NCB is a profit that accrues to the policyholder if no claims are made throughout a coverage interval. Hence, on the time of renewal, you get a reduction on the premium (NCB profit) which begins from 20% and will increase as much as a most of fifty% over each claim-free interval until 5 years. However, you have to know that the premium low cost will be claimed solely on the personal harm (OD) a part of the great motor insurance coverage coverage.
While renewing the coverage, the NCB profit is given to the motor insurance coverage coverage proprietor and to not the insured automobile. The NCB isn’t handed on to the brand new automobile proprietor. Hence, this turns into the explanation why the automobile proprietor can switch the NCB to his/her new automobile coverage.
You can retain the NCB earned in your outdated or current automobile’s insurance coverage coverage and get it transferred to a brand new automobile’s coverage by both promoting your outdated/current automobile or transferring it.
For occasion, let’s first assume that you’ve earned 50% NCB in your 5-year-old current automobile and now, you’ve offered that automobile and have purchased a brand new automobile. In such a case, whereas promoting the automobile and transferring the automobile’s insurance coverage coverage to the brand new proprietor, you’ll be able to simply retain the NCB earned in your outdated automobile’s insurance coverage coverage by making use of for an ‘NCB switch certificates’ to the earlier insurer. You additionally must submit all related paperwork associated to the sale of the present automobile, and so on., instantly after you promote the automobile to the brand new proprietor.
Now, by submitting the NCB switch certificates to the brand new insurer (assuming you took a brand new coverage from a unique insurer on your new automobile), you will get the NCB transferred to the brand new automobile’s insurance coverage coverage and get an enormous low cost on the premium charges.
However, in case you have not deliberate to purchase a brand new automobile instantly, you’ll be able to nonetheless declare NCB in your new automobile if bought inside three years. This is as a result of you’ll be able to retain your NCB for a most of three years after the issuance of the NCB switch certificates by the earlier insurer.
Secondly, there could be a scenario the place you won’t wish to promote your 5-year-old automobile however wish to get the NCB of that outdated automobile to get transferred to the brand new automobile as a way to scale back your new automobile’s premium because the coverage premium charges for a brand new automobile are increased as in comparison with premium charges provided by insurers for an older automobile. In such a scenario, you’ll have to switch your outdated automobile to another person in your loved ones. In different phrases, you should change the possession of the outdated automobile to another person inside members of the family. This is since you can’t use the NCB earned on the outdated automobile to get a reduction on the premium paid for a brand new automobile until you stay the proprietor of the outdated automobile.
Sanjiv Bajaj, Joint Chairman & MD, Bajaj Capital mentioned, “You can switch the NCB of your personal automobile automobile coverage (offered it is offered) to a brand new personal automobile automobile throughout the identical class for a similar proprietor. However, you can not swap between the automobile lessons to switch the NCB.” This means you can not switch the NCB collected on the two-wheeler coverage to a brand new personal automobile insurance coverage coverage.
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