How to Claim NCB on New Car Insurance Policy Premium?
The No Claim Bonus (NCB) is a benefit offered to a policyholder by an insurer for not making claims during the term of the policy. NCB can be accrued as a rebate on the premiums. The NCB discount on premiums varies from 15 percent to 50 percent. And if anyone changes their car, NCB could be claimed since it can be transferred to the new car
Where no claims are made, the NCB functions by offering a rebate on the premium payable on the policy renewal. Each claim-free year the NCB increases by 5% which is used for the next year’s premium. Thus, the NCB helps to lower the monthly premium on car insurance.
Here is how to go about it if you are trying to use the NCB when buying insurance for a new vehicle.
- Selling Your Old Car: It is possible to sell the old car that has accrued NCB to the dealer or a third party and to transfer the accumulated NCB to the new car. However, you must make sure that the sale invoice and sale deed is received by you. The method of transferring the NCB to a new policy for car insurance is extremely simple. However, the process varies if the vehicle owner plans to purchase new car insurance offline, online, or by a broker/agent.
- NCB Certificate: You must communicate to the car insurance provider as a policyholder that you have sold your old vehicle. You will make a request, after communicating, that the NCB received on the old car should be used for the new car. You must make sure that you give all the car and policy details.
- Documents Required: (i) Copy of the issued delivery receipt for selling the old car (ii) Copy of the Latest car booking form (ii) Copy of the previous car insurance contract (iv) NCB certificate (v) Buyer-seller agreement (vi) In case of transfer copy of the transfer of old RC/ownership certificate.
Some Points to Remember
- NCB is given only with the cover for its own damage Car Insurance. If you only own a third-party cover, you cannot use the NCB offer for your new car insurance
- NCB evidence is normally valid for 2 years. Therefore, if the insured is off the road for any purpose or does not have the policy for more than 2 years, he/she must start from the beginning the next time he/she takes an insurance policy.
- If the vehicle is stolen/meets with an accident the insurer would not be able to recover expenses from the other insurer, hence, NCB becomes invalid.
- As long as the insured is the same, NCB may be transferred from one vehicle to another. During renewal, NCB is transferable from one insurance company to another. To allow the transfer of NCBs, an NCB certificate is compulsory.
- If a claim is made within the policy year, NCB lapses. Within 90 days of the existing policy expiration, if the policy is not renewed, the NCB lapses.
Also, Read
Car Insurance Online Vs Offline: Which is Better?
Why Is It Important to Renew Car Insurance on Time?
Conclusion
NCB is a discount offered for a certain policy year by an insurance company for filing zero claims. Therefore, NCB aims to lower the premium on car insurance. Moreover, when the policyholder buys a new car, the NCB can be transferred to the new vehicle. This is because the NCB is given to the policyholder and not for the car. The NCB will remain as long as the policyholder renews the policy yearly.
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.
