Short answer
NCB is 20% after one claim-free year, rising to 50% after five. It comes off the own-damage premium only, never third party. Under the tariff, it is lost if the policy is not renewed within 90 days of expiry.
The slabs
| Claim-free | Off own-damage premium |
|---|---|
| 1 year | 20% |
| 2 years in a row | 25% |
| 3 years in a row | 35% |
| 4 years in a row | 45% |
| 5 years in a row | 50% |
The tariff also says NCB is earned only at renewal after a full 12 months of cover (GR.27(a)), and that it does not apply to motor trade or fire and theft only policies.
What it is worth
On a private car in Zone A of 1497 cc, up to 5 years old, with an IDV of ₹5,00,000: basic own damage is ₹16,415, and 20% NCB takes off ₹3,283, leaving ₹13,132. Third party stays ₹3,416.
The 90 days
GR.27(i) of the tariff says no NCB can be allowed "when a policy is not renewed within 90 days of its expiry". So a policy that ended on 31-03-2026 keeps its NCB if renewed by 29-06-2026.
This number has one source. IRDAI's consumer page confirms the 20% to 50% range but states no time limit, so the 90 days comes from the tariff alone, a text dated 2002. Nothing we read supports the 120 days sometimes quoted. Ask the insurer when it matters.
Those 90 days do not extend the cover. The vehicle is uninsured from the day after expiry.
When longer is allowed
- Vehicle sold and not replaced straight away, or laid up: NCB may be granted if new insurance starts within 3 years of expiry, at the rate earned in the last 12 months (GR.27(g)).
- NCB earned abroad: a policy taken in India within 3 years of the overseas policy's expiry may get it, with evidence (GR.27(h)).
Claims and selling the vehicle
IRDAI's page says a claim loses the NCB for the next policy period, and that when a vehicle is sold, the NCB stays with the original owner, not the vehicle.
Common questions
How long does NCB last after a policy expires?
Under tariff GR.27(i), 90 days from expiry. If the vehicle was sold or laid up, it may be allowed up to 3 years (GR.27(g)). The 90 days has one source, the tariff.
Does NCB apply to third-party premium?
No. It comes off the own-damage premium only.
What is the highest NCB?
50%, after five claim-free years in a row.
Does NCB go with the car when it is sold?
No. IRDAI's motor page says it stays with the original owner.
Sources
- India Motor Tariff, New India Assurance copy. GR.8 (IDV), GR.27 (NCB) The tariff text, in force from 01-07-2002 by its own preamble. Opened again on 08-11-2026. Nothing here claims it binds any insurer today.
- IRDAI consumer page on motor insurance Official. Opened again on 08-11-2026.
Last checked 08-11-2026. General information for agents, not legal, tax or financial advice. Rules change: the insurer's documents and the regulator's current text decide.
