Vehicle NCB Transfer: If you are thinking of buying a new vehicle and want to avail the benefit of Insurance No Claim Bonus (NCB) of your old vehicle, then this news is for you. Insurance policyholders get no claim bonus if they have not filed any claim during the entire year. This benefit is offered on Own Damage (OD) premium and can result in huge savings on a new policy.
NCB percentage increases every year
NCB is zero in the first year of taking the policy, but it increases every year if you do not file any claims. If you do not file a claim in the first year, you get NCB up to 20 percent. In the second year it increases to 25 percent, in the third year to 35 percent, in the fourth year to 45 percent and in the fifth year it reaches a maximum of 50 percent. This means that without any claim for five years, you can get a discount of up to half the price on your own damage premium.
How to transfer no claim bonus?
The biggest advantage of NCB is that it is not linked to the vehicle but to the policyholder. This means that if you are selling your old car and buying a new car, you can transfer your NCB. However, this applies only to vehicles of the same category. That means, if you are buying a new car by selling your old car, then NCB can be transferred. But it will not transfer between bike to car or car to bike.
NCB will not be transferred if the ownership of the vehicle changes
It is also important to keep in mind that NCB is transferred only when the owner of the vehicle is the same person. If the owner of the vehicle changes, NCB cannot be transferred. Therefore, whenever you sell your old car and buy a new car, keep NCB transfer in mind.
How to complete the process?
To transfer NCB, you will have to cancel the insurance policy of your old vehicle and obtain the NCB certificate from the insurance company. This certificate has to be presented while taking the insurance policy of a new vehicle. This is an easy process, but it requires some caution.
Tags: auto news, Car Bike News
FIRST PUBLISHED: December 1, 2024, 16:57 IST