarely makes claims, NCB alone might serve you well. But if you live in a city with unpredictable traffic or park in public areas where minor damage is common, an NCB Protection Cover can be worth it.
It ensures that a single, small claim does not erase years of accumulated savings. It is like a strategic move, protecting your discount for future renewals rather than just for one policy term.
Conclusion
Whether you choose a standard NCB in car insurance or opt for an NCB Protection cover, it is ultimately about preserving the long-term value of your policy. Insurers like TATA AIG offer flexible car insurance plans where you can easily add or remove covers based on your needs.
With their simple car insurance online process, managing and protecting your NCB becomes effortless, helping you stay insured and save smarter, year after year.
