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Old 12th August 2014, 16:20   #571
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Quote:
Originally Posted by Naetik30 View Post
Hi

Where you able to transfer NCB?

I am in a similar situation. I am exchanging my Hyundai i10 (50% NCB) with my Hyundai dealer for 2014 Hyundai verna. Potentially I can save about INR 10000 by transferring NCB. But TATA AIG is asking for Form 29/30 which I cannot get now (as I am exchanging with dealer). Dealer has already provided a delivery note/purchase receipt for my old car - but TATA AIG is not OK with that.

A quick response will be highly appreciated.

I have another query -

1. In case I pay the entire insurance amount for new car. Can I get a refund for NCB once dealer sells my old car? Has anyone done this?


Arvind
I was in your situation. I owned a Getz which I sold and then bought a Jetta. I had a 50% NCB on the Getz insurance from Royal Sundaram. At the time of purchasing the Jetta, I did not have the NCB, and hence had to pay 81K for the insurance. I had to follow up with the guy who bought the Getz from me to get the RC book transferred and after that applied for an NCB certificate with Royal Sundaram. After paying around 2K, and a few followups, a couple of weeks later they issued the NCB.

Then I submitted the NCB to Bajaj allianz, and after about 6 weeks of follow ups and providing various paper work they asked (NCB certificate, RC copy with change of ownership, cancelled cheque, covering letter, NEFT certificate), I have received a mail that I will be getting a refund of the NCB amount with a direct credit to my bank account. I will know how much the amount is going to be only when the bank credit happens.

The NCB amount should be around 30K. But already there has been a 4 month delay and hence I expect only around 20K (best case) to be refunded.

Last edited by graaja : 12th August 2014 at 16:23.
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Old 12th August 2014, 16:42   #572
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Red face Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Quote:
Originally Posted by Naetik30 View Post
But TATA AIG is asking for Form 29/30 which I cannot get now (as I am exchanging with dealer). Dealer has already provided a delivery note/purchase receipt for my old car - but TATA AIG is not OK with that.
1. In case I pay the entire insurance amount for new car. Can I get a refund for NCB once dealer sells my old car? Has anyone done this?
Arvind,

Tata AIG is correct in saying that atleast the form 29/30 which is submitted to RTO need to be furnished to apply for the NCB letter if not the RC copy. Since you are selling the car to the dealer, it all the more important to get the ownership transferred to save any embarrasment in the future. Delivery note is a part of documentation which needs to be submitted to the RTO along wioth the transfer forms. Keep in mind to transfer the Insurance papers also in parallel which is also a top priority.

If you plan to buy the Insurance by paying complete amount, then get it clarified from the Insurance co about the refund of the amount on submission of NCB letter. Some insurance co dont allow the refund, hence NCB would be applicable on renewal.
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Old 12th August 2014, 21:41   #573
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by ghodlur View Post
Arvind,

Tata AIG is correct in saying that atleast the form 29/30 which is submitted to RTO need to be furnished to apply for the NCB letter if not the RC copy. Since you are selling the car to the dealer, it all the more important to get the ownership transferred to save any embarrasment in the future. Delivery note is a part of documentation which needs to be submitted to the RTO along wioth the transfer forms. Keep in mind to transfer the Insurance papers also in parallel which is also a top priority.

If you plan to buy the Insurance by paying complete amount, then get it clarified from the Insurance co about the refund of the amount on submission of NCB letter. Some insurance co dont allow the refund, hence NCB would be applicable on renewal.

Thanks guys.

So I called up Tata AIG and Bajaj allianz and here is what I hear -
1. Tata AIG needs form 29/30 to be submitted. No other go. I will have to buy insurance without NCB this year. They will not refund the excess during the first year. But I can get the NCB discount from next year.
2. Bajaj Allianz needs form 29/30 to be submitted. But they are ready to refund the amount for current year, when I submit the NCB letter. But I guess it will be pro-rated. Catch is Bajaj's quote is way higher than Tata AIG's. And based on the process involved in getting the refund, I am not very sure.

So still confused about what to do. But need to buy the cover note soon.


Quote:
Originally Posted by graaja View Post
I was in your situation. I owned a Getz which I sold and then bought a Jetta. I had a 50% NCB on the Getz insurance from Royal Sundaram. At the time of purchasing the Jetta, I did not have the NCB, and hence had to pay 81K for the insurance. I had to follow up with the guy who bought the Getz from me to get the RC book transferred and after that applied for an NCB certificate with Royal Sundaram. After paying around 2K, and a few followups, a couple of weeks later they issued the NCB.

