Motor Insurance NCB Calculator India — FY 2025-26
Calculate your No Claim Bonus discount on motor insurance. See IRDAI NCB slabs (20% to 50%), decide whether to file a claim or pay out of pocket, and check if the NCB Protector add-on is worth buying. Works for car and two-wheeler insurance. Updated for FY 2025-26.
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How to Use This Calculator
NCB Discount tab
Enter your claim-free years, OD premium (Own Damage, before NCB), and TP premium (Third Party). The calculator applies the IRDAI-mandated NCB slab to your OD premium and shows the exact discount in rupees, your final premium, and savings versus having no NCB. NCB only applies to OD — TP premium is fixed by IRDAI and unaffected.
Claim vs No-Claim tab
Got minor damage? Enter the repair cost, your current claim-free years, and OD premium. The calculator computes the cost of rebuilding your NCB from 0% back to your current level if you file a claim. If the repair cost is less than the rebuild cost, you are better off paying out of pocket. This is the most important decision tool for small accidents.
NCB Protector tab
Should you buy the NCB Protector add-on? Enter the add-on cost, your current NCB level, OD premium, and estimated claim probability. The calculator computes the expected value — if positive, the protector is worth buying. Especially valuable for high-NCB policyholders (45-50%) with high OD premiums.
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The Formula
IRDAI NCB Slabs:
1 claim-free year = 20%
2 claim-free years = 25%
3 claim-free years = 35%
4 claim-free years = 45%
5+ claim-free years = 50% (maximum)
Final Premium = (OD Premium − NCB Discount) + TP Premium
NCB Rebuild Cost (if claim filed):
Cost = ∑ (Current NCB% − NCB% at year y) × OD Premium
for y = 0 to (current claim-free years − 1)
NCB Protector Expected Value:
EV = Claim Probability × NCB Rebuild Cost − Protector Cost
Worked Example
Rajesh — 5-year claim-free car owner with minor accident
Rajesh (35) has been driving claim-free for 5 years. His car has OD premium of ₹15,000 and TP premium of ₹3,000. He scraped a pillar and has ₹12,000 damage. Should he claim?
Step 1: Current NCB value
Step 2: Cost of filing claim (NCB rebuild)
Step 3: Decision
Verdict: Filing a ₹12,000 claim would cost Rajesh ₹18,750 in lost NCB over the next 5 years. He saves ₹6,750 by paying for the repair himself. The break-even damage amount is ₹18,750 — only file a claim if damage exceeds this.
Motor Insurance NCB at a Glance (FY 2025-26)
IRDAI NCB slab table
| Claim-Free Years | NCB Discount | On ₹15,000 OD | On ₹30,000 OD |
|---|---|---|---|
| 0 years | 0% | ₹0 | ₹0 |
| 1 year | 20% | ₹3,000 | ₹6,000 |
| 2 years | 25% | ₹3,750 | ₹7,500 |
| 3 years | 35% | ₹5,250 | ₹10,500 |
| 4 years | 45% | ₹6,750 | ₹13,500 |
| 5+ years | 50% | ₹7,500 | ₹15,000 |
Same slabs across all insurers. NCB applies to OD premium only. TP premium is unaffected. Source: IRDAI Motor Insurance Guidelines.
NCB rules summary
- Applies to: Own Damage (OD) premium only. Third Party (TP) is IRDAI-fixed.
- Claim impact: Any claim resets NCB to 0%. Even a ₹500 windshield claim resets it.
- Transferable: NCB belongs to the policyholder, not the vehicle. Transfer to new car within 90 days.
- Portable: Carry your NCB when switching insurance companies. Get NCB certificate from old insurer.
- Grace period: 90 days from policy expiry to renew and retain NCB. After 90 days, NCB resets to 0%.
- Maximum: 50% is the ceiling. Cannot increase beyond 50% regardless of additional claim-free years.
NCB Protector add-on details
- What it does: Protects your NCB even if you make 1-2 claims in a year.
- Cost: Typically ₹500–1,500 per year depending on insurer and vehicle type.
- Claim limit: Usually 1 claim/year protected. Some insurers (e.g., HDFC ERGO) cover up to 3 claims.
- Not transferable: NCB protector is insurer-specific. Must be bought fresh when switching.
- Best for: High-NCB policyholders (45-50%) with expensive OD premiums who drive in high-risk areas.
- Not available mid-term: Must be added at policy inception or renewal, not mid-year.