A car insurance policy is a way to protect your hard-earned possession.

With a car insurance policy, you put a shield against a financial loss that might come with the damage to the car. The annual premium is a small amount you pay to provide that shield.

Would you like to save on the annual premium year after year?

Yes, you can definitively save money on the car insurance policy premium with the No Claim Bonus (NCB).

What Is NCB in Insurance?

A NCB protection cover in car insurance is a discount offered to you when you do not lodge a claim throughout the policy period.

In simple words, as a policyholder of a car insurance policy, you get a discount on the premium for the next year, provided you do not lodge a claim during your policy tenure.

For instance, if you do not lodge a claim in the first year of your policy, you will get a 20% of discount on the premium of second year policy.

It’s a sure shot way to save money on the car insurance policy premiums.

You earn discounts for every claim free year. The percent of discount increases with the number of consecutive claim free year, which can go up to 50% discount on the premium.

Below table will show you the NCB slab on the number of claim free year:

No. Of Claim free YearsDiscount
One claim free year20%
Two consecutive claim free years25%
Three consecutive claim free years35%
Four consecutive claim free years45%
Five consecutive claim free years50%

Vehicles of over and above 5 years of age will retain 50% of discount on the premium as long as the owner does not claim. These discounts are availed under “No Claim Bonus” when you opt a comprehensive policy with Acko. However, if you lodge a claim at any time of your tenure, the NCB drops to Zero.

Here’s an example, Amit and Rahul bought same make and model vehicle. The premium for the comprehensive is same for the 1st and the 2nd year.



 Premium for 1st year (0% NCB)



Premium for 2nd year (20% NCB)




Amit, does not make any claim and keeps on receiving No Claim Bonus discount (refer NCB table as shown above). But Rahul makes a claim in the 2nd year.

For Rahul, NCB drops straight to Zero for the 3rd year premium and has to pay full amount as compared to Amit, who receives 25% discount as No Claim Bonus.

Premium for 3rd year:

Let’s assume, Rahul has registered a claim in the previous year so his NCB becomes zero, whereas, Amit did not claim so he has received a NCB of 25%.

Premium for 3rd year3,750 (Amit receives 25% NCB)5000 (Rahul makes a claim)


In such situations, NCB protections cover helps you to protect your bonus in the event of a claim.

What Is No Claim Bonus Protection Cover in Car Insurance?

As the name suggests, it is protection add on cover in motor insurance to protect your accumulated discount percentage from going back to zero, even if you lodge a claim.

Let’s understand with the same example:

Rahul makes a claim in the second year and thus, didn’t get No Claim Bonus.

For Rahul, No Claim Bonus drops down to zero, which means he had to pay full premium, whereas, Amit received 25% discount as No Claim Bonus.

Now, if Rahul had bought No Claim Bonus (NCB) Protection cover by adding a small additional amount to the base premium, he could have retained the NCB.

That means Rahul would also have received a discount of 25% even after lodging a claim in policy tenure.

With NCB Protection Cover:

Premium for 3rd year3,750 (Amit receives 25% NCB)3,750 (Rahul makes a claim and still receives 25% NCB)


The NCB Protection Cover cover helps you to retain the NCB and receive a discount as per the schedule even if you lodge a claim during a policy period.

Terms & Exclusions:

Maximum up to 1 (one) Own Damage (OD) claim during the policy year.
That means you retain NCB as per the slab only if you do not lodge more than one claim during policy tenure. If you make more than one claim, the NCB will drop to zero.

How Much Does A No Claim Bonus Protection Add-On Cost?

The cost of NCB Protection cover will be in the range 5-10% of your policy premium.

If you make no claim for 3 consecutive years, then you will get 35% of discount for the 4th year premium, and if you claim, you can lose 35% discount. But with NCB Protection cover you can retain this 35% of discount. Though you end up paying a higher premium, still, you save a considerable amount of money at the time of claim with the help of NCB Protection cover.

Who Should Opt No Claim Bonus Protection Cover?

  • Someone who owns a car.
  • Someone who drives safely
  • Someone who wish to save the reward of safe driving that is given in the form of NCB
  • Someone who has a car for more than 2 years and doesn’t want to lose on NCB.

It’s like you got a car, you got a No Claim Bonus (NCB) as a reward. And now you got to protect your reward – Protect NCB with No Claim Bonus Protection Cover.