Then I submitted the NCB to Bajaj allianz, and after about 6 weeks of follow ups and providing various paper work they asked (NCB certificate, RC copy with change of ownership, cancelled cheque, covering letter, NEFT certificate), I have received a mail that I will be getting a refund of the NCB amount with a direct credit to my bank account. I will know how much the amount is going to be only when the bank credit happens.

The NCB amount should be around 30K. But already there has been a 4 month delay and hence I expect only around 20K (best case) to be refunded.
Hi graaja. Nice to know you are from CBE. I am a native of Coimbatore as well. From Vadavalli actually - but now in Bangalore. Where are you from?

And about your NCB - Why did you not hold on to the NCB letter and claim it for next year. You could have saved a lot more right?

Last edited by Naetik30 : 12th August 2014 at 21:44. Reason: Modified the message for quote
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Old 13th August 2014, 04:47   #574
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Quote:
Originally Posted by Naetik30 View Post
Hi graaja. Nice to know you are from CBE. I am a native of Coimbatore as well. From Vadavalli actually - but now in Bangalore. Where are you from?

And about your NCB - Why did you not hold on to the NCB letter and claim it for next year. You could have saved a lot more right?
Hi Naetik30, I too live in Vadavalli Coimbatore. We can catch up sometime when you visit Coimbatore.

I believe once the NCB is applied to the policy, unless there is a claim, this will carry over to the next year as well (Hi ghodlur, please correct me if I am wrong). So, the next year premium will be still based on the NCB. As ghodlur has mentioned some insurance companies do not consider refunding the NCB amount for an already existing policy, I consider whatever amount I get as a refund to be a bonus
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Old 13th August 2014, 08:13   #575
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Smile Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Quote:
Originally Posted by Naetik30 View Post
So still confused about what to do. But need to buy the cover note soon.
To start with initiate the car ownership transfer process with Insurance ownership transfer parallely. Submit the receipt from RTO to Tata AIG and NCB letter as well to start the Insurance buying process for the new car. Better take the Insurane online, this way you will have the Insurance policy in hand in minutes (original takes some time to desptached to your address). BTW who was the Insurer to your old car from whom you are planning to get the NCB letter? Also are you fixated with Tata AIG & BA, there are lot many players in the market. Have you checked the quotes from them (online preferably)?

Quote:
Originally Posted by graaja View Post
I believe once the NCB is applied to the policy, unless there is a claim, this will carry over to the next year as well (Hi ghodlur, please correct me if I am wrong)
Thats correct. IMO the NCB garnered (over the years of ownership) has to be used during the new car Insurance buying rather than opt for the refund route where you are at the mercy of the Insurer for the amount and the time for refund. Also 50% NCB discount applicable on the first year Insurance will be higher than the 2nd year Insurance (due to lower IDV).
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Old 13th August 2014, 13:30   #576
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

As per the IRDA regulations, NCB has to be refunded, if not availed immediately on purchase of new car. This can be done only with the same insured person, so it is done on transfer of the car. If valid proof of transfer, i.e. Form 29/30 or RC book is submitted, then new insurance company has to refund the NCB. The old company provides the NCB certificate - this will be done only once the new owner applies for the insurance transfer for the old car, or the policy expires and you give them transfer details - and this NCB certificate with all the documents has to be submitted within 3 years to the new car insurance company.

Obviously it is beneficial to use it for the first year when premium is maximum. In some cases of very heavy discounting for a new car, it may be better to use it in the second year when on renewal they may not give as high discount. But even when insurance is given at Re 1/- by the dealer, the actual policy will carry the actual premium and one can get NCB refund on that on application.

In any case nowadays with the quasi-freeing of rates and competitive pricing, NCB importance is reducing. e.g. If a company is willing to give 40% discount, if you confront them with NCB of 20%, they mostly reduce the discount to 20% so that final premium is almost same.

