As per The Motor Vehicles Act, 1988, it is mandatory for every vehicle owner to have at least a basic third-party insurance for their vehicle before driving in India. Apart from keeping you legally compliant, car insurance also keeps you financially protected. A comprehensive car insurance policy will cover you against third-party liabilities and your own damages in an accident. The coverage will also extend to protect your losses from natural disasters and man-made calamities.
Your car insurance policy also rewards you for every claim-free year. It does this by giving you a ‘no-claim bonus’ (NCB). This bonus is generally applied as a discount on the premium you pay. The NCB can vary between insurance providers.
Now, if you do make a claim, you normally would forfeit the NCB. However, you may still keep the benefits of the NCB if you are opt-in for the add-on known as the ‘no-claim bonus protector’ in your car insurance policy. In this article, we take a look at what you need to know about the ‘no-claim bonus protector’ add-on.
What is the ‘no-claim bonus protector’?
If you make a claim on your car insurance policy, your NCB normally expires. However, if you include the no-claim bonus protector add-on in your car insurance policy, you will still be able to receive the benefits of your NCB even if you make a claim. This add-on can protect the benefits that you receive from your NCB up to a certain number of claims within a given year. Do make sure to check with your insurer how many claims are included in their no-claim bonus protector add-on. Generally, a maximum of one or two claims is allowed. Do bear in mind that if you exceed the specified limit of claims allowed, you will not be able to receive the benefits of this add-on.
How to buy the no-claim bonus protector?
You can easily get the no-claim bonus protector when you buy a comprehensive car insurance policy online or at the insurance company’s office. You can even opt-in for this add-on when renewing your car insurance policy. Do note that you will have to pay a bit extra in your monthly premium for the no-claim bonus protector add-on.
Is it beneficial to have the no-claim bonus protector?
Yes, there are definitely plus points to having this add-on in your car insurance policy. To begin with, the actual additional cost you pay in your monthly premium is probably going to be lesser than the discount you will receive as part of your no-claim bonus. Plus, one can never really be 100% sure of not having an accident as the roads can be very unpredictable. So, make sure to have this add-on included and do not leave the benefits of your NCB to chance.
We hope this article helped better your understanding of the ‘no-claim bonus protector’ add-on. Do make sure to always renew your car insurance policy on time to enjoy proper protection. Take care and drive safely!