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Old 17th May 2016, 12:44   #796
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Smile Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by r_nairtvm View Post
The NCB Certificate has a 2 year validity as well and can be used for any other vehicle of similar class which you may acquire latter.
A small correction Ram. The validity is for 3 years.

Another imp thing to be noted is that the NCB application needs to be made within 90 days of the car sale. If not done, Insurers are not at liability to provide the same (although they do in most occasion but that's the rule)
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Old 17th May 2016, 17:17   #797
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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
Hemant,

Instead what you could do is write an application to the X asking them to endorse your NCB status which they will do on the application form itself.

However what you need to do is change the Insurance for the old car from comprehensive to TPL only.

In the meanwhile:
Get a quote from Insurance X online for the new car insurance with NCB applied. Take it to Insurance Y and negotiate (if less than what dealer has quoted).
Thanks ghodlur, I have already got a quote from X for new car and its significantly lower than what dealer is quoting!

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Originally Posted by r_nairtvm View Post
With PSU Insurers;

You can always cancel your comprehensive and get an NCB Certificate as at beginning of the cancelled policy period, along with taking a Third Party Insurance for the old car, for a year from the date of cancellation of comprehensive. You can then keep the old car under a Third Party Insurance.

They (PSU) have even the option where you can pay back the NCB on the exiting policy - and continue the Comprehensive Cover for the Old car (without NCB and with premium on depreciated IDV at inception of cover) and then use the NCB on the new car.

I think the rules are same for all Insurers, but the private ones try all possible ways to avoid this, and maximize premium.

Ram
So if I understood the instructions you both gave, I have two options:

1) ask X to continue comprehensive policy on old car and take the NCB discount back from me?

2) ask X to change my policy from comprehensive to third-party-only? and this amended policy I pay with 0 NCB, so that I get NCB certificate?

When I ask for any of these changes to existing policy, X should give me an NCB certificate? Or just an endorsement (a stamp?) on a letter where I will mention that I am no longer using the NCB on old car's policy?

Would option 1 be better, as it maintains the comprehensive cover on my old car also? Or are you guys saying that for such an old car, I need not have own-damage cover?

Thanks again for your quick replies guys!
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Old 17th May 2016, 21:36   #798
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Smile Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by Hvt77 View Post
1) ask X to continue comprehensive policy on old car and take the NCB discount back from me?

2) ask X to change my policy from comprehensive to third-party-only? and this amended policy I pay with 0 NCB, so that I get NCB certificate?

When I ask for any of these changes to existing policy, X should give me an NCB certificate? Or just an endorsement (a stamp?) on a letter where I will mention that I am no longer using the NCB on old car's policy?
IMHO, option 2 is best suited for you. Since NCB is applicable on the own damage which is part of comprehensive policy, it is better to opt for Third party liability only policy so that you can use the NCB for the new car insurance. As Ram said you may be asked to pay back to Insurance co the NCB give to you for the policy year but on prorata basis. Fo eg if you have completed half of the policy year, you will be reqd to pay back 50% of the NCB amount you claimed during renewal. If you can negotiate well with Insurance X and you intend to buy the new car insurance from them, you can even get to keep the NCB amount without any deductions.

Again to get the NCB applicable, better to get it endorsed on the application form. So that even if you dont get the new car insurance from X but from Y, you will be asked to provide the NCB applicability proof.
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Old 17th May 2016, 22:48   #799
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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
IMHO, option 2 is best suited for you. Since NCB is applicable on the own damage which is part of comprehensive policy, it is better to opt for Third party liability only policy so that you can use the NCB for the new car insurance.

Again to get the NCB applicable, better to get it endorsed on the application form. So that even if you dont get the new car insurance from X but from Y, you will be asked to provide the NCB applicability proof.
Aah, now I got it, confirmed by checking my insurance cover note also, NCB is applicable only on own-damage! Silly of me to have missed it all this while, I thought it would be 50% on entire sum!

Anyways, my insurance starts in Sep, so even if I have to return NCB, on this 12 yr old santro, it would be something like 1/4th of Rs 1745, not a big deal.

What I would now like to know is the process I have to follow, am still a bit confused on that front, hope you can clarify please.

As I said, the honda dealer is unwilling to budge on giving insurance from anyone other than honda assure (Y), obviously some commission etc on that for him.

So if we assume that I do not have the option of continuing with X on new car, then my first step should be to take third-party cover from some other insurer? And then show that insurance as reason to cancel current insurance on santro from X and ask him for NCB certificate?

Or first step is to write a letter to X to change current santro policy to TPL-only, refund 1/4th of Rs 1745 and get him to endorse my application letter with the fact that I have returned NCB? And this endorsement would enable me to get 50% off on own-damage from honda assure on new car?

Thanks a bunch once more!!
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Old 18th May 2016, 08:23   #800
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Smile Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by Hvt77 View Post
As I said, the honda dealer is unwilling to budge on giving insurance from anyone other than honda assure (Y), obviously some commission etc on that for him.

