Four Wheeler Insurance Policy

When diving into the intricacies of a four wheeler insurance policy, understanding the concept of No Claim Bonus (NCB) is paramount for policyholders. This bonus is a critical factor for those looking to maximize the benefits of their insurance policies, as it directly impacts the premium amount for the subsequent years. 

This article delves into the nuances of NCB, providing a comprehensive guide for anyone looking to make informed decisions about their four wheeler insurance policy.

The Essence of NCB in Four Wheeler Insurance Policy

At its core, the No Claim Bonus is a reward mechanism adopted by insurance companies to incentivize safe driving. Policyholders who do not make any claims during the tenure of their policy are eligible for this bonus, which is applied in the form of a discount on the premium during renewal. 

The NCB is a pivotal element in the insurance domain as it embodies a win-win situation – promoting prudent driving behavior while making insurance more economical for diligent drivers.

The Calculation of NCB: A Closer Look

The calculation of NCB is straightforward, yet, it is pivotal for anyone holding a four-wheeler insurance policy. Indeed, it’s noteworthy that the NCB percentage increases with each consecutive claim-free year. Typically, it starts at 20% for the first claim-free year and can go up to a maximum of 50% after five consecutive claim-free years. Here’s a quick rundown of how the NCB percentage escalates over the years:


  • First claim-free year: 20%
  • Second consecutive claim-free year: 25%
  • Third consecutive claim-free year: 35%
  • Fourth consecutive claim-free year: 45%
  • Fifth consecutive claim-free year and onwards: 50%


It’s crucial to understand that the NCB is applied to the own-damage component of the insurance premium and not to the third-party liability portion. This distinction is vital as the own-damage premium constitutes a significant part of the total premium for comprehensive insurance policies.

The Implications of NCB on Your Four Wheeler Insurance Policy

The financial benefits of maximizing your NCB can be substantial. For instance, a 50% NCB can halve the own damage premium, leading to considerable savings. These savings become increasingly significant over time, especially for high-value vehicles where the premiums are naturally higher.

It’s also essential to note that the NCB is linked to the policyholder and not the vehicle. This means that if you decide to sell your vehicle and purchase a new one, you can transfer the NCB to your new vehicle’s insurance policy. This transferability adds a layer of flexibility and continuity in the benefits accrued from safe driving practices.

Protecting Your NCB: The NCB Protector

Many insurers offer an add-on cover known as the NCB Protector. This cover allows you to make a certain number of claims without affecting your accumulated NCB. Opting for an NCB Protector can be a prudent decision, especially if you have accumulated a high NCB percentage. However, it’s important to weigh the cost of this add-on against the potential savings from maintaining your NCB at a high level.

The Role of Insurance Aggregators in Navigating NCB

In today’s digital age, consequently, insurance aggregators like Digibima have emerged as a vital tool for policyholders. These platforms offer a one-stop solution for comparing different four wheeler insurance policies, including aspects like NCB benefits, premium costs, and additional covers. By leveraging such platforms, you can make an informed decision that aligns with your specific needs and preferences, ensuring that you get the best possible deal on your insurance policy.

Key Takeaways for Policyholders

  • Understand the NCB Structure: Familiarize yourself with the NCB percentage increments and how they apply to your policy.
  • Drive Safely: Safe driving not only ensures your safety but also maximizes your NCB, leading to lower premiums.
  • Consider NCB Protector: Evaluate the benefits of an NCB Protector, especially if you have a high NCB percentage.
  • Utilize Insurance Aggregators: Platforms like Digibima can simplify the process of comparing and choosing the right insurance policy.
  • NCB Transferability: Remember that your NCB is transferable to a new vehicle, preserving the benefits of your safe driving record.


The No Claim Bonus is a significant factor in the realm of four-wheeler insurance policies, offering a tangible reward for safe driving. By understanding and strategically managing your NCB, you can significantly reduce your insurance premiums over time. 

In this context, insurance aggregators play a crucial role in helping policyholders navigate the complexities of insurance policies, ensuring they make the most out of their insurance investments. Armed with this knowledge, you are now better equipped to manage your four wheeler insurance policy effectively, ensuring maximum benefit and cost efficiency.

FAQ Section

Q1. What is No Claim Bonus (NCB) in Four-Wheeler Insurance?

No Claim Bonus (NCB) is a reward given by insurance companies to policyholders who do not make any claims during the policy tenure. Consequently, it is offered as a discount on the renewal premium for the subsequent year.

Q2. How is NCB Calculated?

NCB is calculated as a percentage discount on the own damage portion of the insurance premium. It starts at 20% for the first claim-free year and can go up to 50% for five consecutive claim-free years.

Q3. Can I Transfer My NCB to a New Vehicle?

Indeed, the No Claims Bonus (NCB) is linked to the policyholder, not the vehicle. This means you can transfer your NCB to a new vehicle’s insurance policy if you decide to change your car.

Q4. What Happens to My NCB if I Make a Claim?

Consequently, making a claim will typically reset your No Claims Bonus (NCB) to zero. However, you can protect your NCB by opting for an NCB Protector add-on, which allows a certain number of claims without affecting your NCB.

Q5. How Do Insurance Aggregators Like Digibima Help in NCB Calculation?

Insurance aggregators like Digibima help by providing a platform to compare different four wheeler insurance policies, including their NCB benefits. This approach enables you to make an informed decision. You can select a policy that offers the best NCB benefits. Your choice will be based on your driving history and needs.