How to Retain Your Car Insurance “No Claim Bonus” When Changing Insurers?

Summary: 

• A No Claim Bonus (NCB) is a form of “premium discount” offered up to 50%. 

• NCB applies only to the “Own Damage (OD)” portion of comprehensive motor vehicle insurance policies. 

• Through portability, you can switch between car insurers without losing your accumulated NCB benefits. 

• Missing renewal deadlines beyond 90 days can permanently cancel accumulated NCB benefits. 

• Even minor claims can reset NCB to zero. 

Looking to change your car insurance company in 2026? 

It does not mean you have to start over. “Car insurance portability” allows you to move from one insurer to another while keeping the benefits you have already earned, such as your No Claim Bonus (NCB). 

Usually, car owners switch insurers for many reasons. You may: 

• Be dissatisfied with customer service 

• Want different policy features 

• Wish to reduce your premium 

Portability gives you the option to change providers without starting a new insurance history.  

Want to learn how? 

Read this article to understand how you can switch insurers without losing your car insurance no claim bonus. But first, let’s see the no claims bonus meaning and the maximum savings you can avail of (via NCB accumulation) in 2026. 

What is No Claims Bonus (NCB) 

NCB is a discount offered by car insurance companies to policyholders who do not make any insurance claims during the policy period. It is a reward for driving without filing claims. 

The NCB discount increases each year (could reach up to 50%) if no claims are made.  

However, if you file even a minor claim during the policy year, the NCB becomes zero at the time of renewal. As a result, you lose the accumulated discount for the next policy term. 

Furthermore, NCB applies only to the Own Damage (OD) part of a full coverage car insurance (comprehensive policy). Note that: 

• It does not apply to the Third-Party Liability portion of the premium and
• It is not available with a standalone third-party policy.

Want to know how much you can save while porting? 

Below is a standard NCB accumulation slab chart, followed by most motor vehicle insurance companies in India:

The car insurance no claim bonus is earned only after you complete a full policy year without making any claims. This discount is applied at the time of policy renewal (not during the first policy term).  

For more clarity, let’s study an example related to calculating car insurance premiums. 

Example 

Assume your Own Damage (OD) premium is ₹10,000 every year. Let’s see how your NCB increases with each claim-free year and how it reduces the Own Damage premium at renewal. 

Important Note: If a claim is made in any year, the NCB resets to zero at the next renewal,  and the discount must be earned again from the beginning. 

How to Switch Insurers Without Losing NCB in 2026? 

Realise that a car insurance no claim bonus is linked to the vehicle owner (not the insurer). When you renew or switch insurers, the accumulated NCB can be carried forward, provided the policy remains claim-free. 

Want to know the process? 

Follow these steps to retain your NCB while porting: 

Step I: Request an “NCB Certificate” 

After your existing policy expires or is cancelled, ask your current insurer to issue an NCB certificate. This document confirms that no claims were made during the policy term. 

Step II: Submit the Certificate to the New Insurer 

Share the NCB certificate with the new insurer at the time of buying or renewing your policy. This is usually done digitally through an online upload.

Step III: NCB Verification 

The new insurer checks your NCB details using the “central insurance database” maintained by IRDAI. This confirms the accuracy of your claim-free history. 

Step IV: NCB Discount Applied 

Once verification is complete, the applicable NCB discount is applied to the Own Damage portion of your premium. 

Step V: Continuity of NCB 

Your NCB remains valid even if you: 

• Change your car
• Move to a different city
• Switch insurance companies 

The only requirement is that you remain claim-free and renew within the allowed time period. 

Which Documents are Needed to Transfer Your Car Insurance No Claim Bonus? 

When you transfer your NCB to a new car insurance cover provider, the insurer requires several documents to confirm your: 

• Ownership
• Policy history
• Claim-free record 

Through these documents, a new insurer verifies that the NCB being transferred is valid and belongs to you. Let’s have a look at the list of required documents: 

• NCB Transfer Application: It is a formal request submitted to transfer your existing NCB to a new policy. 

• Copy of Previous Car Insurance Policy: It is used to confirm policy details + coverage history. 

• Vehicle Sale Agreement: It is required when the insured vehicle has been sold or ownership has changed. 

• New Car Booking Receipt: It is required if the NCB is being transferred to a newly purchased vehicle. 

• NCB Certificate from Previous Insurer: It shows that no claims were made during the policy period and that the NCB is valid. 

Note: The exact set of documents may vary between insurance companies. 

What are the Situations That Lead to the “Loss of NCB”? 

The car insurance no claim bonus is not granted under the following situations: 

I) Claim Raised During the Policy Year 

If the policyholder files any claim during the policy period, the NCB becomes zero at the next renewal. 

II) Policy Not Renewed Within the Allowed Time 

If the policy is not renewed within three months (90 days) from the expiry date, the accumulated NCB lapses and cannot be recovered. 

III) NCB Not Transferred Within the Prescribed Period 

If the policyholder fails to transfer the NCB to a new insurer or new vehicle within the allowed time, the NCB becomes invalid. 

IV) Accident With Pending Recovery 

If an accident claim is raised and the insurer has not recovered the loss amount from the responsible third party, the NCB is cancelled. The NCB may be restored only if the insurer later recovers the full claim amount from the guilty party. 

Conclusion 

So now you know what a car insurance no claim bonus is and how to retain it when switching insurers. If we were to recap, NCB is a discount offered by insurers as a “reward” for not making any claims during the policy period. This discount applies only to the Own Damage (OD) component of a comprehensive car insurance policy and is given at the time of renewal.

The NCB starts at 20% after one claim-free year and increases progressively to 25%, 35%, 45%, and up to a maximum of 50% after five consecutive claim-free years. When porting your car insurance policy, this accumulated NCB does not get lost if you follow the correct process.  

And what’s that? 

You must request an “NCB certificate” from your existing insurer after policy expiry or cancellation and submit it to the new insurer during renewal. 

Want to renew your car insurance online in 2026? 

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