Definition
NCB Protection
NCB protection is a motor add-on that preserves the accumulated no-claim bonus even after the policyholder makes a permitted number of claims.
Without this add-on, a single own-damage claim wipes out the no-claim bonus at the next renewal. NCB protection lets the owner lodge a set number of claims within the year (subject to terms) while retaining all or most of the earned discount.
It is most worthwhile for those with a high accumulated NCB, where losing the discount would sharply raise the next premium. The add-on adds a small cost to the policy and usually comes with conditions on the number and type of claims allowed.
Related terms
- Own-Damage CoverOwn-damage (OD) cover compensates for damage to or loss of the insured's own vehicle from accidents, theft, fire and natural calamities.
- Motor No-Claim BonusMotor No-Claim Bonus is a discount on the own-damage premium granted for each consecutive claim-free policy year, accumulating up to a maximum slab.
- Add-On CoverAn add-on (or rider) cover is an optional enhancement bought with a base policy to widen protection for an extra premium.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.