Know About NCB Certificate in a Car Insurance
A No-Claim Bonus (NCB) Certificate in car insurance is a document issued by your previous insurance company.
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What is a No Claim Bonus in Car Insurance?
NCB or No Claim Bonus in car insurance refers to the discount given in the form of a bonus for driving your car safely and not raising a claim in a policy year. You can avail of this discount at the time of car insurance renewal and can accumulate it up to 50% over the term of 5 claim-free years.
How to Get an NCB Certificate in Car Insurance?
Follow these simple steps to obtain an NCB certificate from your insurance provider:
- Contact your insurer when cancelling or switching your car insurance policy.
- Provide the necessary information, such as your policy number, personal information, and vehicle details.
- Your insurer will then evaluate your claim history to check if you are eligible for an NCB certificate.
- Upon successful validation, raise a request for the NCB certificate and provide the required documents.
- Once you obtain your NCB certificate, you may submit it to your new insurer to receive applicable discounts.
How to Transfer NCB in Car Insurance?
You can initiate an NCB transfer to a new car or insurer at the time of car insurance renewal, either online & offline. However, you cannot transfer it to another person since the NCB is attached to the policyholder.
For an online NCB transfer, provide your previous policy details, correct NCB%, and the previous insurer's name with your new insurer when renewing your policy. The insurer will then transfer your existing NCB to your new policy.
In case of an offline NCB transfer, contact your old insurer to get an NCB certificate, which you have to present to your new insurer for the NCB transfer.
Documents Required to Transfer NCB Certificate
To transfer your NCB certificate, you should provide the following documents-
- Sale Letter- This is a document issued by the Regional Transport Office (RTO) in the name of the car buyer and acts as proof that you have handed over the car to the new buyer. Usually, it is a transfer agreement of all the liabilities of the car to the buyer.
- Previous Year Policy (PYP)- PYP refers to the insurance policy documents that you had issued for your car from the last insurer.
- Declaration Letter- It is issued by a previous insurer where you have to acknowledge the terms & conditions mentioned in the documents. Ensure that you have provided the correct information as wrong or misleading information gives a right to your new insurer to deny your claims anytime.
What is an NCB Protector Add-on Cover?
NCB in car insurance is only valid for a claim-free policy year and becomes zero upon filing a claim. The NCB protector add-on allows you to retain your accumulated NCB even after a claim.
You can purchase this highly useful NCB Protector add-on for a nominal additional amount at the time of buying/renewing a comprehensive car insurance plan.
Important Things to Know About NCB in Car Insurance
Here are some essential things you must remember about NCB in car insurance:
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You Can Reduce Your Own Damage Premium Up to 50%
You can earn an NCB discount of up to 50% by the end of five years of making zero claims. If you are already earning a 50% discount for not raising a single claim in the past 5 years, you cannot earn any further concessions. However, this 50% NCB continues to stay until you are not raising a claim. This is how NCB discount works in car insurance.
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NCB (No Claim Bonus) is Applicable Only for Own-damages
Your NCB discount is not applicable for third-party car insurance, that is the mandatory cover in India. Therefore, the earned NCB percentage is calculated on only the own-damage premium. Usually, car owners get confused while calculating their claim bonus and wonder why there is an error in a discounted amount.
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You Can Transfer Your NCB When You Buy a New Car
You can easily transfer your NCB from an old car to a new car. An NCB certificate in car insurance belongs to the car owner but not the car itself. However, the NCB certificate is not transferable from one owner to another owner of the car.
Therefore, you can easily transfer the accumulated NCB discounts on your old car to a new car and this is valid for three years.
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Do Not Write Incorrect No Claim Bonus Percentage
While switching your car insurance, never write any random digit for NCB percentage as it can lead you into trouble. In case of incorrect NCB, your insurer can reject your claim in the future. In case you are switching your insurer, give them the correct information if you have raised a claim with your previous insurer in the policy tenure.
Your new insurer will cross-check all the information while offering you the policy. So, there is no point in hiding it.
Conclusion
The NCB certificate in car insurance is a crucial document that serves as a proof that you drive carefully on the road and maintain a claim-free record. By securing it, you can make the most of your car insurance without compromising on coverage & budget. Remember that the particular steps & requirements to obtain an NCB certificate vary based on the insurance company and policy terms & conditions. It is always best to contact your insurer directly for specific information.