So if we assume that I do not have the option of continuing with X on new car, then my first step should be to take third-party cover from some other insurer? And then show that insurance as reason to cancel current insurance on santro from X and ask him for NCB certificate?

Or first step is to write a letter to X to change current santro policy to TPL-only, refund 1/4th of Rs 1745 and get him to endorse my application letter with the fact that I have returned NCB? And this endorsement would enable me to get 50% off on own-damage from honda assure on new car?
Honda cannot force you to take Insurance from them. Period. If the dealer is doing so, write a strong worded letter to Honda regarding the same. Tough talking with the dealer about booking cancellation could also be needed if required. Honda Assure is just a cover, they also buy from some Insurance co. If you could find that out, get a online quote from that Insurance co and prove online quote is less than dealer quote, I think nobody should question you.

Your first step would be to approach Insurance X with an application for cancellation of comprehensive policy, buying of TPL policy and NCB applicability status request - all in one. Insurance X will confirm if you need to pay back any NCb amount, pay that and get the NCB status. Once you get the NCB endorsement, submit the same to Honda Assure for new car insurance. Parallely the conversion of comprehensive insurance to TPL only for the santro can happen.
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Old 18th May 2016, 20:48   #801
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Post Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by ghodlur View Post
Honda cannot force you to take Insurance from them. Period. If the dealer is doing so, write a strong worded letter to Honda regarding the same. Tough talking with the dealer about booking cancellation could also be needed if required.

Honda Assure is just a cover, they also buy from some Insurance co. If you could find that out, get a online quote from that Insurance co and prove online quote is less than dealer quote, I think nobody should question you.

Your first step would be to approach Insurance X with an application for cancellation of comprehensive policy, buying of TPL policy and NCB applicability status request - all in one. Insurance X will confirm if you need to pay back any NCb amount, pay that and get the NCB status. Once you get the NCB endorsement, submit the same to Honda Assure for new car insurance. Parallely the conversion of comprehensive insurance to TPL only for the santro can happen.
Thanks again ghodlur for your advice.

On contacting X, this is what they replied:
We would like to inform you that you can cancel the basic own damage section of the current existing policy and you can have the no claim bonus confirmation letter which will be valid for 90 days. Further the third party will be continued till the expire date of the policy.

Further there is no option to transfer the no claim bonus discount on the new car's based on the no claim bonus confirmation which is been provided to you.
-----Original Message-----
From: Hemant

I was told that another way I can get the ncb is to cancel this current policy, and take new policy, either from you or some other insurer, with 0 NCB on my santro.

Then, you can give me the NCB certificate, which I can transfer to my new car's insurance.

Is that a valid option / scenario?
The first part is ok, but then did not understand the 2nd part where he says NCB confirmation cannot be basis for transferring NCB to new car's policy? Then what is the whole purpose of issuing a NCB confirmation, provided with a 90 day validity?

Is he just bluffing me? Or did I ask the question incorrectly / have misunderstand your suggestion / his response?

PS: On related note wrt your suggestion of honda assure being just a front, another honda dealer, whom I am talking to, confirmed that honda assure is indeed a front for 6 insurance cos, iffco tokyo, icici lombard etc (unfortunately not for HDFC Ergo, which is my X), and that I can show them the quote from any of those 6 from their websites, and honda assure will try and match, and if I want, I can go with my own choice too! Need to do some real serious tough talking with my current dealership now! Thanks again for this part of the advice too!

Last edited by Hvt77 : 18th May 2016 at 20:54.
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Old 19th May 2016, 06:51   #802
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While I knew about getting NCB, thanks to this thread, I was able to doggedly follow-up and insist on getting an NCB certificate for my SX4 which was sold in 2014. This I used to reduce the insurance amount further for my XUV. The dealer quote was 67000, which on bargaining came down to 37000. This further reduced to 21500 after applying NCB. This is for a nil depreciation cover for 16.15 lakhs.
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Old 19th May 2016, 08:07   #803
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Smile Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by Hvt77 View Post
Is he just bluffing me? Or did I ask the question incorrectly / have misunderstand your suggestion / his response?
Dont read too much into this, just go ahead and buy the Insurance for the new car and utilize the NCB. If Insurance Y has any issues, ask them to talk to X.
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Old 27th May 2016, 17:24   #804
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by anshumandun View Post
Had I kept the old policy of the car (by paying 1k to the insurance company) instead of cancelling it for getting NCB certificate, Toyota would have paid me 5k more for the car.
This is perfect. Just what I was looking for.
Just to ensure that I have understood this correctly:
  • I pay 1k to the insurance company and get an NCB
  • I sell my old car (Car A) to dealer AND transfer the insurance as well with it
  • I then buy a new car (Car B) and use the NCB to get the Car B insured
  • The person who buys the old car (Car A) from the dealer also gets the insurance till its expiry, but at renewal time will pay the full insurance cost without any NCB

