How does car insurance claim affect NCB (No Claim Bonus)?

Asked 1 Mar 2026·2876 views

I have a comprehensive car insurance policy for my Honda City with 5 years of NCB accumulated (50% discount on premium). I raised a claim for bumper damage costing ₹18,000 last month. Will my NCB be reduced to zero? If I transfer my policy to a new vehicle, does the NCB carry over? Should I avoid claiming and pay out of pocket to protect my NCB?

Asked by Rajesh Kumar

2 Answers

Yes, raising a claim will reduce your NCB. The NCB structure is: 0 years = no discount, 1 year = 20%, 2 years = 25%, 3 years = 35%, 4 years = 45%, 5+ years = 50%. Your 5-year 50% NCB will drop to 0% after one claim. The premium increase due to losing NCB (from 50% discount to 0%) on a Honda City will be approximately ₹8,000-12,000 extra per year for the next 5 years — more than your ₹18,000 claim cost. For minor damages under ₹15,000-20,000, it is almost always better to pay out of pocket.

Answered by Anita Desai · 8 Mar 2026

NCB does not transfer to a new vehicle unless you are renewing within 90 days of expiry or the policy is continuous. You can transfer NCB to a new car of the same owner within the same insurance company, but it cannot be transferred to a different person or a different insurer (though insurers may offer a discount for prior NCB at their discretion).

Answered by Rajesh Kumar · 1 Mar 2026