A no-claim bonus (NCB) is a discount on your insurance premium awarded for each claim-free year. It rewards safe driving but disappears quickly when you file a claim—sometimes making small repairs cheaper to handle yourself.

Why Your No-Claim Bonus Matters

That discount isn’t just a perk—it’s hard-earned. Every year without a claim builds your bonus, often reaching up to 50% off your premium. But one claim can reset it to zero. Suddenly, that minor fender-bender isn’t so minor anymore.

When to Bite the Bullet and Pay Yourself

It’s a simple math problem: if the repair cost is less than the value of your lost discount over the next few years, pay out of pocket. For example, a ₹5,000 repair might seem worth claiming—until you realize losing a 40% NCB could cost you ₹15,000 extra in premiums over two years.

Think long-term. A small claim today can haunt your insurance costs for years.

When Filing a Claim Makes Sense

Major accidents are different. If repair costs run into lakhs, or there’s significant third-party damage, use your insurance. The financial hit from losing your NCB is still smaller than covering massive repairs alone.

  • Minor scratch or dent: Pay yourself if repair is under ₹10,000.
  • Broken headlight or mirror: Compare repair cost against NCB value.
  • Major collision: File a claim—it’s what insurance is for.