NCB stands for No Claims Bonus, which is a discount offered by insurance companies to policyholders for not raising any claim requests during a policy year. The NCB is a reward given to the insured while renewing a policy and is a discount ranging between 20%-50% . The discount is offered on the premium amount during renewal and is transferable, which means it can be transferred even if the policyholder buys a new vehicle. The NCB is calculated on the amount of the car insurance premium starting from the second year and usually begins with a 20% discount on the premium and subsequently goes up with each consecutive claim-free year. The NCB is calculated only on the own damage component of the premium and not on the third-party component. The policyholder can safeguard the accumulated NCB in car insurance, even in the event of a claim, by paying an additional premium for the NCB Protector add-on. The NCB feature stops working if a claim request is raised or if a policy is not renewed within 90 days of expiration. The benefits of NCB in car insurance include inexpensive premiums for longer than a year based on the number of NCBs acquired, which is one of the rider options that customers prefer the most among all those that are offered. The NCB is granted to the policyholder and not the car, which means it remains with the policyholder as long as they renew car insurance policies and cannot be transferred to the new owner of the car.