Is this understanding correct?
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Old 30th May 2016, 09:40   #805
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Is this understanding correct?
Yes, this is absolutely correct. Just one point: I had to pay 1k to get the NCB. For you, the amount might be different depending on your last insurance premium and months left for expiry.
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Old 30th May 2016, 11:21   #806
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Smile Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by ptushar View Post
[*]I pay 1k to the insurance company and get an NCB
Just a small point to note here. If the Insurance policy is being transferred mid year, the NCB applicable will be of last year and not what you will be eligible at the end of the policy year. For eg: when you renewed the policy, you were given 30% NCB and you transferred policy mid year. You will be required to pay the NCB amount equivalent to 30% on pro rata basis and you will be eligible for 30% NCB. You cannot claim 35% NCB even if you did not have any claims till mid year.
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Old 31st May 2016, 12:38   #807
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Guys, have a quick query. Have a 11 year old petrol swift, whose insurance will expire on 14th June. Gave the renewal cheque today (before the prices go up next month). The renewal amount is Rs. 4000. The insurance policy is in my name, as the car is in my name. Planning to trade the swift for a Wagon R. Dealer says that even if the Wagon R is delivered before 14th, I still have to renew the swift's insurance, as they need a valid insurance for atleast 3 months (from the time they take the vehicle from you).

The Wagon R's insurance (with zero depreciation) is being quoted at around Rs 21,000. I am negotiating with the dealer and trying to bring this down to 15k- 16K (basis some quote from policy bazaar). I am also trying to see if I can use the NCB of my Swift's insurance against the Wagon R. The Wagon R will be in my wife's name.

The dealer from who I am purchasing the car says that it is possible to use the NCB, if my wife can show the marriage certificate. Another dealer says that it is not possible.

I had purchased an XUV this March, paying an insurance amount of Rs. 40,000. the XUV is in my name. If the swift's NCB cannot be used for the Wagon R, can it be used for XUV in any way? Like next year when I renew the insurance?

TIA

Edit: Just read #799 that NCB is only for Own damage section. If this is indeed true, is it worth going through all the fuss for the Wagon R.

Last edited by ajayclicks : 31st May 2016 at 12:43. Reason: edit note added
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Old 31st May 2016, 13:40   #808
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Smile Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by ajayclicks View Post
The dealer from who I am purchasing the car says that it is possible to use the NCB, if my wife can show the marriage certificate. Another dealer says that it is not possible.

I had purchased an XUV this March, paying an insurance amount of Rs. 40,000. the XUV is in my name. If the swift's NCB cannot be used for the Wagon R, can it be used for XUV in any way? Like next year when I renew the insurance?
Let me start first with the fact that the NCB remains with the owner and cannot be used on car where the owner is different. If the dealer is saying that the NCB can be used on the car insurance which will be in your wife's name, then he is misleading you.

Here are the two options I can suggest:

1) If you have intended to sell the swift and buy Wagon R, better buy it in your name. Since your swift renewal is due, I would suggest tell the agent to buy Third party liability policy only (if you want comprehensive, you can still opt for it, however you may not get the advantage of using NCB to reduce the premium). Apply to the Insurance co for the NCB certificate (same set of documents which will be submitted to RTO for ownership transfer can be given to Insurance co too). Use the NCB certificate for buying the Insurance on Wagon R. Remember you can use the NCB only if the Wagon R is bought in your name.

2) If you still want to buy the Wagon R in your wife's name, get the Third party liability only policy for the swift, apply for NCB certificate. Use the NCB certificate during the renewal of XUV's insurance.

In either of the two options, please ensure that you also initiate the insurance transfer ownership parallely with the ownership transfer. If you are selling it to a dealer, then get a clear writing from them about the ownership and insurance transfer and mail the same to the RTO (where the swift is registered) about the change of ownership (with return acknowledgment). This will absolve your liability towards the car.

Last edited by ghodlur : 31st May 2016 at 13:43.
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Old 31st May 2016, 13:58   #809
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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
Here are the two options I can suggest:
Thanks Ghodlur. The dealer came and took the money for insurance renewal. Paid cash as rates increase from tomorrow. Also not sure, if switching the insurance from comprehensive to third party will lower the resale value of the swift. When the time comes to trade in the swift with the wagon R, I will see if I can use the NCB for XUV's renewal.

Cheers
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Old 11th July 2016, 12:09   #810
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

My car's policy was renewed 4 months back with 35% NCB benifit. So if I am to sell my car now, in between 2 renewals, will I be able to transfer the NCB to a new car? If so how will the NCB be calculated?

Another car is in my dad's name who has passed away last year and I am yet to transfer it to my name. After transferring registration, will I able to transfer NCB too to my name?

Last edited by thoma : 11th July 2016 at 12:14.
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