Ask any expert as to how to reduce car insurance premium, the advise is drive safely, avail NCB. No claim bonus or NCB is one of the major factors affecting car insurance premium. It is a discount that the vehicle owner gets if he doesnt make a claim the whole year. Percentage of bonus increases for every claim free year.
How is NCB Calculated
NCB can be availed for every claim free year of the vehicle. It is calculated on the own damage part of the insurance premium and not the third party insurance. Own damage (OD) premium forms a major component of comprehensive car insurance. One can get up to 50% discount on it.