Will You Lose NCB for a Small Claim?
Yes, you will lose NCB on a small claim, and the accumulated NCB will be reset to zero at renewal. Here are the key things to note:
1. The size of the claim doesn't matter.
2. If you file a claim under Own Damage, NCB will reset.
3. With a No Claim Bonus Protector add-on, you will be allowed to file up to 1-2 claims in a year without losing the benefits.
4. If you file a claim under third-party damage and not own damage, your accumulated NCB will remain unaffected.
Read More on: Standalone own damage car insurance.
How to Decide Whether to File a Small Claim?
Generally, it is advisable not to file a small claim if you can afford the cost of repairs. However, if you're planning to file the claim, here are some key factors to consider:
1. Make sure to calculate the repair cost.
2. Calculate the impact on NCB on how much premium you'll lose.
3. Compare the long-term impact.
You should file an NCB claim only under the following scenarios:
1. Major damage due to an accident
2. Structural or engine damage
3. Theft
4. Repair costs exceed NCB benefits.
As for minor scratches, it is advisable not to file a claim and to pay for the repair expenses out of your own pocket. This makes more sense when you have accumulated NCB.
What Mistakes Can Affect No Claim Bonus?
Various factors can affect NCB benefits on car insurance. However, there are specific mistakes that can affect the bonus benefits from the policy details:
1. Not transferring the bonus when switching to a new policy.
2. Filing for claims under the policy.
3. Not protecting the accumulated benefits.
4. Missing out on the renewal deadline.
When Should You Avoid Filing a Claim?
Here's when you should avoid filing a claim:
1. The cost of repairs is almost equal to the deductible.
2. You've accumulated high NCB benefits over the years, which can significantly reduce your premiums.
3. Your car has minor damage such as paint chips, small dents or scratches.
4. You’ve agreed to a minor settlement with no third-party liability involved.
Does Third-Party Claim Affect NCB?
Typically, filing a claim under third-party insurance doesn't affect your accumulated NCB benefits. You must not claim for your own vehicle damage, and the NCB will remain unaffected. The Insurance Regulatory and Development Authority of India governs the Motor Insurance norms. This clearly distinguishes between own-damage and third-party components. NCB applies only to own-damage insurance.
Read more on: What is Third-party Car Insurance?
How to Transfer NCB?
Since NCB is linked to the policyholder, when you sell your car or switch the insurance, you can transfer the NCB and retain the benefits. Here's how to do so:
1. Request your current car insurance company to provide an NCB retention certificate while confirming your claim-free record.
2. When you buy new car insurance online or switch insurers, declare the NCB percentage.
3. Submit all the relevant documents to the insurer.
4. NCB will remain valid for only up to 90 days after policy expiry. Do not delay further, as it may result in the loss of accumulated benefits.
What happens if you make a claim for a car dent?
If you file a claim for something as minor as a dent on your car insurance online, you're likely to lose your NCB benefits. Moreover, the claim settlement may take some time due to inspections. It's better to pay for these small repairs yourself.
Read More on: How to negotiate lower premiums during policy renewal
In case of a small accident with bumper damage, can you file the claim?
If the damage repair costs you a significant amount, you may file for a claim. However, if the damage is small, it is advisable to get the repair done out of your pocket. It's financially wiser when your premium discounts on car insurance are significant.
Expert Note
This information is based on standard motor insurance guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI) and commonly followed industry practices. Policy coverage and conditions may vary by insurer.
Share Post
