Benefits of No Claim Bonus in car insurance
Here are the benefits of No Claim Bonus in a car insurance policy:
NCB makes your policies more affordable. You save 20-50% on your car insurance premiums during the policy renewal if you have a zero-claim record.
Earn rewards for maintaining your car properly
Insurers offer NCB as a reward to the policyholders for driving safely and maintaining the vehicle properly. These factors make valid proof because you make no claims on your car insurance policy. Hence, you earn the reward for having good driving history.
Granted directly to the policyholders
The insurer grants the No Claim Bonus in a car insurance directly to the policyholder and not the insured vehicle. Hence, if you decide to sell the vehicle, the No Claim Bonus will remain intact. But you cannot transfer the NCB to a new owner.
Transferable to another insurer or car
In case you plan to buy a new car, you can transfer the NCB to the new policy. Also, if you decide to switch to another insurer, you can still transfer the NCB.
What is NCB protector in car insurance?
You get NCB protector as an add-on cover on a comprehensive car insurance or standalone own damage car insurance policy. This add-on cover retains the NCB value even if you have made claims in a policy year.
How to transfer NCB to a new car insurance policy?
The process of transferring an NCB to a new car insurance policy is simple. You can transfer the No Claim Bonus in three ways: online, offline or through an agent.
For transferring the No Claim Bonus online, you need to inform the new insurance provider. Provide details like the exact NCB, the former motor insurance company’s name, and the last policy number. The new insurance provider will transfer the No Claim Bonus to the new insurance plan.
For transferring NCB offline or through an agent, follow these steps:
Step 1: Contact the former motor insurance company.
Step 2: Make an NCB transfer request and produce all necessary documents.
Step 3: Following this, the company will provide a No Claim Bonus certificate.
Step 4: Submit this certificate to the new insurance provider to complete the NCB transfer process.
Documents required for NCB transfer
Here is a list of documents required to transfer NCB in insurance:
- Photocopy of car insurance
- Copy of car delivery receipt
- Transfer application
- NCB certificate
- Buyer-seller agreement (Form 29 and 30)
- Copy of ownership transfer certificate
- Copy of booking receipt in case of purchasing a new car
When is NCB in insurance applicable?
NCB (No Claim Bonus) is applicable in insurance when you do not make any claim in a policy year. It is a reward or discount given by the insurance company for not claiming during the policy term. NCB in insurance is usually applicable when renewing a policy and can result in significant savings on premiums.
Important things to know about NCB in insurance
NCB is a discount given by insurers on the subsequent policy premium. Some important things to note about No Claim Bonus are:
- The discount starts at 20% and increases up to 50% based on the consecutive claim-free years.
- NCB is applicable only to the own damage premium and not on third-party premiums.
- Policyholders can transfer their NCB while switching their insurance provider for the same car.
- NCB in car insurance is an essential consideration when renewing your policy.
Is NCB applicable to third-party insurance?
No, you do not get the benefit of NCB on third-party insurance. You get the benefit of NCB on a comprehensive car insurance or standalone own-damage insurance policy.
How to transfer No Claim Bonus (NCB) to new car insurance?
If you are looking to transfer your No Claim Bonus (NCB) to a new car insurance policy, then you only need to the following things.
The first step is to acquire the NCB certificate from your existing insurer. Then you need to present the certificate to your new insurer when purchasing a new policy. By doing so, you can enjoy lower premiums on the new policy. Many a times car owners in India forget to transfer their NCB to their new insurance policy, thereby losing out on benefits. Therefore, ensure to make the transfer properly to take advantage of the NCB. Follow these simple steps and enjoy discounted premiums on your new car insurance policy.
What causes the NCB termination?
The NCB gets terminated if any of the following situations arise:
- In case a policyholder does not renew the insurance plan within 90 days from its expiry date.
- In case the policyholder files an insurance claim during the policy year.
How is NCB calculated?
No Claim Bonus (NCB) is calculated on the basis of the number of claim-free years of the policyholder. The longer the policyholder goes without making a claim, the higher the percentage of NCB they will receive on their car insurance policy.
NCB in insurance ranges from 20% to 50%, depending on the insurance provider and years of claim-free driving. Insurer applies the NCB percentage to the own damage premium of the policy, resulting in reduced insurance premiums. But you must note that if you make any claims, the NCB percentage will reset to zero. Therefore, it is essential to drive safely and avoid accidents to enjoy the benefits of NCB in car insurance. Keep a track of the number of claim-free years to ascertain your NCB percentage and enjoy discounted premiums while driving safely on the roads.
Number of years
Addition of No Claim Bonus percentage
One claim-free year
Consecutive two claim-free years
Consecutive three claim-free years
Consecutive four claim-free years
Consecutive five claim-free years
How to check NCB in car insurance?
Refer to the NCB slab provided by the insurer when buying the car insurance policy. You will also find the NCB calculation on the policy document. When you renew your car insurance policy online, you will see the applicable NCB on the webpage. You can also check with your agent or insurance executive to know the NCB earned.
Terms and conditions of NCB transfer
Here are the terms and conditions of an NCB transfer that one needs to keep in mind:
- One can transfer the NCB from one vehicle to another, provided the policyholder remains the same.
- One can transfer NCB from one insurance provider to another only during the policy renewal.
- Policyholders need to submit the NCB certificate online from the current insurer or apply offline.