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Vitthub
Glossary term

No-Claim Bonus

Discount for claim-free years

🌍 UniversalReviewed Plain-English
Definition

What is No-Claim Bonus?

NCB is a discount or sum-insured increase the insurer gives if you don't claim during a policy year. Motor insurance in India: 20% NCB in year 1, rising to 50% by year 5 — lost entirely if you make even a small claim. Health insurance: often a cumulative increase in sum insured up to 50–100%.

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