17,000 new credit cards issued by ICICI linked to wrong users

If the policyholder has a comprehensive car insurance policy, he can buy NCB protection cover.

Insurance companies give the benefit of a No-Claim Bonus (NCB) in case other insurance is not claimed, to car owners when they apply for renewal. If no claim is made for 5 years, then the company can offer an opportunity to reduce the premium cost by 50%. Many car owners are not aware that NCB can be availed even after making a claim if the person has bought a No-Claim Bonus (NCB) protection cover. If the policyholder has a comprehensive car insurance policy, he can buy NCB protection cover.

What is NCB protection cover?

This is an add-on option, which can be purchased along with the car insurance policy by paying an additional premium. There is no limit to the claims an individual can make. Even if the person has made 1-2 claims in a year, the NCB exemption will remain intact. The NCB protection cover basically protects the No Claim Bonus privilege even if the policyholder has made one or two claims during the policy term. With NCB protection cover, the policyholder is eligible for premium waiver irrespective of the claim.

Benefits

Suppose, an individual takes the ‘Own Damage’ insurance plan for the car and has not made any claim in the last three years. He will be getting 35% NCB. Now, in the fourth year, if he/she makes a claim of Rs 50,000, the insurer will settle the claim. When the person will renew the policy next year, the renewal premium will be Rs 9,400. Now if the individual does not have NCB protection cover then he/she will not get this 35% bonus and will have to get the policy renewed by paying a Rs 9,400 premium. But if there is NCB protection cover, then after getting 35% NCB, the person can renew the policy in Rs 6,500.

Premium

The premium for NCB protection cover ranges from around 5% to 10% of the premium cost of the car insurance policy.

Who should get it

Those who wish to protect the accumulated NCB should opt for the NCB protection add-on. One can save a lot on premium by paying a little more for this add-on. All the car owners who want to keep the premium cost low should opt for NCB protection cover. Even if the policyholder makes 1-2 claims in a year, NCB protection cover should be taken. NCB protection cover will be beneficial for owners of expensive cars.

Keep in mind

While buying, compare add-on premium rates from different insurers. Choose an insurer that charges a lower rate so that you can save on premium costs as well.