Go Back   Team-BHP > Team-BHP > Team-BHP Advice > On buying a car


Reply
 
Thread Tools Search this Thread
Old 29th July 2009, 23:38   #226
Senior - BHPian
 
r_nairtvm's Avatar
 
Join Date: Feb 2009
Location: Dubai/TRV/BLR
Posts: 1,614
Thanked: 1,348 Times
Default

Hello Guys,

Please excuse me if all this information is already available in the thread, please treat this as a refresher

I have put down some of the FAQs on NCB below

What is No Claim Bonus?

An insured becomes entitled to No Claim Bonus (NCB) only at the renewal of a policy after the expiry of the full duration of 12 months, if the insured has not claimed a single claim in the duration. As per the schedule of tariff), NCB can be earned in the Own Damage section of Policies covering all classes of vehicles but not on Motor Trade Policies (Road Transit Risks / Road Risks / Internal Risks) and policies that cover only Fire and / or Theft Risks.

Is my No Claim Bonus transferable?

Yes, in case you are changing from one insurance company to another and have accrued some NCB from them, make sure that you get the benefits for your NCB with new company too as this is a universal practice and so provided for in the India Motor Tariff (IMT)

The entitlement of NCB shall follow the fortune of the original insured and not the vehicle or the policy. In the event of transfer of interest in the policy from one insured to another, the entitlement of NCB for the new insured will be as per the transferee’s eligibility following the transfer of interest

What is the rate at which NCB is transferred from my previous insurance company to the new Insurer?

The discount rate remains the same, provided you show evidence that you are entitled to No Claim Bonus from your previous motor insurance company. Evidence can be in form of;
  1. A renewal notice or
  2. A letter confirming the NCB entitlement from the previous insurer
  3. A written declaration
NCB in Motor Insurance in India I believe is still governed by IMT (India Motor Tariff)

So I have uploaded a reproduction of the relevant sections of the IMT here. Makes good info for all vehicle owners.

Interestingly outside of India, insurers like Axa, AIG etc are selling "premium" motor insurance products with PNCB (Protected NCB) where scale backs for claims are also on regressive scale based on the amount of Claim, Frequency, whether at fault or otherwise etc.

I am not too familiar with the scene in India now and would like to know if this type of policies are available in the market.

Take Care & Best Regards

Ram
Attached Files
File Type: doc IMT No Claim Bonus.doc (35.0 KB, 1396 views)
r_nairtvm is offline   Reply With Quote
Old 30th July 2009, 10:50   #227
Newbie
 
sa_kl14's Avatar
 
Join Date: May 2009
Location: Bangalore
Posts: 16
Thanked: 0 Times
Default

Ram,

Thank you for the details. Motor insurance in India is now fully de-tariffed and is under file & use system. General Insurance companies in India are using different base rates for calculation of premium now. However, certain guidelines such as NCB, depreciation tables etc. are still based on the earlier IMT.

As far as I know, NCB protection is not yet offered by insurance companies in India. Some private players are covering road side assistance costs as part of the policy. Again, I am not sure if courtesy car (replacement car costs during own car repair) coverage is offered. Insurers out side India offer such extended coverages with the base motor cover but at a definite additional premium. For example, the customer pays a small additional premium to protect NCB and the insurer allows for some claims (with a limit of claim amount / no. of claims) to be made without affecting the NCB status.

Apart from NCB, one should also look at Voluntory Deductible as a saving measure. For example, a VD of Rs.7,000/- on your car policy can fetch a discount of Rs.2,500/- on OD premium. VD is the amount the customer will bear in case of any claim (please note that this will be on top of the standard deductible on the policy). Though all PSU companies offer all slabs of VD, I found that private players were hesitant to provide VD beyond a level - this action beats my logic because VD improves moral hazard on a policy.
sa_kl14 is offline   Reply With Quote
Old 24th August 2009, 18:08   #228
BHPian
 
IndigoXLGrandDi's Avatar
 
Join Date: Aug 2009
Location: Solapur (MH-13)
Posts: 867
Thanked: 130 Times
Default

