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No Claim Bonus Calculator

Whether a small claim is worth making. A claim resets the bonus to zero regardless of size, so the cost is the whole ladder rebuilt over several years, which frequently exceeds a modest claim.

Also called: ncb calculator, should i claim insurance.

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₹
Current no claim bonus
35%

35% after 3 claim free years, worth ₹8,820 this year. Making a 18,000 claim resets it to zero and costs ₹17,640 in lost bonus over 4 years, so the claim is worth making.

Next year if claim free
45%
Saving this year
₹8,820
Bonus lost by claiming
₹17,640
Net benefit of claiming
₹360
Claim size at which it becomes worth it
₹17,640
Verdict
worth making.
On the bonus ladder
The ladder is 20, 25, 35, 45 and 50 percent. Any claim resets it to zero regardless of size.
How this is calculated

An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

The bonus ladder runs twenty, twenty-five, thirty-five, forty-five and fifty percent, climbing one step for each claim free year and resetting entirely on any claim. The reset is what makes small claims expensive: a fifteen thousand rupee claim on a policy with a forty-five percent bonus costs that bonus and the several years of rebuilding it, which often exceeds the claim. The break-even shown is the claim size at which claiming becomes worthwhile given your bonus and how long you expect to keep the vehicle.

the ladder climbs one step a claim free year and resets to zero on any claim, however small
NCB
No claim bonus

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

three claim free years

Consecutive claim free years
3
Own damage premium before bonus
₹25,200
Claim you are considering
₹18,000
Years you expect to keep the car
4

Current no claim bonus35%

The third rung of the ladder

Open this example

no claim free years means no bonus

Consecutive claim free years
0
Own damage premium before bonus
₹25,200
Claim you are considering
₹18,000
Years you expect to keep the car
4

Current no claim bonus0%

boundary: nothing to lose

Open this example

Method and limits

What it assumes

  • A full reset on any claim, which is the standard treatment.

What it deliberately does not model

  • NCB protection add-ons allow one claim without a reset and change this entirely.
  • The bonus transfers with you rather than with the car, and can be carried to a new vehicle.
  • Third party only claims sometimes do not affect the bonus.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Should I claim for a small dent?
Usually not. The bonus resets to zero regardless of claim size, and rebuilding it takes several years, so the true cost of a small claim is much larger than the claim.
Does the bonus stay with the car?
No, with you. It transfers to a new vehicle, which is worth remembering when selling.