However, this does not mean that you can suppress any claims made earlier, in order to get NCB as your new insurer can cross-verify such information with your previous insurance company. If you are buying the policy online, however, it is likely that you will not have to submit the certificate – your NCB will be transferred based on your declaration. If you are switching to a new insurer at the time of policy renewal for your existing car, you only need your last year’s policy document or renewal notice that mentions the NCB you are eligible for. Next, the insurer has to issue an NCB certificate, which is valid for three years and you need to submit the same to your new insurer. “One, you have to submit forms 29, 30 (buyer-seller agreement form) along with the letter requesting for transfer of NCB to your existing insurer,” says Yashish Dahiya, CEO, You have to follow a simple procedure to effect this transfer when you are selling your old car and buying a new one.
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At time of renewal, the heir is free to choose any insurance company he/she wishes to go with,” says Dua. “Since the car ownership of the deceased will be transferred to the legal heir, so will the policy along with its applicable NCB for that particular car. What is not allowed is a person-to-person transfer, except to the legal heir in case he/she inherits the car on the policyholder’s death. “Here, the applicable discount on the policy premium for you is 50% of Rs 15,000 which is Rs 7,500, so you end up paying only Rs 10,500 instead of Rs 18,000,” says Varun Dua, CEO and founder of web aggregator You can transfer the NCB earned on the previous car policy to the new car policy and claim the NCB discount on the first premium payable for the new policy.
Now, suppose you buy a new car in 2015 and the premium for this car’s policy is Rs 18,000 (excluding service tax), out of which Rs 15,000 is the premium for the own damage component. If you never made a claim during the period, you would have earned an NCB discount of 50%. NCB transfer is a fairly simple process: Assume you had purchased a car in 2008, which was then sold in 2013 on or after the 5 Therefore, you get to retain your NCB if you replace your existing car with a new one or if you switch to another insurer at the time of renewal of the policy. This is the key feature of NCB – it is associated with the policyholder and not the vehicle. This discount increases steadily with every claim free year up to a maximum of 50% at the end of five claim free years. You can claim a starting NCB of 20% on the first renewal of the policy provided there has been no claim during the past year. When you buy your first comprehensive motor insurance policy, you are normally (except in the rare case of NCB transfer) not eligible for any NCB discount on the premium paid because you have no claim-free record as such. That is, NCB – which is a discount ranging from 20-50% on premium payable cannot be claimed as a right but has to be earned by maintaining a claim-free record. In motor insurance, No Claim Bonus, as the name suggests, is the insurer’s reward to the policyholder for not making a claim in the preceding years. NCB is a discount only available on renewal of policy Here are seven aspects of NCB you need to be aware of: