No Claim Bonus is a discount percentage applied to your renewal policy if you have not applied for any claim during the last policy year. 

The prevalent ‘No Claim Bonus’ for motor insurance policies ranges from 20% to 50% of your renewal premium. This discount is transferable, which means it can be transferred even though the policyholder purchases a new vehicle.

‘No Claim Bonus’ is one of the primary benefits of motor insurance policies. It encourages the insured to take good care of their vehicle and avoid any claims. If you go many years without filing a claim, you might be eligible for an NCB discount of up to 50%.

How can you determine the No Claim Bonus?

The No Claim Bonus is available beginning with the second year of the policy era. After the first year, if no claims are filed, the insurance company will give you a 20% discount on your premium. This starts in the second year and will continue for up to five years. 

Here is a simple table to illustrate this: 

No. of years

No Claim Bonus Percentage

After one year of no claim


After two consecutive years of no claim


After three consecutive years of no claim


After four consecutive years of no claim


After five consecutive years of no claim


Note: Under the following conditions, the No Claim Bonus feature will no longer apply to your policy:

  • If a claim is filed in any particular policy year
  • If a policy is not extended within 90 days of its expiration date