Hi All,
I have a doubt regarding the NCB.
We have 2 Indigos.
The Indigo LS was bought in my Dad's name on 13th May 2004.
Then we bought Indigo XL Grand DiCOR in my Dad's name on 3rd May 2007.
In September 2007, the Indigo LS (Bought in 2004) was transferred to my name. Now the RC has my name as Second Owner. But the Insurance Papers still say that my Dad is the owner. i.e. I did not transfer the Insurance Policy to my name.
While renewing the Insurance policy of Indigo LS in 2005, the Ins Co. misprinted the Manufacture Year as 2000 instead of 2004.
Now I want to change the name on Insurance Papers from my Dad's to mine and the Manfr Year from 2000 to 2004.
My Queries--
1. If I change the name on Ins Papers to mine, would the NCB be carried forward (since I live with my parents but am the Second Owner)? If not, should I get the NCB Certificate in my Dad's Name, Cancel the Policy in his name and Take out Fresh Policy in my name? When I renewed the policy in my Dad's Name on 19th May 2009, the Premium came out to be Rs.4,300/-+ (Rs.4,381/- to be precise).
And use the NCB Certificate (in my Dad's name) to reduce the Premium on Indigo XL (bought in 2007) while renewing it next year?
Is it beneficial to cancel the Policy in Dad's name and take New Policy in my name since the Current Premium Amount is just Rs.4381/-.

2. If the Manufacture Year is changed from 2000 to 2004, would the Premium be increased (The manfr Year was misprinted as 2000 instead of 2004 on Ins.Papers)?
IndigoXLGrandDi is offline   Reply With Quote
Old 24th August 2009, 20:49   #229
Senior - BHPian
 
MileCruncher's Avatar
 
Join Date: Jan 2009
Location: Mumbai
Posts: 3,977
Thanked: 344 Times
Default

I have two cars and one two wheelers in my name, whereas my wife has 1 car in her name. Is it possible to have a composite insurance in our case?
MileCruncher is offline   Reply With Quote
Old 24th August 2009, 23:59   #230
Senior - BHPian
 
r_nairtvm's Avatar
 
Join Date: Feb 2009
Location: Dubai/TRV/BLR
Posts: 1,614
Thanked: 1,348 Times
Default

IndigoXL

I have tried to answer your questions below (in Italics)

IndigoXLGrandDi;1447552]Hi All,
I have a doubt regarding the NCB.
We have 2 Indigos.
The Indigo LS was bought in my Dad's name on 13th May 2004.
Then we bought Indigo XL Grand DiCOR in my Dad's name on 3rd May 2007.
In September 2007, the Indigo LS (Bought in 2004) was transferred to my name. Now the RC has my name as Second Owner. But the Insurance Papers still say that my Dad is the owner. i.e. I did not transfer the Insurance Policy to my name.

The above practice has actually made your insurance valueless. The Insurance Policy will be valid only if the vehicle is also in the name of the Insured named in the policy.

While renewing the Insurance policy of Indigo LS in 2005, the Ins Co. misprinted the Manufacture Year as 2000 instead of 2004.
Now I want to change the name on Insurance Papers from my Dad's to mine and the Manfr Year from 2000 to 2004.
My Queries--
1. If I change the name on Ins Papers to mine, would the NCB be carried forward (since I live with my parents but am the Second Owner)? If not, should I get the NCB Certificate in my Dad's Name, Cancel the Policy in his name and Take out Fresh Policy in my name? When I renewed the policy in my Dad's Name on 19th May 2009, the Premium came out to be Rs.4,300/-+ (Rs.4,381/- to be precise).
  1. NCB follows the fortunes of the original insured/owner. So you will not be eligible for the NCB
  2. You should cancel the Policy in your Dad's name and make a new one in your name. If you have an NCB from some policy in your name you can use it.
  3. You may be eligible for a cancellation refund depending on time left on the policy
  4. You should get an NCB Certificate in your dads name and keep it with you to use on the renewal of his other insurance (NCB can be kept in abayence for two years).
And use the NCB Certificate (in my Dad's name) to reduce the Premium on Indigo XL (bought in 2007) while renewing it next year?

