ARTICLE: No Claim Bonus - How to save on your insurance premiums!

[meerkat]

I've never claimed insurance for my 12 year old bike. During renewal the
United India officer convinced me that there was no point for comprehensive
insurance since the deductible of Rs. 5k would be more than the value of the
bike! So I went for just third party insurance. Now I've realized that I had lost my max bracket NCB when I didn't renew my comprehensive insurance.
So if I go for a new bike now, I'll have no NCB benefit! Doesn't seem fair,
since the insurer has all the record that I never made a claim. I should just
consider myself fortunate that I haven't made the mistake with my car.

[rjvora_2000]

If you change from Comprehensive to TP insurance, you get letter of NCB from the insurer which you can utilize for three year's from the date of issue.

[IndigoXLGrandDi]

Originally Posted by r_nairtvm

[list=1][*]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.[*]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

But why would a letter from my Dad is needed?

How much of NCB will be carried forward on Indigo XL (Newer Car) if we transferred the 35% NCB from Indigo LS (Older Car)? Means how much NCB will be mentioned in the Indigo XL's Policy while renewing the policy next year?

[meerkat]

Originally Posted by rjvora_2000

If you change from Comprehensive to TP insurance, you get letter of NCB from the insurer which you can utilize for three year's from the date of issue.

Thanks. But does one need to request the NCB at the time of the change
itself? For me the change was actually made a year back now. I realized the
issue only much later. Could I still request the NCB now? Thanks again.

[r_nairtvm]

Originally Posted by meerkat

Thanks. But does one need to request the NCB at the time of the change
itself? For me the change was actually made a year back now. I realized the
issue only much later. Could I still request the NCB now? Thanks again.

Meerkat,

Normally you should make the request for an NCB certificate as you are cancelling the comp insurance.

But even now if you have the policy number etc you can make the application and get the NCB Cert ( as its valid for 3 years).

Mostly companies oblige. If they don't threaten you are going to complain to the Ombudsman or IRDA.

Best Regards

Ram

[r_nairtvm]

Originally Posted by IndigoXLGrandDi

But why would a letter from my Dad is needed?

How much of NCB will be carried forward on Indigo XL (Newer Car) if we transferred the 35% NCB from Indigo LS (Older Car)? Means how much NCB will be mentioned in the Indigo XL's Policy while renewing the policy next year?

1) The Current Comprehensive policy of the LS is in your Dad's name and hence his letter is required to cancel the policy and to get an NCB certificate in his name (NCB follows the Original insured)

2) 35% NCB will be mentioned in the XL Policy when its renewed if the NCB certificate is produced to the insurer at the time of renewal of insurance.

Thanks and Best Regards

Ram

[rjvora_2000]

Originally Posted by meerkat

Thanks. But does one need to request the NCB at the time of the change
itself? For me the change was actually made a year back now. I realized the
issue only much later. Could I still request the NCB now? Thanks again.

You can still give a try, since it is united India I am not sure of the work.

[kodava]

After going through this informative thread. I have a question for which the answer is still not clear. I'm hoping one of you can help.

I currently have a vehicle which has comprehensive insurance with 35% NCB. I am planning to buy another vehicle and wish to transfer the NCB to the new vehicle. Does this mean that I should not sign the transfer of insurance form when selling the old vehicle? Or can the insurance be transferred to the new owner without losing the 35% NCB?

Please advise how I should go about with the sale of the old vehicle.

Thanks
Kodava

[rjvora_2000]

Originally Posted by kodava

After going through this informative thread. I have a question for which the answer is still not clear. I'm hoping one of you can help.

I currently have a vehicle which has comprehensive insurance with 35% NCB. I am planning to buy another vehicle and wish to transfer the NCB to the new vehicle. Does this mean that I should not sign the transfer of insurance form when selling the old vehicle? Or can the insurance be transferred to the new owner without losing the 35% NCB?

Please advise how I should go about with the sale of the old vehicle.

Thanks
Kodava

This is easy.

1. You sell your current car without insurance. Submit the current insurance policy to current insurance company and tell them you have sold the car.
A. you will get the NCB letter.
B. you will get the refund of premium of the balance period.

2. If you sale your car with insurance submit the letter along with the sale proof to current insurance company.
A. you will get NCB letter.

That's it.

[kodava]

Thanks, Rupesh. Much appreciated.

[IndigoXLGrandDi]

The Indigo LS has been transferred from dad's name to mine in November 2007. At that time I did not know that I have to Separately apply for Insurance Policy name change. I thought the RTO will inform the Insurance office about the transfer and I dont have to inform to the latter about transfer. But later I came to know that I should the name. So the Insurance Policy remained in my dad's name till date and RC is in my name.
I know its illegal. Now I want to change the policy to my name.
So today I enquired at New India Assurance about the Transfer of Policy from Dad's name to mine.
The agent said that if only name has to be changed from my dad's to mine, the fee would Rs.56/- and if NCB also is to be transferred then I have to pay Rs.1816/- (I want to transfer this NCB from Indigo to Brand New Xylo.
The agent quoted me Rs.19K+ for Xylo Insurance without the NCB transfer and Rs.12K+ if that 35% NCB is transferred.
Detailed Information--
Indigo LS purchased in May 2004 in my dad's name (transferred RC to mine in Nov 2007 but Insurance is in my dad's name till date).
Now want to buy Xylo E8 in my dad's name. So want to transfer the NCB of Indigo LS (35%NCB) to Xylo. So that the Premium on Xylo would get reduced by 35%.

Please help me. The agent told me that if I pay additional Rs.1816/- I would be able to transfer the 35% NCB of Indigo LS to Xylo. And if I pay Rs.56/- NCB cannot be transferred to Xylo.
I did not ask the Mahindra Dealer the Insurance Premium on Xylo. Will get by this afternoon and update. Till then please answer the other queries.

