Motor Insurance Term
No-Claim Bonus
A reward — discount or extra cover — for not making a claim.
What is No-Claim Bonus?
A No-Claim Bonus (NCB) rewards you for a claim-free year. In motor insurance it's a discount of 20–50% on your own-damage premium; in health insurance it often boosts your sum insured instead.
NCB belongs to you, not the insurer, so it carries over when you switch. Making a claim usually resets it.
Example
Five claim-free years earn a 50% NCB — halving the own-damage part of your car premium.
Related terms
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