No-Claim Bonus (NCB)
A discount or bonus cover you earn for each year you don't make a claim.
A discount or bonus cover you earn for each year you don't make a claim.
In motor insurance, NCB is a discount on your own-damage premium that grows each claim-free year, typically starting around 20% and reaching a maximum of 50% after several years. It belongs to you as the driver/owner, not the vehicle, and can be transferred when you buy a new vehicle.
In health insurance, NCB typically works differently — instead of a premium discount, many insurers increase your sum insured for each claim-free year (a “cumulative bonus”), effectively giving you more cover for the same premium over time.
Example
A car owner with 4 continuous claim-free years might have a 35-40% NCB discount on their own-damage premium — filing a small claim can reset this and cost more in lost future discount than the repair itself.
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