The NCB for car insurance is calculated by multiplying the number of years
with no claims by the percentage bonus. NCB for car insurance is calculated by
multiplying the number of years with no claims by the percentage bonus. For
example, if you have been driving for 10 years without a claim, and your
insurer offers a 10% bonus, then you would have a 20% NCB.
NCB is calculated on a time period of 12 months. For example, if you have
not made any claims in the last 12 months and you are looking to buy car
insurance, then your NCB will be 100%. A
car owner can use NCB to calculate how much they would save on their annual
premium by using this formula: NCB% x Annual Premium = Annual Saving.
How to Calculate NCB in Car Insurance?
The calculation of NCB (No Claim Bonus) in car insurance depends on the number of consecutive years that you have not made a claim. The percentage of NCB discount offered by insurance companies increases with each claim-free year and can range from 20% to 50%. To calculate your NCB, you can start by identifying the percentage of NCB applicable to your policy based on the number of claim-free years.
This percentage can be applied to the premium amount for the next policy period to arrive at the discounted premium amount. For instance, if your NCB percentage is 40% and your premium amount is Rs. 10,000, then your discounted premium amount would be Rs. 5000 (i.e., Rs.10,000 - 40% of Rs.5000). It is important to note that NCB can only be claimed if you renew your policy with the same insurance company or switch to another insurance company that recognizes NCB.
How to Calculate NCB?
The amount of no claims bonus that you can get will be based on your policy’s terms and conditions. The NCB is calculated only on the own-damage component of the premium and not the third-party damage component of the insurance premium. NCB percentage will be calculated on the total premium minus the third-party liability premium. So if your insurance premium is Rs. 1000, your NCB will be calculated only on Rs. 800, which is the premium minus the third-party damage component.
How Much is the Insurance Amount of Car in Tamil Nadu?
The insurance amount for a car in Tamil Nadu varies based on factors such as the car's make and model, location, and type of coverage. The annual premium can range from Rs. 2,200* to 8000*, depending on individual circumstances and coverage choices.
How Much is the Insurance Amount of Car in Karnataka?
The insurance amount for a car in Karnataka varies based on factors such as the car's make and model, location, and type of coverage. The annual premium can range from Rs 3,000* to 9000*, depending on individual circumstances and coverage choices.
How Much is the Insurance Amount of Car in Telangana?
The insurance amount for a car in Telangana, like in other Indian states, varies based on factors such as the car's make and model, location, and type of coverage. The annual premium can range from Rs. 2,400* to 5,500*, depending on individual circumstances and coverage choices.
How Much is the Insurance Amount of Car in Maharashtra?
The insurance amount for a car in Maharashtra, like in other Indian states, varies based on factors such as the car's make and model, location, and type of coverage. The annual premium can range from Rs. 2,500* to 8000*, depending on individual circumstances and coverage choices.
How Much is the Insurance Amount of Car in Kerala?
The insurance amount for a car in Kerala, like in other Indian states, varies based on factors such as the car's make and model, location, and type of coverage. The annual premium can range from Rs. 2,000* to 5000*, depending on individual circumstances and coverage choices.