But the companies are very particular (and rightly so to prevent misuse) about the documentation for the NCB, they will keep dragging their feet if it is not proper.
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Old 13th August 2014, 13:39   #577
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by sandeep108 View Post
As per the IRDA regulations, NCB has to be refunded, if not availed immediately on purchase of new car. This can be done only with the same insured person, so it is done on transfer of the car. If valid proof of transfer, i.e. Form 29/30 or RC book is submitted, then new insurance company has to refund the NCB.
Do you have some web url or some place I refer about this rule. Tata AIG is not ready to refund the amount and a reference would help to make it clear to them that they have to refund it.
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Old 13th August 2014, 14:15   #578
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

As per motor tariff rules:

GR.27. No Claim Bonus

(a) No Claim Bonus(NCB) can be earned only 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 which cover only Fire and / or
Theft Risks. For policies covering Liability with Fire and/or Theft Risks, the NCB
will be applicable only on the Fire and / or Theft components of the premium. An
insured becomes entitled to NCB only at the renewal of a policy after the expiry of
the full duration of 12 months.

(b) No Claim Bonus, wherever applicable, will be as per the following table.

ALL TYPES OF VEHICLES % OF
PREMIUM
No claim made or pending during the preceding full year of
insurance
20%

No claim made or pending during the preceding 2 consecutive
years of insurance
No claim made or pending during the preceding 3 consecutive
years of insurance
No claim made or pending during the preceding 4 consecutive
years of insurance
No claim made or pending during the preceding 5 consecutive
years of insurance

11
DISCOUNT ON
OWN DAMAGE
25%

35%
45%
50%





Sunset Clause: If at the renewal falling due any time between 1
July 2002 and
30
th
June 2003, both days inclusive, (after completion of the full policy period of
12 months) an insured becomes entitled to an NCB of 55% or 65% in terms of the
Tariff prevailing prior to 1
st
July 2002, the entitlement of such higher percentage
of NCB will remain protected for all subsequent renewals till a claim arises under
the policy, in which case the NCB will revert to „Nil‟ at the next renewal.
Thereafter, NCB if any earned, will be in terms of the above table.
(c) The percentage of applicable NCB is to be computed on the Own Damage premium
required for renewal of the insurance after deducting any rebate in respect of "Vehicle
Laid Up" under the policy. If the policy period has been extended in lieu of the rebate
for the lay up of the vehicle, as per „Vehicle Laid Up‟ Regulation, such extended
period shall be deemed to have been part of the preceding year of insurance.

(d) 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.

It is however, clarified that the entitlement of No Claim Bonus will be applicable
for the substituted vehicle subject to the provision that the substituted vehicle on
which the entitled NCB is to be applied is of the same class (as per this tariff) as
the vehicle on which the NCB has been earned.

Provided that where the insured is an individual, and on his/ her death the custody and
use of the vehicle pass to his/her spouse and/or children and/or parents, the NCB
entitlement of the original insured will pass on to such person/s to whom the custody
and use of the vehicle pass.

(e) The percentage of NCB earned on a vehicle owned by an institution during the period
when it was allotted to and exclusively operated by an employee should be passed on
to the employee if the ownership of the vehicle is transferred in the name of the
employee. This will however require submission of a suitable letter from the employer
confirming that prior to transfer of ownership of the vehicle to the employee, it was
allotted to and exclusively operated by the employee during the period in which the
NCB was earned.

(f) In the event of the insured, transferring his insurance from one insurer to another
insurer, the transferee insurer may allow the same rate of NCB which the insured
would have received from the previous insurer. Evidence of the insured's NCB
entitlement either in the form of a renewal notice or a letter confirming the NCB
entitlement from the previous insurer will be required for this purpose.

12
st
Where the insured is unable to produce such evidence of NCB entitlement from the
previous insurer, the claimed NCB may be permitted after obtaining from the insured a
declaration as per the following wording:

“I / We declare that the rate of NCB claimed by me/us is correct and that no claim
as arisen in the expiring policy period (copy of the policy enclosed). I/We further
undertake that if this declaration is found to be incorrect, all benefits under the
policy in respect of Section I of the Policy will stand forfeited.”

Notwithstanding the above declaration, the insurer allowing the NCB will be obliged
to write to the policy issuing office of the previous insurer by recorded delivery calling
for confirmation of the entitlement and rate of NCB for the particular insured and the
previous insurer shall be obliged to provide the information sought within 30 days of
receipt of the letter of enquiry failing which the matter will be treated as a breach of
Tariff on the part of the previous insurer. Failure of the insurer granting the NCB to
write to the previous insurer within 21 days after granting the cover will also
constitute a breach of the Tariff.

(g) If an insured vehicle is sold and not replaced immediately, or laid up, and the policy is
not renewed immediately after expiry, NCB, if any, may be granted on a
subsequent insurance, provided such fresh insurance is effected within 3 (three)
years from the expiry of the previous insurance. The rate of NCB applicable to the
fresh policy shall be that earned at the expiry of the last 12 months period of
insurance.

