The Insurance Regulatory and Development Authority of India (IRDAI) has introduced significant updates to car insurance NCB 2025 policies. These vehicle insurance changes aim to reward safe drivers while ensuring fair pricing for policyholders. If you own a car, understanding these new IRDAI rules will help you maximize savings on your premiums.
Table of Contents
What is a No-Claim Bonus (NCB)?
A No-Claim Bonus (NCB) is a discount offered by insurers if you don’t make any claims during a policy year. It’s a reward for responsible driving and helps reduce your car insurance renewal costs.
Updated NCB Slabs for 2025
The revised car insurance NCB 2025 structure is as follows:
No. of Claim-Free Years |
Discount on Own Damage Premium (2025) |
|---|---|
1 Year |
20% |
2 Years |
25% |
3 Years |
35% |
4 Years |
45% |
5+ Years |
50% |
These vehicle insurance changes ensure higher savings for long-term claim-free policyholders.
Key Changes in IRDAI Rules for 2025
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Higher NCB Benefits: The maximum discount has been increased from 45% to 50% for 5+ claim-free years.
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Transferability: NCB remains linked to the policyholder, not the car, making it easier to switch insurers.
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Lapsed Policy Rules: A grace period of 90 days is now allowed to retain NCB after policy expiry.
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Bonus Protection Add-on: Insurers now offer an optional add-on to protect your NCB even after a single claim.
How to Maximize Your NCB in 2025?
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Avoid Small Claims: Pay for minor repairs out of pocket to maintain your NCB.
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Renew on Time: A lapse beyond 90 days resets your NCB to zero.
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Check Policy Terms: Some insurers offer NCB recovery options after a claim.
FAQs
1. Can I transfer my NCB to a new car?
Yes! The car insurance NCB 2025 is tied to the policyholder, not the vehicle. You can transfer it when buying a new car.
2. What happens if I make a claim after 4 claim-free years?
Your NCB will reset to 0%, and you’ll lose the accumulated discount. Consider using the Bonus Protection Add-on to safeguard your NCB.
3. Do IRDAI rules allow NCB on third-party insurance?
No, NCB applies only to the Own Damage part of a car insurance policy.
4. How does the 90-day grace period work?
If you renew within 90 days of expiry, your NCB remains intact. Beyond that, you’ll start from 0%.
Final Thoughts
With the latest vehicle insurance changes, policyholders can enjoy better rewards for safe driving. Staying informed about IRDAI rules ensures you get the best out of your car insurance NCB 2025.
Pro Tip: Compare policies before renewal to find the best NCB benefits and premiums!
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