[rjvora_2000]

Originally Posted by IndigoXLGrandDi

The Indigo LS has been transferred from dad's name to mine in November 2007. At that time I did not know that I have to Separately apply for Insurance Policy name change. I thought the RTO will inform the Insurance office about the transfer and I dont have to inform to the latter about transfer. But later I came to know that I should the name. So the Insurance Policy remained in my dad's name till date and RC is in my name.
I know its illegal. Now I want to change the policy to my name.
So today I enquired at New India Assurance about the Transfer of Policy from Dad's name to mine.
The agent said that if only name has to be changed from my dad's to mine, the fee would Rs.56/- and if NCB also is to be transferred then I have to pay Rs.1816/- (I want to transfer this NCB from Indigo to Brand New Xylo.
The agent quoted me Rs.19K+ for Xylo Insurance without the NCB transfer and Rs.12K+ if that 35% NCB is transferred.
Detailed Information--
Indigo LS purchased in May 2004 in my dad's name (transferred RC to mine in Nov 2007 but Insurance is in my dad's name till date).
Now want to buy Xylo E8 in my dad's name. So want to transfer the NCB of Indigo LS (35%NCB) to Xylo. So that the Premium on Xylo would get reduced by 35%.

Please help me. The agent told me that if I pay additional Rs.1816/- I would be able to transfer the 35% NCB of Indigo LS to Xylo. And if I pay Rs.56/- NCB cannot be transferred to Xylo.
I did not ask the Mahindra Dealer the Insurance Premium on Xylo. Will get by this afternoon and update. Till then please answer the other queries.

Get NCB transferred in your name and then transferred to your new policy. You will save 35% on your new policy and that will be a big amount then Rs. 1800/-

[IndigoXLGrandDi]

Thanks for answering, Rupesh.

When I asked the agent to give me NCB Certificate, he said "You have transferred the car way back in 2007 hence the NCB has nullified and we cannot give you NCB Certificate in your dad's name. Even if you transfer the car from your dad to you, your dad is not eligible for NCB Certificate since the car has not been sold but just transferred to a family member. And a clause states that if you want to avail NCB Certificate, you should sell the car to the third person not from your family".

After talking to him for 20-25 minutes, he asked me when are we going to buy the new car. I replied "By this month end". He said "In that case, you wont need NCB Certificate if you take the insurance from our company (New India Assurance)".

I am not having faith in him that whether he will give me NCB Benefit on New Car (Xylo) if I pay additional Rs.1816/- or he is just taking me for a ride to make money out of me.

When I asked the person on Compare & Buy Car Insurance, Health & Mediclaim Plans, Life Insurance Policies Online: Policybazaar, he too was doubtful that I can avail the benefit of NCB to reduce the Premium of Xylo. He told me that 99% New India Assurance wont offer me NCB Certificate since only the car was transferred to my name two years ago but not insurance.

The Exshowroom Price of Xylo E8 (with ABS) is Rs.7,96,060/-
The New India Assurance agent orally told me that I would have to pay Rs.19K/-+ for Xylo's Insurance.

I got a quote from Bajaj Allianz as below--
IDV considered is Ex-showroom Price (With No 5% Depreciation) -->Rs.7,96,060/-
Basic Premium- -->Rs. 26,612/-
Company Discount (Dealer Commission) -->Rs.(-)11,975/-
Sub total -->Rs. 14,636/-
8 Co-Passengers' Insurance Cover of Rs.2 Lakhs Each -->Rs. 800/-
Third Party Liability -->Rs. 2500/-
Owner Cover for Rs.2 Lakhs -->Rs. 100/- Paid Driver Cover for Rs.50,000/- -->Rs. 25/-
Net Premium -->Rs. 17,961/-
Service Tax -->Rs. 1,850/-
Final Premium -->Rs. 19,812/-

The Mahindra Dealer quoted me Rs.27K/-+ for the Insurance of Xylo E8 (with ABS).
I told him that I will get the Insurance done from outside (Directly from Insurance Co.)

So I am in confusion whether the New India Agent will give me NCB after paying Rs.1816/-.
I dont want to get cheated from him.
Rupesh please help me in this matter.
Also if you please PM me your mobile no. so that I can call you directly if I ever had a problem regarding Insurance.

Thanks once again.
Regards,
Sudeep.

[rock75]

This may have been discussed earlier but I am still not clear about the process. I have following queries:

1. If A sells a car to B with full comprehensive insurance when can B transfer it to his name and the complete process to do it? Is it after registering the car in his name?

2. NCB: If A sells the car to B and decide to retain NCB, does he have to cancel the insurance and take up a third party insurance before selling?

3. If he doesn't have to and he writes to insurer that he has sold the car to B and please issue him a NCB letter, in that case does B need to pay the deficit to insurer upon transfer of the policy in his name?

[rjvora_2000]

Originally Posted by rock75

This may have been discussed earlier but I am still not clear about the process. I have following queries:

1. If A sells a car to B with full comprehensive insurance when can B transfer it to his name and the complete process to do it? Is it after registering the car in his name?

2. NCB: If A sells the car to B and decide to retain NCB, does he have to cancel the insurance and take up a third party insurance before selling?

3. If he doesn't have to and he writes to insurer that he has sold the car to B and please issue him a NCB letter, in that case does B need to pay the deficit to insurer upon transfer of the policy in his name?

1. On the day buyer has bought the car he can and he should transfer the insurance in his name.
2. No. Insurance company will issue the letter to A without canceling the policy. They make the changes in there records after showing the proof of sale to insurance company.
3. NCB is the non-transferable property of the seller. Buyer has to pay the NCB amount to insurer for getting the policy shifted in his name.