No Claim Bonus refers to the discount given by an Insurance Company, in the renewal premium amount, because of no-claims by the car-owner in the previous year. Simply put, if you do not seek any insurance claims on your car, the insurance provider assumes you to be a safer profile and is willing to give you a discount in the following year.

The No-claim-bonus keeps on increasing with each consecutive year of no-claims. It is this aspect of NCB that has been effectively leveraged by Insurance Companies in discouraging small & frequent claims. Many consumers do not put in a claim for expenses related to minor damage(s), because the discount one enjoys is probably much more than the claim amount.

Please note that: