NCB Protection is an additional cover that protects the No Claim Bonus earned until previous year, even if there is a claim in this year’s policy. No Claim bonus (NCB) is a discount applicable on renewal of motor comprehensive insurance for every claim free policy year.
NCB Protection is an additional cover in a Comprehensive Motor Insurance Plan.
Normally, if there are claims during a policy year, no claim bonus is withdrawn completely during next renewal of your insurance. So, it is better to opt for NCB Protection add-on cover to keep your previously earned NCB intact on renewal, even if you have had a couple of minor claims.
However, NCB Protection benefit is valid for limited number (1 or 2) of own damage claims in a year as per the terms agreed by the respective insurers. If you have had more than 1 or 2 number of claims, the NCB Protection will not be applicable on renewal of insurance policy.