No Claim Bonus or NCB is a reward given by an insurance company to an insured for not raising any claim requests during a policy period. The NCB is a discount ranging between 20%-50% and is given to the insured while policy Renewal.
NCB in Vehicle Insurance - How it works?
While everything else around you rises in price, your Vehicle insurance gives you a benefit by actually giving you the choice to reduce your Vehicle insurance premium. How does it work, you ask?
Well, it works almost like a Benefit system. You start by gaining a 20% NCB discount if you haven’t made any claims for your first policy year. Consequently, you keep gaining an additional 5% from your second consecutive year of making no claims. This can go about a reduction of 50% in your sixth consecutive year. the better you protect your Vehicle- the better it works out for you in the long run.
How to transfer NCB to new Vehicle Insurance?
This depends on whether you're buying your new vehicle
insurance online or through an agent, or offline. In case
you are buying your new vehicle insurance policy offline or via
an agent, you will need to transfer your No Claim Bonus
by submitting your buyer-seller agreement- Forms 29 and
30 along with a letter requesting the transfer of your NCB
from your existing insurance company.
The respective insurer will then issue an NCB certificate
which you'll need to submit to your new vehicle insurance
company. However, if you're going to buy your new vehicle
insurance online, you don't need to do any of this. All you
need to do is declare the right NCB and old policy number
and name of the insurer and your new insurance company
will manage the rest of the process
Documents required for NCB Transfer
As far as the document is concerned you have to give the
following documents along with the application:
Copy of delivery note that you've received for the sale
of the old Vehicle
• Copy of insurance policy of the old Vehicle
Copy of the booking form that you received for
purchasing the Vehicle
After the submission of the above documents, no claim
bonus will be transferred to the new Vehicle. Based on the
existing NCB certificate the customer can avail the benefit
of the discount on the insurance premium for the new Vehicle.
