Know who owns the NCB, what happens after a claim and how it may be retained when changing an eligible vehicle.
No Claim Bonus is a discount that may apply to the own-damage portion of a motor policy after a claim-free policy period. It belongs to the policyholder, not to the buyer of a sold vehicle.
When a vehicle is sold, the buyer does not receive the seller's NCB. The existing policyholder may be able to retain and use the earned NCB for another eligible vehicle of the same class, subject to proof, insurer rules and timelines.
An own-damage claim can reduce or remove the NCB at the next renewal unless an eligible NCB protection add-on applies according to its conditions.
Before filing a small claim, compare the expected claim benefit with deductibles, non-payable items and the potential impact on your renewal discount.
Important note
This article provides general information. Final coverage, premium, exclusions and claim decisions depend on the issued policy and insurer terms.