What Is No Claim Bonus In Vehicle Insurance?
With lakhs of people purchasing four-wheeler vehicles in India, the importance of vehicle insurance has also become extremely imperative. And the best part about getting insurance right now is that it will provide you with many no-claim bonus benefits. If you are wondering what NCB is and what it entails, then continue reading this post.
What is NCB?
No claim bonus is a reward that you receive from your car insurance company when you don’t file for claims in a year. For this reward, you will be eligible for a discount on the premium after you have renewed your insurance.
What are the benefits of NCB?
Discount on Policy Renewal
NCB is basically a reward you receive for not claiming your insurance cover and for being a responsible owner of your car. This will help you pay less premium on your renewed policy.
Save On Your Premium
The best part of the no-claim bonus is that you will be able to save up at least 20 percent of the annual premium of your car insurance.
Can Be Easily Transferred
Regardless of whether you are changing your car or your insurance, the whole process of transferring the no-claim bonus is quite hassle-free. You will only have to make sure to shift the policy before the present one expires.
How can you transfer NCB to a new car insurance?
In order to transfer NCB to a new car insurance, you need aNCB Transfer certificate from your old insurance company in order to continue the benefits. Keep a note that there shouldn’t be a time gap of 90 days or more between the renewal date and expiry date of your insurance policy. However, its important to understand, in case of sale of car, NCB benefits cannot be transferred to the new owner of the vehicle, as NCB is linked with the car’s owner and not the vehicle.
You can transfer your bonus by simply submitting the necessary documents and agreement along with forms 29,30. You also need to write a letter requesting the transfer of your NCB.
After this, the insurer will issue your certificate and you will have to submit it to the insurance company.
What are the documents required for NCB transfer?
Some of the documents that are required for NCB transfer include –
- Application for No claim bonus transfer
- A copy of existing car’s insurance policy
- Booking receipt in case of new car purchase
- No claim bonus certificate from the current insurer.
Once the documents mentioned above have been submitted, remember that your no-claim bonus shall be transferred to your new car. Depending on the current NCB certificate, you will be able to get the benefit of a discount on the insurance premium for the car.
Why Should you Opt for NCB Protection Cover?
A No-Claim Bonus Protection cover offersyou an extra cushioning. It helps you keep the bonus factor intact even if few claims are raised during the insurance period(dependson terms &conditions of policy). If you would like to save your premiums or benefit from renewal discount even if you have raised a claim during your policy period, then you must opt for a NCB protection cover.