How to Claim NCB on a New Car?

Published On Feb 21, 2021 11:00 AM By InsuranceDekho

The No Claim Bonus (NCB) is a reward provided by an insurer to an insured for not filing claims during the policy year. As a discount on the premium, NCB will be accumulated. The NCB premium discount ranges from 15 per cent to 50 per cent. Moreover, NCB can be claimed if someone replaces their car or purchase a new car, as it can be transferred to your new car.

No Claim Bonus is a discount on the premium available at the time of car insurance policy renewal, if no claims are filed during the policy year. The NCB increases with every claim-free year and can be utilised against the premium for the subsequent year. The NCB thus tends to lower the annual car insurance premium. The NCB ranges between 20% to 50% on the own-damage premium. And if anyone sells their car, NCB can be claimed since it can be transferred to the new car.


How to Claim No-Claim Bonus (NCB) on New Car Insurance Policy Premium

NCB is a rebate on the insurance premium which can be availed on the car insurance policy ion renewal. Here is how to go about it if you are trying to use the NCB when buying insurance for a new vehicle.

  1. Selling Your Old Car: It is possible to sell your old car which has accrued NCB and transfer the accumulated NCB to the new car. You must, however, ensure that you collect the sales invoice and the sales deed. The process of transferring the NCB to a new car is very easy. However, the process differs if the car owner plans to buy new car insurance
    offline/online or by an agent/broker.
  2. NCB Certificate: As a policyholder (insured), you must without fail let your car insurance provider know that you have sold the old car. After letting the insurance provider know about your old car sale, you then make a request to the insurance provider to transfer the old car’s NCB to the new car. You should ensure that you send all the car and policy details to the insurance company.
  3. Documents Required: (i) Copy of the delivery receipt for selling your old car (ii) Copy of the latest new car booking form (ii) Copy of the old car insurance plan (iv) agreement of the buyer-seller (v) NCB certificate (vi) In case of transfer, copy of the transfer of ownership certificate/old RC.

Some Points to Remember

  1. The NCB is only given with the own damage cover. You will not be able to use the NCB on the current car insurance if you have just a third-party cover.
  2. Usually, NCB proof is valid for 2 years. Hence, if the policyholder is off the road for some reason or has no coverage for longer than 2 years, the next time he/she carries out an insurance policy, he/she must resume from the beginning.
  3. The insured will not be able to claim expenses from the other insurer if the car is stolen/meets an accident, thus, NCB becomes void.
  4. NCB can be moved from one car to another as long as the insured individual remains the same. NCB is transferable from one insurance provider to another at the time of renewal. To make the transition of NCBs, an NCB certificate is mandatory.
  5. NCB lapses if a claim is submitted during the policy year. The NCB lapses within 90 days of the current policy expiration, if the policy is not renewed.

Conclusion

NCB is a discount offered by an insurance provider for making zero claims for a given policy year. NCB also lowers the car insurance premium. Furthermore, the NCB will be passed to the current vehicle as the policyholder orders a new car. This is because the NCB is issued not to the driver but to the policyholder. As long as the insured renews the policy annually, the NCB remains.

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.

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