Car Insurance No Claims Discount – In simple terms, no claim bonus, commonly referred to as NCB, is the reward given by an insurance company to a policyholder for driving safely and making no claims during a policy period. It is given in the form of discounts on car prices. It is a unique benefit that can reduce your premiums over time.
NCB is applicable only on own damage (OD) premium, which basically covers your car for damage caused by accidents, collisions, natural disasters, fires, and theft, etc.
Car Insurance No Claims Discount
As per the Indian Motor Tariff Act, an insured becomes entitled to NCB only on renewal of the policy term after a period of 12 months. At the time of purchasing your car insurance policy, the NCB stands at 0. With each subsequent claim-free year, a discount on your OD premium will increase every year when there are no claims. NCB ranges between 20-50%.
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It is very important to renew your car insurance policy on time. For the continued benefits of NCB, you must renew your car insurance policy within 90 days of its expiry date. If you renew it after 90 days of expiry, the NCB becomes zero and the cycle starts again.
Another advantage of the NCB is that it is associated with the policyholder and not the vehicle. This means it is transferable to any other car you buy. It can also be transferred to a new insurer.
You do not lose the benefits of the NCB if there is a third party claim (loss of property or life of another due to an accident). But if there is an OD requirement, the NCB will become zero and start again from the bottom plate.
Written By Bhanvi Arora Bhanvi writes @ PBLife. She likes to sing, travel, play badminton, eat white chocolate and sweet corn.
Will A Non Fault Accident Affect My No Claims Bonus?
Story of the Month Trust, Patience and Perseverance: Yashish Dahiya in Building an Employer of Choice Brand Simran Bhatia / Aug 14, 2023 My last car that I had insurance on ended in 2012, 9 years old, I still have it use?
Bidderman1969 said: my last car I had insurance on ended in 2012, 9 years, can I still use it? Click to expand… Didn’t think so. It has to be within the last 12 months, right?
You have to transfer them within 12 months otherwise you loose, I had a similar problem when I got rid of my van.
The other thing i noticed when you use a “compare” website is that it says if you are insured on another car, you can use the many number os year NCD if you have proof, but i am always on Wire car insurance, and before that, but we’ve been married for 11 years now, so how do you “prove” that? she never kept all her old insurance stuff, she only keeps her new stuff
Proof Of No Claims Bonus Admiral
You can ask them to consider another NCD but unlikely they will match, even on multi auto policies (I asked before, but why not try).
I also get really annoyed some companies are 9+ or 15+, but if you move from a 15 to a 9 to a 15, you only get a 9 certificate.
2 years from the expiry date mate. Aviva and AXA used to allow up to 3 years but dropped to 2 or so a few years back.
I would call several and not just use the comparison sites. Maybe use them to get a ballpark number.
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Elephant and Admiral were always helpful in year one on negotiating based on other NCD and I a called driver on other cars. They also do accelerator policies so you build up the NCD faster if it’s an expensive car to insure.
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