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Only partly. IRDAI fixes the Third-Party (TP) premium and revises it almost every financial year based on loss-cost data from accident-injury claims. The Own Damage (OD) component was detariffed in January 2007 — insurers now price OD freely based on their own actuarial models.

That is why TP is identical across all insurers for the same engine capacity but OD quotes for the same car can vary 20-40% between Acko, Digit, HDFC ERGO, ICICI Lombard, Bajaj Allianz and others. Always compare at least 3 quotes before renewing.

No Claim Bonus (NCB) is a discount on your Own Damage (OD) premium for every claim-free policy year. The IRDAI-mandated ladder is:

• After 1 claim-free year — 20%
• After 2 claim-free years — 25%
• After 3 claim-free years — 35%
• After 4 claim-free years — 45%
• 5+ years — 50% (capped)

The discount applies only to OD, never to TP. The big catch: NCB resets to 0% the moment you file any claim, no matter how small. A small dent (under ₹15,000) is often cheaper to pay out of pocket than to claim.

Tip: NCB belongs to the policyholder, not the car — if you sell your car you can carry forward the NCB to your next car within 3 years via an NCB Reserving Certificate.

For cars less than 5 years old — almost always yes. Standard OD claims apply a depreciation schedule:

• Plastic, rubber, fibre parts — flat 50% depreciation
• Painted parts — declining schedule (5%-50% by year)
• Metal parts — declining by car age

Zero depreciation (also called bumper-to-bumper) waives that depreciation and pays the full replacement cost. The add-on costs roughly 20% more on the OD premium but on a single moderate claim (₹40,000-₹60,000 of bodywork) it pays for itself many times over.

Beyond 5 years, most insurers stop offering zero depreciation or charge a steep loading. Most policies cap zero-dep at 2 claims per policy year.

Yes — NCB belongs to the policyholder (you), not the vehicle. When you sell your old car, ask your insurer to issue an NCB Reserving Certificate (also called an NCB Retention Letter). This certificate is valid for 3 years from the date the old policy expires.

When you buy your new car, hand the certificate to the new insurer at policy inception and they will apply the accumulated NCB percentage to the new car's OD premium from day one. The certificate is free and is one of the most-missed savings during the chaos of selling an old car. If you let the certificate lapse beyond 3 years the NCB is gone permanently.