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

[joslicx]

Zara Hatke question but can any informed people tell how much of IDV one gets back in case of insurance claims? Suppose I have a vehicle with IDV of 1 lakh and it gets stolen. If I make an insurance claim, how much money will I get from my insurer?

[GTO - Touring]

Originally Posted by greenhorn

for some odd reason for the past two years, I've always ended up making claims > the insurance amount + NCB, So far , I've only gained money from insurance

We've heard of unhappy customers. Buttttttttttttt there's an unhappy service provider if we ever saw one

Originally Posted by Maverick1977

However the Insurance Company said that there would be no problems in transferring the NCB from my Mom's name to my Wifey's name, since the new car is booked in her name.

Logically and AFAIK, NCB is not transferable from person to person. Who told you that it is? The insurance company OR the agent?

Remember that the only time they will bring up this issue is at the time of a claim.

[Technocrat]

Originally Posted by GTO-Touring

Remember that the only time they will bring up this issue is at the time of a claim.

Wouldn't this get reflected in the premium amount figure as well?

[ghostrider]

Guys... some help

Originally Posted by ghostrider

Hey guys. Brilliant thread.

Quick question... my Ikon 1.6 is due for renewal in about 3 days. It's going to complete 3 years and start its 4th year. i have never made an insurance claim for this car.

How much NCB can I claim? I read on this thread that the NCB for the fourth year is 45%. Does this mean that if the Premium is say, Rs. 8000, then I can get a 45% discount on the premium and wind up paying only Rs. 5,400?

Also, how is the Premium calculated on the IDV? Is there a formula that determines premium based on IDV (Insured Declared Value)?

[ak-47]

Originally Posted by ghostrider

Hey guys. Brilliant thread.

Quick question... my Ikon 1.6 is due for renewal in about 3 days. It's going to complete 3 years and start its 4th year. i have never made an insurance claim for this car.

How much NCB can I claim? I read on this thread that the NCB for the fourth year is 45%. Does this mean that if the Premium is say, Rs. 8000, then I can get a 45% discount on the premium and wind up paying only Rs. 5,400?

Also, how is the Premium calculated on the IDV? Is there a formula that determines premium based on IDV (Insured Declared Value)?

If there are no claims, you should get 20% NCB after the completion of the 1st year, 25% after 2nd, and so on – up to 65% NCB. Not very sure of the current NCB slabs, but you could get up to a maximum of 65% NCB.

However, for you to claim your NCB now, your current policy should have already had a 25% NCB. I am not sure whether the insurance company with which you are renewing your policy now, would award you NCB, if your current policy doesn't show any NCB.

I have claimed 65% NCB on my earlier vehicle and got it transferred when I got my new truck (Dicor 2.2) in Oct 2007. I ended up paying less than half of the ‘regular’ premium for the new truck.

Motor Insurance policy has two parts (check your policy). Own Damage and Liability. The NCB is given on the 'Own Damage' part.

IRDA has now de-tariffed motor insurance premiums – so you could get competitive prices from different insurance companies. Yes, the premium depends on the IDV, but companies dole out discounts on the 'Own Damage'. The ‘Liability’ price is pretty much the same for all companies as stipulated by IRDA.

Hope it helps.

[rjvora_2000]

Originally Posted by ak-47

If there are no claims, you should get 20% NCB after the completion of the 1st year, 25% after 2nd, and so on – up to 65% NCB. Not very sure of the current NCB slabs, but you could get up to a maximum of 65% NCB.

However, for you to claim your NCB now, your current policy should have already had a 25% NCB. I am not sure whether the insurance company with which you are renewing your policy now, would award you NCB, if your current policy doesn't show any NCB.

I have claimed 65% NCB on my earlier vehicle and got it transferred when I got my new truck (Dicor 2.2) in Oct 2007. I ended up paying less than half of the ‘regular’ premium for the new truck.

Motor Insurance policy has two parts (check your policy). Own Damage and Liability. The NCB is given on the 'Own Damage' part.

IRDA has now de-tariffed motor insurance premiums – so you could get competitive prices from different insurance companies. Yes, the premium depends on the IDV, but companies dole out discounts on the 'Own Damage'. The ‘Liability’ price is pretty much the same for all companies as stipulated by IRDA.

Hope it helps.

I would like to correct you hear that now no company gives more then 50% NCB to new cars. (if you have old car which has 65% then they will continue with that but if you don't have any NCB now then maximum you can go till 50% only.

Originally Posted by ghostrider

Hey guys. Brilliant thread.

