No Claim Bonus (NCB) is the benefit accrued to an insured for not making any claims during the previous policy period. As per current norms in India, the discount ranges from 20% on the Own Damage premium (and not on Liability premium) and progressively increases Year on Year of no claim to a maximum of 50%.
If, a claim is lodged, the No Claim Bonus is lost in the subsequent policy period. The following are the NCB rates applicable on consecutive claim free years.
| Years of No Claim | NCB Discount |
| Year 0 | 0% |
| Year 1 | 20% |
| Year 2 | 25% |
| Year 3 | 35% |
| Year 4 | 45% |
| Year 5 onwards | 50% |