How to Avail an NCB on Your New Car?
Updated On Oct 15, 2023
A No Claim Bonus a premium discount offered by insurance providers at the end of a policy year for filing no claims in that particular year of the policy. The bonuses can also be accrued over consecutive years in order to avail a large premium discount.
If you make no insurance claims for a certain policy year) you are eligible to receive a No Claim Bonus on the renewal of your policy for the next year as a discount on your premium payable. The NCB on your car insurance helps reduce the annual premium of the insurance policy. Say, your car insurance policy provides a No Claim Bonus of 15% for the first year with zero claims. This would mean that you can avail a 15% premium discount when you renew the policy for the next year.
How You Can Avail an NCB on Your New Car?
If you are keen on availing of an NCB on a new car you recently purchased, then here are some tips and points that can help you.
- Selling Your Old Car: A very important part of selling your old car is to make sure you acquire the car’s accumulated NCB and transfer it to your new car. Whether you’re selling the old car to a third party or a dealer, always ensure that you obtain the sale deed and sale invoice.
- NCB Certificate: You need to inform your car insurance company about your new purchase and most importantly, that you have sold your old vehicle. Post this notification, you can put in an official request for transferring all the NCB acquired on the previous car, to the new car. Remember that, you need to submit all the necessary documents like the policy details and vehicular papers.
- Documents: These are the documents that you will need along with a written application.
- A copy of the delivery note you received on the sale of your old car.
- A copy of your new car’s booking form.
- A copy of the insurance policy your old car had.
After you have made the NCB application to the car insurance company, it takes a maximum of 3 days for them to issue a No Claim Bonus certificate for your new car. Based on this certificate, the NCB can be applied as a premium discount for your new car.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.