Quick question... my Ikon 1.6 is due for renewal in about 3 days. It's going to complete 3 years and start its 4th year. i have never made an insurance claim for this car.

How much NCB can I claim? I read on this thread that the NCB for the fourth year is 45%. Does this mean that if the Premium is say, Rs. 8000, then I can get a 45% discount on the premium and wind up paying only Rs. 5,400?

Also, how is the Premium calculated on the IDV? Is there a formula that determines premium based on IDV (Insured Declared Value)?

There is certen % (Which is given by TAC - IRDA) on your vehical's age (and registration area) value which the premium is calculated, (they add your Cng or Lpg and also electronic asseries here) then the NCB is deducted, then they deduct NTD (Non-Tariff Discount) the amount which has come is called OD (own damage) premium then they add TP premium, then LL to driver is added in TP, and PA to driver is added in that premium, then if you have taken Lpg or Cng then that premium is also added in that, and finally there is one more optional premium which is PA to passanger is also added if you want the coverage. Then they total TP and OD premium and Service tax is added in that premium that is the final premium.

Originally Posted by GTO - Touring

We've heard of unhappy customers. Buttttttttttttt there's an unhappy service provider if we ever saw one



Logically and AFAIK, NCB is not transferable from person to person. Who told you that it is? The insurance company OR the agent?

Remember that the only time they will bring up this issue is at the time of a claim.

The NCB is non-transferable it is given to the driver and not to the car of family in your case.

Originally Posted by Peter

Hi Team,

Sorry to barge into this thread but have a quick question ..maybe you guys could help me with in relation to Car insurance.

My Car insurance has expired this month and it was Comprehensive insurance.

Now since I wont be using the car for the next 1 year as I will be out of country I was thinking of doing the Third party insurance as the premium would be much lesser , cause I feel comprehensive insurance for the next 1 year would be unnecessary for me.

When I spoke to a Bajaj Allainz rep about this he said that thrid party insurance cannot be done as my car is Hypotheticated to HDFC bank. Is it true ? or is the guy just trying to just goof things up and force me into getting a Comprehensive insurance again?

Team Please advice.....

Cheers,

Peter.

Private insurance company can say no but remember only Third Party insurance is compulsory for Driving the car on road not the comprehensive insurance. Insurance company gets more money by way of comprehensive insurance policy that's the reason why they will not issue Third party policy. Ask them to give you in writing the same thing they will not give you the same.

Note from the Team-BHP Support Staff : Please use the "edit" button if posting within 15 minutes of the first post, instead of creating another back-to-back post

Please use "Multi Quote" option for quoting Multiple posts.

[ghostrider]

Ak47, Rjvora,

Thanks for the info, guys.

[autoenthusiast]

I got my NCB certificate from my Insurance company. They were so prompt in issuing my NCB certificate that I was really taken by surprise the way services have improved in this sector.

I sold my car to the Hyundai dealer in Pune, he provided me a delivery note and I also had him sign on a sale note that I had drafted.
I submitted the following to the Insurance company.
1. Delivery note with dealers stamp.
2. Sale note with dealers stamp.
3. RC book copy.
4. Insurance certificate copy.
5. Hypothecation removal NOC copy from the bank.
6. Copy of the payment Demand Draft from the dealer.
7. Application to the Insurance company to issue a NCB certificate to me (Hand written one at the Insurance firm).

Ditto they issued me the NCB certificate in 5 minutes ! The certificate is valid for 3 years from date of last Insurance premium and is a 50% NCB.

I now have only 1 concern, maybe forum members might be able to help me here.
The vehicle is still in my name, since a dealer sells the car to a prospective buyer and then transfers it in one go. If by some mishap (I pray not), there is some accident with my vehicle, can the dealer claim the insurance that is currently valid on the vehicle ? Or can I prevent him from doing it (the vehicle/insurance is still on my name). I have signed the transfer forms and provided them to the dealer.
Also what would happen to the new NCB that the Insurance company gave me in this case ?

[rjvora_2000]

Originally Posted by autoenthusiast

I got my NCB certificate from my Insurance company. They were so prompt in issuing my NCB certificate that I was really taken by surprise the way services have improved in this sector.

I sold my car to the Hyundai dealer in Pune, he provided me a delivery note and I also had him sign on a sale note that I had drafted.
I submitted the following to the Insurance company.
1. Delivery note with dealers stamp.
2. Sale note with dealers stamp.
3. RC book copy.
4. Insurance certificate copy.
5. Hypothecation removal NOC copy from the bank.
6. Copy of the payment Demand Draft from the dealer.
7. Application to the Insurance company to issue a NCB certificate to me (Hand written one at the Insurance firm).

