4 min read
Updated on Sep 23, 2022
While costs, in general, tend to climb, car insurance provides a distinctive opportunity in that premiums can potentially decrease year after year owing to the NCB.
NCB (No-Claim Bonus) is a term used in the insurance industry to refer to the reduction in annual car insurance premiums due to no claims made during the relevant policy year. This means that if you do not file any claims within the policy period, your renewal rates will be lower than they otherwise would have been. It is a system that all insurance companies adhere to.
Smart policyholders are aware of this no-claims discount and understand its importance in netting savings in future years when they renew their car insurance policy. However, there are several features of NCB in car insurance that new policyholders may be unfamiliar with, one of which is the transfer of the No-Claim Bonus from one car to another. This blog will be a guide on this process.
According to the IRDA (Insurance Regulatory and Development Authority), the No-Claim Bonus belongs to the individual policyholder, not the car. This implies that when a car is passed on to another individual, just the insurance coverage may be transferred. The No-Claim Bonus in the current policy stays with the original policyholder.
Generally, you may transfer your existing NCB to another vehicle. However, if you change insurance provider before the end of the year, you will not be eligible for the No-Claim Bonus for that particular year.
If you are looking to transfer your NCB to another car without changing providers, you can contact your insurance company or agent and ask for the details of the process. Some companies may include your confirmation of no raised claims in the renewal statement for your motor insurance. You can provide the same during the transfer as proof of zero-raised claims. The only requirement is that you need to be the policyholder of both the insured car at the point of NCB transfer.
If you have been using the same insurance company for a long time, you can still buy from a new provider and get NCB. However, verification from your insurer will be required.
To relocate the NCB from the current insuring firm, the primary car owner must file Forms 29 and 30 – together with a statement explaining the application. The insurance company would be required to provide an NCB certificate that is effective for three years. This document must be shown to the new insurance firm that will be covering your car. When purchasing auto insurance digitally, the certificate is not necessary; instead, a statement from the policyholder is sufficient.
Under no circumstances should the policyholder conceal any information, such as raised claims- the new insurance provider will undoubtedly verify the information provided by the prior insurance company.
The No-Claim Bonus on a corporate automobile is only transferrable to another vehicle if the employee is specified as the policyholder on the employer’s insurance plan. The benefit of business auto insurance coverage is that if NCB accumulates, the insurer merely requires verification from the company to transfer the No-Claim Bonus.
Even if you possess absolutely no bad intentions and put any amount for NCB when transferring insurance coverage, the repercussions might be severe. If you declare your NCB incorrectly, your insurance company may dismiss your auto insurance claim entirely. That implies that if you state the incorrect NCB while applying for insurance, you’ll get the same coverage as if you didn’t apply at all.
Whether you are transferring auto insurance policies, make sure you mention if you have filed any claim with your former insurer in the preceding year. Insurance firms can readily obtain this information, and although you may receive the coverage, there will be a difficulty when it comes time to file claims; therefore there is no purpose in concealing or providing wrong data.
If you are looking to save on your car insurance then, NCB can be of great help. The No-Claim Bonus that you have earned can be transferred to the insurer of your new car which you are about to buy. This is absolutely legitimate and it saves you money, too. So, if you just changed your car, then there is no reason why you should not try this option.
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
Table of Content Types of Car Insurance Policies Bharti AXA Policy Download - Steps to Consider Is the hard copy of the Bharti AXA car.
Table of Content Third Party Car Insurance Benefits of Third-Party Car Insurance Own Damage Insurance for Car Why Should You Buy Own Damage Car Insurance:.
There are several Misconceptions About Voluntary Deductibles in Car Insurance Policy. Clearing the misunderstanding pertaining to this commonly used terminology in car insurance in this.
With everything around us being driven by technology, why should insurance be any exception? The Indian insurance sector is soon catching up with telematics solutions.
Have you ever considered a situation when the passengers of a four wheeler may suffer injury due to an accident. Is there a passenger cover.
Consumables Add-On Cover in Car Insurance Policy - Why You Should Buy Them You would do anything to maintain the dream car that you purchased,.
Long-Term Car Insurance Policy Advantages and Benefits Do you know buying a long-term car insurance policy can get you more benefits than buying regular yearly.
Does Your Driving Behavior Also Affect the Premium of Your Car Policy? Do you know that your car insurer can charge you a premium depending.
Speak to our advisor
Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2022 Mahindra Insurance Brokers. All Right Reserved.