No claim bonus is a discount for those policyholders who have not claimed against their insurance policy in the past year(s). This bonus increases year over year and can get up to 50% when the policyholders doesn’t make a claim. But if a claim is made in any year the NCB goes down to 0%.
This add-on provides that even if a claim is made, the policyholder is not deprived of NCB. He gets his NCB in same manner as he gets if he doesn’t make a claim.
However some conditions are generally attached for this add-on. Insurer generally provide that NCB is retented only in case of single claim in a year. Also this add-on is applicable if claim is only up to a certain percentage of IDV.
This add-on is generally available for private cars only.