In India, car insurance is mandatory and can be purchased as an extra add-on when a car is bought. The good news is that most of the insurance companies offer NCB benefits to their policyholders.
Understanding No Claim Bonus (NCB) –
The No-Claim Bonus (NCB) is a benefit that may be given to a policyholder by an insurance company for not filing any claims during the policy year. Additionally, it can be accumulated over several years to receive large rewards on premiums. However, since an NCB can be transferred to a new vehicle that the car insurance policyholder purchases, it is easy for the owner to continue using the NCB benefits.
You can , visit the official website of IRDAI for further details
What exactly is NCB protection?
If one files for an own damage insurance claim, the NCB Protector safeguards your earned “no claim bonus.” Coverage claims are usually for total loss, partial loss, windshield glass claims, and theft of vehicles and accessories*. Also, the first two insurance claims made under this policy may not influence the no-claims bonus.
Who qualifies for the NCB?
If the owner does not file an insurance claim, policies over five years old are eligible for a premium cost-saving reward of up to 50%*. Also, this policy’s first two insurance claims may not influence the ‘no-claims bonus’.*
Functions of NCB –
If the user doesn’t make any claims during the policy term, the NCB lowers the premium when the policy is renewed. As a result, NCB can assist in lowering the cost of annual car insurance prices. For instance, if a policy offers a 20% NCB for the first claim-free year, you can get a 20% premium reduction when your car insurance policy renews for the following year.
Here’s a step-by-step guide to using the NCB when getting insurance for a new car –
The most crucial step is selling the old car. A third party or a dealer can buy a used car that has earned NCB and have the NCB transferred to a new car. Be sure to collect the invoice or deed.
- NCB Certificate: Being the car insurance policyholder, you must notify the insurance company about the purchase of the new vehicle. Once communicated, you can ask for the transfer of NCB from the old car to the new one. Make sure to include all policy and vehicle information.
- Documents: In addition to the written application, remember to keep the additional costs on the insurance premiums for a new car.
To Summarize –
Here are a few more points to remember now that you know the uses for the No Claim Bonus when planning for insurance or an insurance claim for a new car.
- If the policyholder is the same, NCB may be transferable from one vehicle to another. *
- NCB can be transferred from one car insurance to the other during the renewal. *
- An NCB certificate is required to simplify the transfer of the NCB.
- If one makes an insurance claim during the policy year, NCB expires.
- NCB can expire unless you proceed to renew the car insurance policy within 90 days of the current expiration date, as on the existing policy. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
*All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply