Calculating your premium after NCB is straightforward once you know the No Claim Bonus (NCB) formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the No Claim Bonus (NCB) Calculator.
What is No Claim Bonus (NCB)?
The No Claim Bonus (NCB) calculation tells you your premium after NCB from a few simple inputs. The figure you are solving for here is the premium after NCB, expressed in INR.
The No Claim Bonus (NCB) formula
The core formula is:
Premium after NCB = Base premium × (1 - No claim bonus ÷ 100)Here is what each input means:
- Base premium — a money amount. Example: ₹10,000.
- No claim bonus — a percentage, such as an annual rate. Example: 2%.
How to calculate it step by step
- Write down the base premium (for example, ₹10,000).
- Write down the no claim bonus (for example, 2%).
- Apply the formula above to get your premium after NCB.
- Double-check the result with the No Claim Bonus (NCB) Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Base premium | ₹10,000 |
| No claim bonus | 2% |
| Premium after NCB | ₹8,000.00 |
| Discount amount | ₹2,000.00 |
With base premium of ₹10,000 and no claim bonus of 2%, the premium after NCB works out to ₹8,000.00.
Example 2
With base premium of ₹20,000 and no claim bonus of 2%, the premium after NCB works out to ₹16,000.00.
| Result | Value |
|---|---|
| Premium after NCB | ₹16,000.00 |
| Discount amount | ₹4,000.00 |
Example 3
With base premium of ₹5,000 and no claim bonus of 2%, the premium after NCB works out to ₹4,000.00.
| Result | Value |
|---|---|
| Premium after NCB | ₹4,000.00 |
| Discount amount | ₹1,000.00 |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
- Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).
Prefer not to do the maths by hand? — the No Claim Bonus (NCB) Calculator does it instantly, for free, with the formula and a worked example built in.
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