See my answer 4 above

Is it beneficial to cancel the Policy in Dad's name and take New Policy in my name since the Current Premium Amount is just Rs.4381/-.

Actually you don't have an option. If you want a valid insurance policy for the car in your name, the policy should be in your name as well.

2. If the Manufacture Year is changed from 2000 to 2004, would the Premium be increased (The manfr Year was misprinted as 2000 instead of 2004 on Ins.Papers)?

No. Its a mistake made either at data entry stage or at time of filling out the proposal. Correction endorsement for this should be issued free of cost by the Insurance Company.


Trust this clarifies your questions.

Please get the insurance for your car in your name urgently. God forbid nothing should happen. But I have seen people's lives ruined by this - especially if there are any accidents involving Third Party lives or properties.

Best Regards & drive Carefully

Ram

Thanks and Best Regards

Last edited by r_nairtvm : 25th August 2009 at 00:04.
r_nairtvm is offline   Reply With Quote
Old 25th August 2009, 00:09   #231
Senior - BHPian
 
r_nairtvm's Avatar
 
Join Date: Feb 2009
Location: Dubai/TRV/BLR
Posts: 1,614
Thanked: 1,348 Times
Default

Quote:
Originally Posted by MileCruncher View Post
I have two cars and one two wheelers in my name, whereas my wife has 1 car in her name. Is it possible to have a composite insurance in our case?
For two cars and the two wheeler in your name you could ask for a Fleet Policy. But there is nothing beneficial about it. Only thing will be that all insurances expire at the same time and thus you can avoid multiple trips to insurers for renewal.

The Vehicle in your wife's name will have to have a separate insurance policy.

Best Regards & Drive safe

Ram
r_nairtvm is offline   Reply With Quote
Old 25th August 2009, 09:45   #232
Senior - BHPian
 
rjvora_2000's Avatar
 
Join Date: Mar 2008
Location: Mumbai/Mulund
Posts: 1,655
Thanked: 37 Times
Default

Quote:
Originally Posted by IndigoXLGrandDi View Post
Hi All,
I have a doubt regarding the NCB.
We have 2 Indigos.
The Indigo LS was bought in my Dad's name on 13th May 2004.
Then we bought Indigo XL Grand DiCOR in my Dad's name on 3rd May 2007.
In September 2007, the Indigo LS (Bought in 2004) was transferred to my name. Now the RC has my name as Second Owner. But the Insurance Papers still say that my Dad is the owner. i.e. I did not transfer the Insurance Policy to my name.
While renewing the Insurance policy of Indigo LS in 2005, the Ins Co. misprinted the Manufacture Year as 2000 instead of 2004.
Now I want to change the name on Insurance Papers from my Dad's to mine and the Manfr Year from 2000 to 2004.
My Queries--
1. If I change the name on Ins Papers to mine, would the NCB be carried forward (since I live with my parents but am the Second Owner)? If not, should I get the NCB Certificate in my Dad's Name, Cancel the Policy in his name and Take out Fresh Policy in my name? When I renewed the policy in my Dad's Name on 19th May 2009, the Premium came out to be Rs.4,300/-+ (Rs.4,381/- to be precise).
And use the NCB Certificate (in my Dad's name) to reduce the Premium on Indigo XL (bought in 2007) while renewing it next year?
Is it beneficial to cancel the Policy in Dad's name and take New Policy in my name since the Current Premium Amount is just Rs.4381/-.

2. If the Manufacture Year is changed from 2000 to 2004, would the Premium be increased (The manfr Year was misprinted as 2000 instead of 2004 on Ins.Papers)?
RC book one name and insurance policy other name - No claim is payable in this case.
NCB is not transferable to any family members also.
Insurance premium will decerese since it is changing from 2000 to 2004.

Please change the name in insurance as early as you can as currently something goes wrong to your car the claim is not payable at all.

