A worked example
Two claim-free years, a policy that expired on 31-03-2026, and a car with a listed price of ₹6,00,000 aged 2 to 3 years: NCB is 25%, it is kept by renewing by 29-06-2026, and IDV is ₹4,20,000.
| Item | Amount |
|---|---|
| NCB on own damage | 25% |
| Renew by this date to keep NCB | 29-06-2026 |
| Depreciation for this age | 30% |
| IDV | ₹4,20,000 |
The assumptions in that example
- NCB comes off the own-damage premium only, never third party. It is earned at renewal after a full 12 months of cover (tariff GR.27).
- No NCB if the policy is not renewed within 90 days of expiry (tariff GR.27(i)). The tariff is the only source read for this number. If the vehicle was sold or laid up, up to 3 years (GR.27(g)).
- These days keep the NCB only. The vehicle is uninsured from the day after expiry.
- IDV is the manufacturer's listed selling price less depreciation by age (tariff GR.8). The insurer's own figure decides.
Estimate only, not advice.
How it is worked out
Every figure is the tariff's: GR.27 for NCB and GR.8 for IDV. The same helpers work out NCB and final IDV in the motor premium calculator and in the app. The schedule in GR.8 is written for total loss claims, and we do not claim it binds any insurer today. More in the guides to NCB and IDV.
Common questions
What NCB do I get after three claim-free years?
35% on the own-damage premium.
Is the 90-day limit certain?
It is in tariff GR.27(i). IRDAI's page confirms the NCB range but not the time limit, so the 90 days has one source. Ask the insurer when it matters.
What is IDV for a car over 5 years old?
The tariff gives no number. It is agreed between the insurer and the insured. Type the depreciation you agreed.
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.
