Know all about transferring NCB to a new Car or insurance provider?
The No-Claim Bonus (NCB) refers to the discount on car insurance premiums offered by insurance companies if no insurance claims have been made in the relevant year. In general, it ranges between 20% and 50%. It is an important tool that results in financial savings when renewing your car insurance online or offline. It is essentially meant to reward good driving practices.
The NCB cover is available with a standalone or comprehensive car policy and not with third-party car insurance. While the majority of policyholders are aware of this coverage and understand its importance in reducing outflows of funds, they are unaware of some of its features. One of them is the ability to transfer NCB in car insurance to a new car or insurance provider.
Have you ever wondered how to transfer your NCB in car insurance to a new car or insurance provider? Well, read on to learn the process in detail.
IRDAI rules for NCB transfer
As per the Insurance Regulatory Development Authority of India (IRDAI) rules, the NCB in car insurance belongs to the policyholder and not to the car. This implies that in the event the car is transferred to another owner, only the insurance coverage will be passed on to the new buyer and not the NCB advantage.
However, if you decide to change insurance companies, you can transfer your NCB to your new car or to a new insurance provider.
Transferring NCB to a new insurance provider
You might want to switch from your current insurance provider to another. Transferring NCB to a new insurance provider is a pretty easy process. Although the process differs if one purchases the new car insurance online as compared to if it is purchased offline or through an agent.
In case you are purchasing your new car insurance online, simply share the following details with the new insurance company:
- Correct NCB details
- Name of previous insurance provider
- Old policy number
This will enable the insurance provider to automatically transfer your NCB in car insurance online to your new insurance provider.
To transfer the no-claim bonus in case the new car insurance is purchased offline or via an agent, follow the steps given below:
- Review your existing policy: Firstly, review your existing policy to ensure that you are eligible for a no-claim bonus. For this, you should not have made any claims during the policy term.
- Get in touch with your old car insurance provider: Inform your current insurance provider of your intention to transfer your NCB.
- Request for transferring NCB: Make a request for transferring NCB and submit all the required documents. You’ll be granted a “no-claim bonus certificate” from the insurer.
- Submit this certificate to your new car insurance provider.
- The new insurer will transfer the NCB to your new car.
Ensure that you do not conceal any information regarding claims made in any previous year or share incorrect details by mistake with your new insurance provider. The new insurance company can easily verify the details you have submitted whether you purchase your car insurance online or offline.
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List of documents required for transferring NCB
Following are the documents that are generally required for transferring NCB from your current insurance company to your new insurance provider-
- Transfer application
- A photocopy of your car insurance
- Buyer-seller agreement (Forms 29 and 30)
- A photocopy of the old registration certificate/ownership transfer certificate
- A copy of the delivery note
- A copy of the booking receipt
- NCB certificate
Transferring NCB to a new car
If you purchase a new car to replace your old car, you might want to transfer your NCB in car insurance to your new vehicle. For this purpose, simply get in touch with your insurance company and ask them about their procedure for the same. Some insurance providers include in their ‘car insurance renewal statement’ your confirmation that no claims have been raised. This can act as proof of zero claims. The only condition is that at the time of the transfer of NCB, you should be the policyholder of both cars. Also, note that you cannot transfer your old car’s NCB to your new car in case you continue to hold ownership of your old car.
Benefits of transferring NCB
Listed below are some of the major benefits of transferring your existing NCB to another car or car insurance provider –
- Reduces your premium costs: The NCB discount varies from 20% to 50% and can significantly lower your premium costs.
- Better coverage: You can transfer your NCB and choose a new insurance provider that provides better coverage.
- No loss of your NCB benefits: By transferring your NCB, you will not lose the NCB you have accumulated as a result of good driving practices.
- Maintaining the reward: NCB is the bonus
The No-claim bonus is a great tool to help you save on your insurance premium. It can be transferred to a new car or a new insurance provider in case you decide to shift to another insurance company. This can be done whether you purchase your new car insurance online or offline. Transferring your NCB in car insurance to a new car or insurance provider might seem like a daunting task, but with the right information, you can successfully transfer your no-claim bonus and enjoy the advantage of lower premiums.By following the above-mentioned procedure, you can easily transfer your NCB and enjoy the benefits of a good driving record.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.