No Claim Bonus In Motor Insurance – We get a lot of questions about NCB or No Claim Bonus when buying a Motor Insurance Policy. So I thought of writing a detailed post on NCB and NCB Certificate. This concept of use
What do you do with your existing insurance policy when you sell your vehicle to a third party or give it to a dealer for a trade-in? Well, I know most of you will say – Nothing.
No Claim Bonus In Motor Insurance
Well, it is mandatory to have the vehicle insured at all times including re-registration when selling it. But the policy is in your name. So it will expire, once the Registration is transferred to a new owner. But you can save your future premium, here by asking your insurance company – NCB Retention Certificate or NCB Certificate as it is commonly called. Let’s learn this insurance trick in detail. First, let me start with the No Claim Bonus.
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It is a discount offered by the insurance company based on the fact that you have not made any claims during the last year on your insurance policy. You can consider this as an award or incentive for good maintenance and safe driving of your vehicle.
The discount in this premium is 20% for the 2nd year, 25% for the 3rd year, 35% for the 4th year, 45% for the 5th year and 50% for the 6th year.
It’s a huge savings for policyholders. In addition, the insurance company will be spared the small claims & paperwork involved.
Usually while renewing one makes a declaration that he has not made any claim and based on claim free years he is entitled to NCB discount in the new policy.
Proof Of No Claims Bonus Admiral
The same way NCBs can also be transferred between vehicles – Surprise? Here’s how it can be done.
Let’s say you are upgrading from Wagon R to Swift Desire. You sell the vehicle to the dealer so that the resale value is adjusted in the cost of the new vehicle.
Now when you buy a new vehicle it will also be insured. So, suppose on your Wagon R policy, you have not made a claim in the last 5 years. You can contact the insurance company for something called an “NCB Certificate” or “NCB Retention Certificate”. Using this certificate you can get 50% discount on new Desire premium.
It is a certificate through which the policyholder can request the insurance company to transfer the NCB for a new vehicle.
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This certificate is issued to individuals (Policy Holders). So by using this certificate, you can save premium on new policy. This can be for any type of vehicle of any other company or with any other insurance company.
You can get the NCB Certificate by writing to the insurance company. You also need to attach certain documents such as a copy of the old car registration certificate, Form 29 (in case of buying a new vehicle & transferred NCB) and proof of ID.
I checked many websites but could not find an online process to apply for NCB Retention Certificate. Some online brokers like Coverfox have an online/email process.
TIP 1: Suppose you have an old Maruti 800 and plan to buy a Honda City. You can transfer the vehicle to a spouse or relative. The new owner will need to purchase a new policy for the vehicle in his name. You can get NCB Wagon R certificate and use it to save premium on Honda City. A 50% savings on a large vehicle will save you thousands.
Sending In Proof Of Your No Claims Bonus
TIP 2: Many times when buying a new vehicle, the dealer insists that the insurance be purchased through them. No problem. NCB certificate is valid for 3 years. Next year when the policy is due, use this certificate with the insurance company of your choice.
Hope the article clears all doubts about NCB & NCB Retention Certificate. So now save money when you change your vehicle.
Young? Separate your term insurance Deregulation of Interest Rates on Deposits How to claim car insurance? Financial products for financial freedom – Happy Independence Day ! How to plan for retirement for a late start? Comparison of Fixed Deposits Vs Mutual Funds : Part 2I can see zero dep cover cost at Rs 3780 cover cost in your case. In my case last year itself it was 3.9k and this year Royal Sundaram has quoted 4.5K for leather. Don’t understand why the variance in this figure, I think it has something to do with city classification.
Another stupid logic that most Insurance companies follow is that they calculate the age of vehicles from their date of manufacture when they should do so keeping in mind the date of registration. In my case the year of manufacture & year of registration were different and this made me ineligible for some extras on the cover.
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I managed to get a certificate from the insurance company at the time of renewal stating that my no claim bonus will be transferred to the new comprehensive insurance policy, if I buy a new two wheeler within 3 years from the date of the certificate.
Need help for my car insurance, My car is Toyota Etios, going to be 3 years old, I have ICICI in my first year and bharti axa in 2nd year, for third I have quotes from bharti, bajaj and tata AIG, this is bharti axa offer me :-
The same plan in Bajaj is 22k and in tata 18k .. is there something I am missing? Need an opinion from all you experts, thanks in advance! Need to make a decision in 2 days though
The same plan in Bajaj is 22k and in tata 18k .. is there something I am missing?
What Is Ncb In Car Insurance And How Does It Work?
Is the quote from Bajaj or Tata with any extras on cover or is it just a comprehensive Insurance quote?
The only reason from Bharti Axa to quote lower than others is to get business as they are relatively new in Motor Insurance. As your car is in its 4th year, you can still opt for zero depreciation add on cover. Does Bharti Axa have a cashless tie-up with the workshop where you usually service your car? Confirm that, get information from the workshop about the Bharti claim process. Once you are sure, then choose Bhari or stick to a well-known Industry.
Bharti does have a cashless tie-up with the garage but when I wanted to inquire more about which one is best in claims, the garage tried to advertise its own “new insurance division” and decided to put every other insurance firm down.
In this case, Bharti Axa is the best option you have for insurance. Do they have an online buying option?
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Just for information, how is workshop insurance different from industrial majors? It will be fun to find out where they beat the big players??
That’s the best part, they offer the same thing as others , offer NCB 1Claim Slab & 24 X 7 Roadside assistance including assistance instead of extra.
My Punto had an accident last Saturday. I have Insurance with Royal Sundaram with NCB of 20%. If I don’t claim, I am eligible for 25% NCB. Now that I have claimed Insurance, my NCB for next year will be zero. My insurance expires on June 16th and I am in the process of renewing. Got some quotes for the same too.
Now I have NCB certificate from my previous Ford Fiesta which is valid till May 2016 and eligible for 20% NCB. As Insurance comes free with Punto and on renewal with RS, NCB obtained is same as NCB certificate hence no bother to use. Now as my NCB will be zero, can I use this NCB certificate to renew the Insurance next year, this will definitely reduce the premium cost (and my liability). Although the comparison website has confirmed that I can use this certificate, I have yet to speak to the Insurer directly.
Transfer No Claim Bonus Service For Motor Insurance Policy
Any experts have thoughts on this? In theory everything looks right, in practice the Insurer will respect the suitability of the NCB certificate for the renewal of the Insurance is a question.
I have Honda Amaze I-dtec S variant 2 years and renewed insurance for the second time. Last 2 years I have used royal sundaram because they have relationship with honda, assure program, I have ncb last two years . This year royal sundaram has quoted me 16000 for renewal(0 dep). should i go with this or do i have better options. preferably a cashless policy.
Now I have NCB certificate from my previous Ford Fiesta which is valid till May 2016 and eligible for 20% NCB. As Insurance comes free with Punto and on renewal with RS, NCB obtained is same as NCB certificate hence no bother to use. Now as my NCB will be zero, can I use this NCB certificate to renew Insurance next year
Try using the NCB certificate with different insurance companies and they will renew you
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