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Vehicle Insurance NCB Tracker
IRDAI-mandated NCB ladder: 20% discount after the 1st claim-free year, rising to 50% after 5 years. Resets to 0 the year you claim.
NCB ladder
| Years | Discount |
|---|---|
| 0 (1st year) | 0% |
| 1 | 20% |
| 2 | 25% |
| 3 | 35% |
| 4 | 45% |
| 5 | 50% |
How the NCB ladder works
The IRDAI-mandated No-Claim Bonus ladder rewards claim-free years with rising discounts on your Own Damage (OD) premium at renewal — not on the Third-Party (TP) component, which is statutory and uniform across insurers. The ladder: 20% after Year 1, 25% after Year 2, 35% after Year 3, 45% after Year 4, 50% after Year 5. It stays at 50% from Year 6 onwards. File even one claim and the entire NCB drops to zero at the next renewal — unless you bought an NCB Protect add-on, which preserves the slab for 1–2 claims a year.
Worked example
A car with IDV ₹6 lakh has an OD premium of about ₹14,000 in Year 1. After 5 claim-free years the OD premium drops by 50% to ₹7,000 — you save ₹7,000 per year. Now consider a minor ₹15,000 dent claim in Year 4: you collect ₹15,000 minus the ₹1,000–₹2,000 deductible, but lose the NCB ladder. Renewal premium jumps back to ₹14,000 — a ₹7,000 hit, and you lose the progressive build-up over the next 5 years. Most small claims are not worth filing.
When to use this
- Deciding whether to file a small ₹5k–₹25k own-damage claim or pay out of pocket
- Selling a car — you can transfer NCB to a new vehicle within 90 days via the NCB retention letter
- Switching insurers at renewal — the NCB stays with you, not the insurer, so always carry it across
For the on-road price math that feeds your IDV, see RTO Tax Calculator or our blog on on-road vs ex-showroom price.
FAQ
Does NCB transfer if I switch insurer?
Yes — request an NCB Reserving Letter from the old insurer when switching. The new insurer carries the same NCB ladder.
NCB transfer if I sell my car?
NCB is tied to the insured person, not the vehicle. When buying a new car, your NCB carries over within 3 years. The new owner of your old car starts at 0% NCB.
Is "NCB protection" rider worth it?
Costs ~5-7% extra premium. Lets you claim once without losing NCB. Worth it if you have 35%+ NCB built up — losing 35% is more than 5% protection cost over 5 years.