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No Claim Bonus (NCB) entitlement for Motor Policies

  • No Claim Bonus (NCB) can be earned only in the Own Damage section of Motor Policies.
  • NCB is allowed for all classes of vehicles other than Motor Trade Policies.
  • NCB is to be allowed only when the vehicle has been insured continuously for a period of 12 months without any break.
  • NCB can be allowed only when a policy is renewed within 89 days of the expiry of previous policy.
  • No Claim Bonus, wherever applicable, will be as per the following table.
Period of Insurance % of NCB on OD premium
The preceding year 20 %
Preceding Two consecutive years 25%
Preceding Three consecutive years 35%
Preceding Four consecutive years 45%
Preceding Five consecutive years 50%

  • The entitlement of NCB shall follow the fortune of the original insured and not the vehicle or the policy.
  • In the event of transfer / sale of vehicle and subsequent transfer of policy, the NCB amount will be recovered from the buyer of the vehicle before affecting the transfer of policy. (Unless transferee is entitled to a lesser or higher percentage of NCB than that existing in the policy)
  • If the transferee is entitled to a lesser or higher percentage of NCB than that existing in the policy, then evidence of the same must be submitted at the time of transfer of the policy by way of letter from previous insurer.
  • In case of death of the insured who is an individual, on his death the custody and use of the vehicle pass to his spouse and/or children and/or parents, the NCB entitlement of the original insured will pass on to such person/s to whom the custody and use of the vehicle pass.
  • The NCB earned on a vehicle owned by an institution during the period when it was allotted to and exclusively operated by an employee will be passed on to the employee if the ownership of the vehicle is transferred in the name of the employee based on submission of suitable letter from the employer.
  • In the event of the insured, transferring his insurance from another insurer to Chola MS, Chola MS will allow the same rate of NCB which the insured would have received from the previous insurer.
  • Evidence of the insured's NCB entitlement either in the form of a renewal notice or a letter confirming the NCB entitlement from the previous insurer must be submitted for this purpose.
  • Insured’s declaration on the entitlement of NCB will be accepted and Chola MS will write to previous insured to confirm the entitlement. If the information be found incorrect or false in any aspect, this Policy shall be void ab initio and no benefit shall be payable by us.
  • If an insured vehicle is sold and not replaced immediately, NCB will be granted on a subsequent insurance, provided such fresh insurance is effected within 3 (three) years from the expiry of the previous insurance. The rate of NCB applicable to the fresh policy shall be that earned at the expiry of the last 12 months period of insurance.
  • On production of evidence of having earned NCB abroad, an insured will be granted NCB on a new policy with Chola MS as per entitlement earned abroad.
  • Sunset Clause: If at the renewal falling due any time between 1st July 2002 and 30th June 2003, an insured becomes entitled to an NCB of 55% or 65% in terms of the Tariff prevailing prior to 1st July 2002, the entitlement of such higher percentage of NCB will remain protected for all subsequent renewals till a claim arises under the policy, in which case the NCB will revert to ‘Nil’ at the next renewal.

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