(h) On production of evidence of having earned NCB abroad, an insured may be granted
NCB on a new policy taken out in India as per entitlement earned abroad, provided
the policy is taken out in India within three years of expiry of the overseas insurance
policy, subject to relevant provisions of NCB under these rules.

(i) Except as provided in Rule (g), no NCB can be allowed when a policy is not renewed
within 90 days of its expiry.

(j) Except as provided in Rules (g), (h) and (i) above, NCB is to be allowed only when
the vehicle has been insured continuously for a period of 12 months without any
break.
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Old 13th August 2014, 14:18   #579
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

I am not too sure whether there are any further circulars or clarifications to the above.

But I have always got refund of NCB against my new car policy when submitting complete transfer papers/old RC book duly transferred in new owner name from any insurance company. I am surprised TATA AIG is refusing refund.
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Old 15th August 2014, 16:06   #580
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Quote:
Originally Posted by graaja View Post
Hi Naetik30, I too live in Vadavalli Coimbatore. We can catch up sometime when you visit Coimbatore.

I believe once the NCB is applied to the policy, unless there is a claim, this will carry over to the next year as well (Hi ghodlur, please correct me if I am wrong). So, the next year premium will be still based on the NCB. As ghodlur has mentioned some insurance companies do not consider refunding the NCB amount for an already existing policy, I consider whatever amount I get as a refund to be a bonus
Hi

I have got a confirmation from Tata Aig that even if I have a claim on new policy in first year and I produce a ncb letter during renewal from old policy, I will still get NCB discount. So I have decided to buy policy without ncb for this. Then claim discount next year during renewal.

Arvind

Arvind
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Old 16th August 2014, 06:25   #581
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Quote:
Originally Posted by Naetik30 View Post

Hi

I have got a confirmation from Tata Aig that even if I have a claim on new policy in first year and I produce a ncb letter during renewal from old policy, I will still get NCB discount. So I have decided to buy policy without ncb for this. Then claim discount next year during renewal.

Arvind

Arvind
Getting a discount on the renewal premium has to happen by default. What about refund of NCB amount on the first year premium? What does Tata AIG say about that?

Last edited by graaja : 16th August 2014 at 06:26.
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Old 2nd September 2014, 13:06   #582
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Hi All,

A quick question on the NCB, is it possible to transfer my bike's NCB while buying a new car with/without selling the bike?

Thanks in Advance!!
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Old 2nd September 2014, 13:35   #583
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by fusionbang View Post
Hi All,

A quick question on the NCB, is it possible to transfer my bike's NCB while buying a new car with/without selling the bike?

Thanks in Advance!!
Nope - NCB is transferrable only for same type of vehicles: Two Wheeler to Two Wheeler, Car to Car etc

Best Regards & Drive Safe

Ram
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Old 2nd September 2014, 13:54   #584
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Red face Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Quote:
Originally Posted by r_nairtvm View Post
NCB is transferrable only for same type of vehicles: Car to Car etc
I have been even told that the NCB transfer is also within the same class of cars too i.e for the same engine capacity range. Although there is no document to substantiate this but a few Insurance co practice this. For eg if you graduating from <1000 cc to > 1000 cc engine, then its applicable till 1.5 ltr. Beyond that if you are buying a car the previous NCB wont be applicable.
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Old 2nd September 2014, 13:58   #585
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Question to the gurus here:

I sold a vehicle used by me on company lease, I had changed the ownership of the vehicle to my name after the lease was over however I had not changed the name from company’s name to my name in my insurance policy.
When I bought a new vehicle before selling by old vehicle,I was told that the NCB would be paid as a refund.After the sale I sent them the sale documents as well as a letter from the company I worked for, saying that the NCB can be transferred to my name. Contrary to what they had promised earlier the insurance company has now gotten back to me saying they cannot process NCB as the older car's insurance policy is not in my name?
Is this a valid case for denial?

I was reading from the motor vehicles rules pasted couple of post above by sandeep108

"The percentage of NCB earned on a vehicle owned by an institution during the period
when it was allotted to and exclusively operated by an employee should be passed on
to the employee if the ownership of the vehicle is transferred in the name of the
employee. This will however require submission of a suitable letter from the employer
confirming that prior to transfer of ownership of the vehicle to the employee, it was
allotted to and exclusively operated by the employee during the period in which the
NCB was earned.
"
Shouldn't the insurance company be refunding the NCB amount going by this?
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