Insurance
No-Claim Bonus (NCB) Provision
Accruing the liability for premium discounts that will be applied at renewal for claim-free policyholders.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| NCB Discount Expense (Provision) | Expense (+) | 25,000.00 | - |
| NCB Provision (Liability) | Liability (+) | - | 25,000.00 |
💡 Accountant's Note
NCB is a loyalty pricing mechanism — policyholders earn up to 40-50% discount for consecutive claim-free years. The projected NCB cost is provisioned at year-end to match the benefit to the period it was earned.
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