Quote:
Originally Posted by MileCruncher View Post
I have two cars and one two wheelers in my name, whereas my wife has 1 car in her name. Is it possible to have a composite insurance in our case?
There is noting like a composite insurance, you have to take separate insurance policy for each and every vehicle you own.
rjvora_2000 is offline   Reply With Quote
Old 25th August 2009, 09:55   #233
Team-BHP Support
 
bblost's Avatar
 
Join Date: Jul 2007
Location: Hyderabad
Posts: 9,235
Thanked: 5,547 Times
Default

Quote:
Originally Posted by rjvora_2000 View Post
RC book one name and insurance policy other name - No claim is payable in this case.
I don't think so.

http://www.team-bhp.com/forum/indian...ml#post1312124 (Unable to claim insurance for car)
bblost is offline   Reply With Quote
Old 25th August 2009, 10:15   #234
Senior - BHPian
 
MileCruncher's Avatar
 
Join Date: Jan 2009
Location: Mumbai
Posts: 3,977
Thanked: 344 Times
Default

Quote:
Originally Posted by r_nairtvm View Post
For two cars and the two wheeler in your name you could ask for a Fleet Policy. But there is nothing beneficial about it. Only thing will be that all insurances expire at the same time and thus you can avoid multiple trips to insurers for renewal.

The Vehicle in your wife's name will have to have a separate insurance policy.

Best Regards & Drive safe

Ram

Quote:
Originally Posted by rjvora_2000 View Post


There is noting like a composite insurance, you have to take separate insurance policy for each and every vehicle you own.
Like in UK/europe you get composite insurance for a household ( husband wife), is anything like that available in India. Under these policies, the Premium is also lower as the transaction cost for Insurance companies is also lower.
MileCruncher is offline   Reply With Quote
Old 25th August 2009, 22:02   #235
Senior - BHPian
 
r_nairtvm's Avatar
 
Join Date: Feb 2009
Location: Dubai/TRV/BLR
Posts: 1,614
Thanked: 1,348 Times
Default

Quote:
Originally Posted by MileCruncher View Post
Like in UK/europe you get composite insurance for a household ( husband wife), is anything like that available in India. Under these policies, the Premium is also lower as the transaction cost for Insurance companies is also lower.
MC

In my earlier post what I was trying say was that Composite Motor Insurance for a family as you have mentioned is not yet available in India.

Thanks and Best Regards

Ram
r_nairtvm is offline   Reply With Quote
Old 26th August 2009, 09:08   #236
Senior - BHPian
 
rjvora_2000's Avatar
 
Join Date: Mar 2008
Location: Mumbai/Mulund
Posts: 1,655
Thanked: 37 Times
Default

Sirji you are saying that you got your claim without having your name in the insurance policy? - His happend in 1996.

I am still not sure how you got the claim?

The basic principal of insurance say's that a person should have a insurable interest (Eg. I can not take insurance of Mr. Amitabh Bachchan) while taking the policy. - which is not their in your case.
rjvora_2000 is offline   Reply With Quote
Old 29th August 2009, 19:39   #237
BHPian
 
IndigoXLGrandDi's Avatar
 
Join Date: Aug 2009
Location: Solapur (MH-13)
Posts: 867
Thanked: 130 Times
Default

Thanks r_nairtvm.
I would get NCB Certificate of Indigo LS in my Dad's name and use it while getting the Indigo XL's Policy renewal.

But how much of Discount in Premium will the NCB of LS fetch my Dad while Renewing the XL's Policy next May (May 2010)?

I will update the Current NCBs of both the Cars so that you could answer easily.
Quote:
Originally Posted by rjvora_2000 View Post
Insurance premium will decerese since it is changing from 2000 to 2004.
Correction Here. The Premium would Increase since the Car will be NEWER by 4 Years. That means- The car which was bought in Year 2000 will have Low Premium in comparison to the Car which was bought in Year 2004.
So if I change the Year from 2000 to 2004, I might be charged extra charges.
IndigoXLGrandDi is offline   Reply With Quote
Old 31st August 2009, 09:13   #238
Senior - BHPian
 
rjvora_2000's Avatar
 
Join Date: Mar 2008
Location: Mumbai/Mulund
Posts: 1,655
Thanked: 37 Times
Default

Quote:
Originally Posted by IndigoXLGrandDi View Post
Correction Here. The Premium would Increase since the Car will be NEWER by 4 Years. That means- The car which was bought in Year 2000 will have Low Premium in comparison to the Car which was bought in Year 2004.
So if I change the Year from 2000 to 2004, I might be charged extra charges.
Sorry buddy !!!