Ditto they issued me the NCB certificate in 5 minutes ! The certificate is valid for 3 years from date of last Insurance premium and is a 50% NCB.

I now have only 1 concern, maybe forum members might be able to help me here.
The vehicle is still in my name, since a dealer sells the car to a prospective buyer and then transfers it in one go. If by some mishap (I pray not), there is some accident with my vehicle, can the dealer claim the insurance that is currently valid on the vehicle ? Or can I prevent him from doing it (the vehicle/insurance is still on my name). I have signed the transfer forms and provided them to the dealer.
Also what would happen to the new NCB that the Insurance company gave me in this case ?

Well I think in this case, You don't have to worry for your NCB certificate because insurance company has canceled the earlier insurance policy which was in your name then only they have issued the NCB certificate to you.

Dealer can not make any claim in your insurance policy because insurance policy has been canceled in there records as well.

The person who will buy your car from the dealer, he will have to do the insurance from first day it self.

[autoenthusiast]

Well, the insurance company didn't cancel the existing insurance, it's still valid, but they mentioned the the new owner will have to come and transfer the insurance.

[ak-47]

Originally Posted by autoenthusiast

I got my NCB certificate from my Insurance company. They were so prompt in issuing my NCB certificate that I was really taken by surprise the way services have improved in this sector.

I sold my car to the Hyundai dealer in Pune, he provided me a delivery note and I also had him sign on a sale note that I had drafted.
I submitted the following to the Insurance company.
1. Delivery note with dealers stamp.
2. Sale note with dealers stamp.
3. RC book copy.
4. Insurance certificate copy.
5. Hypothecation removal NOC copy from the bank.
6. Copy of the payment Demand Draft from the dealer.
7. Application to the Insurance company to issue a NCB certificate to me (Hand written one at the Insurance firm).

Ditto they issued me the NCB certificate in 5 minutes ! The certificate is valid for 3 years from date of last Insurance premium and is a 50% NCB.

I now have only 1 concern, maybe forum members might be able to help me here.
The vehicle is still in my name, since a dealer sells the car to a prospective buyer and then transfers it in one go. If by some mishap (I pray not), there is some accident with my vehicle, can the dealer claim the insurance that is currently valid on the vehicle ? Or can I prevent him from doing it (the vehicle/insurance is still on my name). I have signed the transfer forms and provided them to the dealer.
Also what would happen to the new NCB that the Insurance company gave me in this case ?

As mentioned by rjvora, your old policy stands canceled. In my case, I had negotiated a good price for my old vehicle; When I told the buyer/dealer that I have to cancel the existing policy (in order to claim NCB for my new vehilce), he wanted to renegotiate the price; so I bought him a fresh policy for the old vehicle. It was worth it, because I was getting a huge discount (NCB) on my new vehicle policy.

On a related note, when your dealer informs you about the sale of your old vehicle, make sure you get a confirmation that your old vehicle has been "officially" transferred to the new owner. ( better to ask for a copy of the RC book, after transfer ). I have heard of a few cases where the seller had done all the formalities (as mentioned by you), but still the vehicle remained in the seller's name for quite some time - and, in some cases the "ownership" has been misused.

cheers

[autoenthusiast]

Just spoke to the insurance company again, the existing Insurance on the car is very much valid. They mentioned that the new owner will have to submit an insurance transfer form along with the changed name on the updated RC book.

[somebodystopme]

WOW man never knew about this. God damn. I didnt insured my 15 year old 800 last year. If i had I would have used its benefit on insurance of new car that i'll buy in future.

[rjvora_2000]

Originally Posted by autoenthusiast

Just spoke to the insurance company again, the existing Insurance on the car is very much valid. They mentioned that the new owner will have to submit an insurance transfer form along with the changed name on the updated RC book.

Ok, in that case the purchaser will have to pay the NCB (%) amount (in the proportion to the days left for insurance renewal date) to the insurance company and he can get the insurance transfer in his name.

[rjvora_2000]

Originally Posted by somebodystopme

WOW man never knew about this. God damn. I didnt insured my 15 year old 800 last year. If i had I would have used its benefit on insurance of new car that i'll buy in future.

Still before renewal date you can ask your insurance company to renew your 800 and pay only tp premium and still they will issue the NCB letter to you.