Claims & NCB

Should You Claim for Minor Damage? The Claim-vs-Pay Maths

By  Updated  3 min read
Should You Claim for Minor Damage? The Claim-vs-Pay Maths
In this guide

Key takeaways

  • Claim payout = repair bill − parts depreciation − compulsory and voluntary deductibles.
  • The cost of claiming = the NCB you lose over the next few renewals, plus GST.
  • At 35% NCB, losing NCB costs about 1.2× your base own-damage premium over three renewals.
  • Always claim for theft, third-party damage or major damage — the maths is for small, optional repairs.

A scraped bumper, a cracked tail-lamp, a dented door. The garage quotes ₹12,000 and you have comprehensive cover. Should you claim? Often the honest answer is no — and here is why.

What a claim actually pays

Insurers don’t pay the whole bill. Without zero-depreciation cover, they deduct depreciation on replaced parts (50% on plastic and rubber, an age-based rate on metal), and every claim carries the compulsory deductible — ₹1,000 for cars up to 1500cc, ₹2,000 above that and ₹100 for two-wheelers — plus any voluntary deductible you chose.

Payout = Bill − parts depreciation − compulsory deductible − voluntary deductible

What a claim costs you

A paid own-damage claim normally resets your NCB to 0% at the next renewal. Rebuilding it takes five claim-free years. The extra premium you pay during those years is the true cost of the claim.

NCB lost over the next three renewals

Per ₹10,000 of own-damage premium before NCB, including 18% GST:

Your current NCB NCB path without claim NCB path after claim Extra premium over 3 years
0% 20 → 25 → 35 0 → 20 → 25 ₹4,130
20% 25 → 35 → 45 0 → 20 → 25 ₹7,080
25% 35 → 45 → 50 0 → 20 → 25 ₹10,030
35% 45 → 50 → 50 0 → 20 → 25 ₹11,800
45% or 50% 50 → 50 → 50 0 → 20 → 25 ₹12,390

Scale the last column to your own premium. If your base OD premium is ₹6,000, multiply by 0.6.

A worked example

A 1200cc car with 35% NCB and an own-damage premium of ₹6,500 after NCB (so ₹10,000 before NCB). The bill is ₹18,000, including ₹3,000 of depreciation on plastic parts.

  • Payout: ₹18,000 − ₹3,000 − ₹1,000 = ₹14,000
  • NCB lost over three renewals: ₹11,800
  • Net benefit of claiming: ₹2,200

Claiming wins — narrowly. If the bill had been ₹12,000 (payout about ₹9,000), paying yourself would have been about ₹2,800 cheaper.

Your break-even repair bill

Roughly: break-even bill ≈ NCB loss + depreciation + deductibles. In the example, about ₹15,800. Below that, pay yourself; above it, claim. The claim vs pay calculator works this out for your numbers and NCB level.

Other things to weigh

  • NCB protection: with this add-on, a claim doesn’t reset NCB (within its limits), so small claims become far more attractive.
  • Zero-dep: without depreciation deductions, the payout is higher and the break-even lower.
  • Future renewals: repeated small claims can lead to inspections or less favourable terms at renewal.
  • Cash flow: if paying ₹15,000 now would strain you, claiming may be right even if it costs a little more later.

Always inform your insurer about accidents involving injury or damage to someone else, theft, fire or flood, and major damage. Third-party claims and large losses are exactly what insurance is for.

FAQs

If I pay myself, can I claim later for the same accident?

Claims should be intimated promptly after the accident. If you are unsure, inform the insurer that an incident occurred and decide on the claim after getting the estimate; ask how they treat an intimation without a claim.

Do cashless claims affect NCB the same way?

Yes. Cashless and reimbursement are just payment methods; any paid own-damage claim affects NCB.

Sources

  • NCB slabs, compulsory deductible and parts depreciation from standard Indian motor policy wordings; figures computed with the idvcalculator.com claim vs pay calculator.

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