As age is increasing the basic rate of insurance changes like up till five year one rate then from six to ten year little more rate then previous rate and from ten year onwards the rate changes on higher side. that's why I said that.
rjvora_2000 is offline   Reply With Quote
Old 5th September 2009, 19:28   #239
BHPian
 
IndigoXLGrandDi's Avatar
 
Join Date: Aug 2009
Location: Solapur (MH-13)
Posts: 867
Thanked: 130 Times
Default

Quote:
Originally Posted by IndigoXLGrandDi View Post
But how much of Discount in Premium will the NCB of LS fetch my Dad while Renewing the XL's Policy next May (May 2010)?

I will update the Current NCBs of both the Cars so that you could answer easily.
The Policy of Indigo LS (May 2004) has 35% NCB.
The Policy of Indigo XL Grand DiCOR has NIL NCB since the Agent (New India Assurance) did not transfer the NCB while switching from Bajaj Allianz.

Could anyone tell me how to transfer the 35% NCB of LS to XL?

I will take NCB Certificate of 35% of LS. Then should I
1. cancel the policy in my father's name and take new policy in my name
2. or just transfer the policy in my name after obtaining the NCB Certificate?

How much of Discount in Premium would my Dad get while Renewing the XL's Policy since we would be submitting NCB Certificate of 35% while Renewing in May 2010? Would the Discount be in Percentage or amount i.e. would we get 35% Discount in Premium while Next Renewal in May 2010 or some other amount?
IndigoXLGrandDi is offline   Reply With Quote
Old 6th September 2009, 11:18   #240
Senior - BHPian
 
r_nairtvm's Avatar
 
Join Date: Feb 2009
Location: Dubai/TRV/BLR
Posts: 1,614
Thanked: 1,348 Times
Default

Quote:
Originally Posted by IndigoXLGrandDi View Post
The Policy of Indigo LS (May 2004) has 35% NCB.
The Policy of Indigo XL Grand DiCOR has NIL NCB since the Agent (New India Assurance) did not transfer the NCB while switching from Bajaj Allianz.

Could anyone tell me how to transfer the 35% NCB of LS to XL?

I will take NCB Certificate of 35% of LS. Then should I
1. cancel the policy in my father's name and take new policy in my name
2. or just transfer the policy in my name after obtaining the NCB Certificate?

How much of Discount in Premium would my Dad get while Renewing the XL's Policy since we would be submitting NCB Certificate of 35% while Renewing in May 2010? Would the Discount be in Percentage or amount i.e. would we get 35% Discount in Premium while Next Renewal in May 2010 or some other amount?
  1. If the LS is registered in your name then you should get an insurance in your name.
  2. A letter from your dad addressed to the insurance company (with copy of Ins Cert in your name and the Copy of RC in your name), requesting them to a) cancel the coverage of the current policy. b) Allow refund of premium if eligible. c) Issue Certificate of NCB and to keep it in abayence.
  3. When the XL Insurance is renewed your dad should get 35% of the Own Damage portion of the premium as NCB (Policy should be a Comprehensive one (OD+TP). NCB Reduction would be shown in the premium portion of the Policy
Trust this clarifies.

Take Care & drive Safe

Ram
r_nairtvm is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Insurance claim? Pay a little extra and retain your No-Claim Bonus! parrys Indian Car Loans & Insurance 9 1st May 2016 22:39
Insurance premiums vs claims - Would 'Self Insurance' be cheaper for you? GTO Indian Car Loans & Insurance 46 28th February 2016 15:38
Car Insurance - Possible NCB (No Claim Bonus) Loophole? koshyjohnuk Indian Car Loans & Insurance 57 7th January 2015 19:26
Insurance and No Claim Bonus vennarbank Indian Car Loans & Insurance 9 18th September 2006 12:51


All times are GMT +5.5. The time now is 07:35.

Copyright ©2000 - 2016, Team-BHP.com
Proudly powered by E2E Networks