Insurance
No Claim Bonus
pronounced: [N-o- -C-l-a-i-m- -B-o-n-u-s]
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No Claim Bonus, or NCB, is a benefit offered by health and motor insurance policies that rewards the policyholder with a discount on the next year's premium or an increase in the sum insured for every claim-free year.
In health insurance, NCB typically increases the sum insured by 10% to 50% of the base cover for each claim-free year, up to 100%. In motor insurance, NCB is a discount of 20% to 50% on the own-damage premium, which can be ported to a new vehicle or insurer.
Key Facts
| Fact | Value |
|---|---|
| Interest Rate | 10% p.a. |
| Maximum Limit | ₹100 |
Example
A ₹5 lakh personal loan at 10% p.a. for 3 years has an EMI of ₹16,607/month. Total payment = ₹5,97,852, of which ₹97,852 is interest.
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Last updated: 2 June 2026