NCB is the short form of No Claim Bonus. It is the discount given by the insurance company on insurance coverage to the insurance holder for making no claims. NCB is applicable when insurance is renewed, and when old vehicle is sold, provided no claims in the expiring insurance policy.
Eg: If you have no claims in the expiring insurance coverage, you will get discount when you renew the insurance next year. The discount on insurance is also gettable when you sell your old car, that has no claims and buy a new car.
No Claim Bonus (NCB) Rewards
This is how you get discount on insurance policy when you buy a new vehicle using the NCB.
|Percentage of discount on Own Damage Premium||No. of years of insurance when no claim made or pending|
|20%||One full year|
|25%||Two full years||35%||Three full years|
|45%||Four full years|
|50%||Five full years|
That means, if you renew the insurance policy of your car, which has completed a full year without any claims, will enjoy a 20% discount NCB. It is just the same when you sell your old car, which has completed a full year with no claims, and buy a new car. The discount ranges from 20% to 50%.
Can I transfer NCB from my old vehicle to new vehicle?
Yes, you can transfer NCB from your old vehicle to new vehicle provided no claim is made.
How can you transfer the NCB from an old vehicle to a new vehicle? - This is procedure
1. When you sell your old vehicle, both the ownership and insurance policy are transferred to the buyer's name. Take a photocopy of the new RC book which is now in new owner's (buyer's) name. It is needed for insurance purpose.
2. Go to the insurance company where your sold vehicle was insured and get NCB certificate from them. Remember the NCB certificate is valid only for three years.
3.When you buy a new vehicle, submit the NCB certificate and the sales certificate of your old car to the insurance company. Here, you can either stay with the same company or you can approach a new insurance company. It doesn't affect the NCB. It is advised to get manufacturer's insurance as they charge less than the other insurance companies.
What should you do if you want NCB for a new vehicle without selling your old vehicle?
If you have a car and you want to buy a new car without selling the excising car, you can get the benefit of NCB. For that you have to change the ownership of the old car to any of your close relatives. Then get NCB certificate from the insurance company and submit it when you apply for your new car's insurance policy.
Can I transfer NCB from my name to other's name?
No, NCB is only for the owner. It is a reward by the insurance company for better driving. So, even if the vehicle is sold out, the NCB can't be transferred from buyer's name to seller's name. Meanwhile, the insurance coverage and ownership name are transferred. NCB still stays in the name of the seller.
Should you go for small claims?
It is better to not make small claims. Suppose, if your vehicle met with an accident and if the estimated cost to repair your vehicle is Rs. 2000, it is better to not claim your vehicle. Because, you can save a lot and redeem your lost money when you pay insurance after getting NCB next year. If you claim for Rs.2000, you will not get NCB next year and will have to pay the whole insurance amount.
Will you be eligible for NCB if you renew insurance policy with another insurance company?
Of course, you are eligible, but you should have no claims in the expiring insurance policy.
When all you don't get NCB?
You are not eligible for NCB only in the following cases:
1. If you claim during a policy period, you won't be eligible for NCB in the corresponding year.
2. If you don't renew your existing insurance policy within 90 days.
3. If the new vehicle is not bought within 90 days after selling or transferring the old vehicle.
Can you transfer NCB from a bike to a car?
No, it is not possible to transfer NCB from a bike to a car or from a car to a bike. Because, vehicles must be in the same class.
Please note: You should know that your insurance agent may not tell you about the transfer of NCB from your old vehicle to the new vehicle. Because, the more we pay the more is the commission he/she gets.