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

[asitkde]

I already posted this query in the new car price thread along with many other information. However, I was asked to have my insurance related query in this thread, so here I go.

I have just booked a new Honda City E-MT. They have offered me free insurance. I currently enjoy a 65% NCB with Bajaj Allianz on my 2004 WagonR Lxi which I am selling off privately.

The Honda dealer is telling me they can take care of the transfer of the NCB to my new car. Since the insurance is free, I am a little confused about the whole procedure. The Honda dealer said they also deal with Bajaj, and if I want, the insurance on the City can be from the same company. What would the insurance policy show? Would it be just a normal looking one mentioning the NCB while dealer pays whatever amount to the insurance company?

[ghodlur]

Originally Posted by asitkde

I have just booked a new Honda City E-MT. They have offered me free insurance. I currently enjoy a 65% NCB with Bajaj Allianz on my 2004 WagonR Lxi which I am selling off privately.

You have yourself given the advantage to the dealer, now he will have to pay lesser for the Insurance which you could have done yourself. Suggest you to renegotiate with the dealer and tell them that you will take care of the Insurance from outside and get a cash back for the Insurance amount given free by dealer or any accessories equivalent.

You buy the new car insurance from Bajaj directly (online preferably) and opt for Zero dep coz with the NCB of 65% the premium amount for zero dep would be bearable.

[asitkde]

Originally Posted by ghodlur

You have yourself given the advantage to the dealer, now he will have to pay lesser for the Insurance which you could have done yourself. Suggest you to renegotiate with the dealer and tell them that you will take care of the Insurance from outside and get a cash back for the Insurance amount given free by dealer or any accessories equivalent.

You buy the new car insurance from Bajaj directly (online preferably) and opt for Zero dep coz with the NCB of 65% the premium amount for zero dep would be bearable.

I appreciate your suggestion. I already tried that, but the SE did not give in. Actually what they are telling me, they do not have that many cars left and do not want to give too much way to the customer over and above what Honda is offering. It's true that on the morning I booked my car, there were 4 City E-MTs booked on the adjoining tables. I got an overall discount of 65k. It may not be that bad a deal.

In any case, you did not answer my query. What happens to my NCB in this case?

[ghodlur]

Originally Posted by asitkde

In any case, you did not answer my query. What happens to my NCB in this case?

Ok. In your case all you need to do is get a NCB letter from Bajaj and ensure that the letter has mentioned that the NCB is valid for 3 yrs (normally NCB is honoured for upto 3 yrs). You get the free insurance which the dealer is offering you for the first year (i guess), produce the NCB letter to the Insurance co with whom you may renew (not neccessarily the same co from where you got the free insurance thru dealer) and avail of the lesser premium.

The catch here is if you have a claim during the first year, your NCB letter will still be honoured by the Insurance co during the second year renewal.

This free insurance which the Honda dealer is offering - does it include zero dep add on? If not is the dealer willing to provide if you insist?

Hope this helps, all the best.

[asitkde]

Thanks a ton, ghodlur. It was really helpful. I did not know that the NCB could remain valid for up to 3 years, even if there is a claim in the first year.

Originally Posted by ghodlur

This free insurance which the Honda dealer is offering - does it include zero dep add on? If not is the dealer willing to provide if you insist?

The free insurance offer (not from the dealership, but directly from Honda, AFAIK)) does not include the zero depreciation option. However, for an extra 5k, they are willing to add it.

[ghodlur]

Originally Posted by asitkde

Thanks a ton, ghodlur. It was really helpful. I did not know that the NCB could remain valid for up to 3 years, even if there is a claim in the first year.
The free insurance offer (not from the dealership, but directly from Honda, AFAIK)) does not include the zero depreciation option. However, for an extra 5k, they are willing to add it.

I would suggest go for the zero dep for that extra peace of mind. In case of any claim, you dont have to pay from your pocket. Next year still get the lesser premium benefit owing to NCB.

This time you got the coin which Amitabh Bachchan had in Sholay (Chit mein meri, pat bhi meri, sorry cant translate in english)

[alto99]

Originally Posted by asitkde

In any case, you did not answer my query. What happens to my NCB in this case?

Take the free insurance ( its actually not free. You will get the policy document mentioning premium paid). After you get the NCB certificate you can produce that to your new insurerd and ask for refund. I have done this with Bajaj Allianz (not for free insuranc scheme though) and they refunded me 50% of own damage amount (a lot more than that actually due to their mistake).

[asitkde]

Okay guys. Thanks a lot for your responses.

As I understand it now,

• I can take the free insurance from Honda for the moment.

• Then once my old car is sold, the first thing is, I let my insurance company (Bajaj) know about it and terminate the insurance on the old car and at the same time ask for a NCB certificate.

• Once I get the NCB certificate (takes about 2 days), I have 2 options:

• (a) I keep it with me for one year, and produce it to the insurance company for the Honda car at the time of renewal to get NCB benefits for the 2nd year,

• (b) I produce it right away to get a refund from the Insurance company on the insurance premium for the Honda car (as alto99 has done above).

Please tell me if my understanding is correct.

[nigeltufnel]

Hi
I have a query. Pardon me if its too noob a question.

My car's rear bumper has slightly come out due to a moron ramming into it while trying to jump a signal. My insurance gets renewed in 10 days and I was wondering if I should get it fixed before I get my insurance renewed?
Will a slightly hanging bumper change the value of insurance for the next year? Or will my NCB be denied if my car looks damaged even though i haven't claimed any insurance.

Thanks

[ghodlur]

Originally Posted by asitkde

I can take the free insurance from Honda for the moment.

Discard the option b, go for option a. From reliable sources I have learned that the free Insurance is actually not given by the dealer, most Insurance companies have a tie up with car manufacturers and they give the free Insurance through the dealer. Although the dealer makes it look like as if he is giving the free Insurance. So take the insurance from dealer and use your NCB for the second year renewal.

Originally Posted by nigeltufnel

Hi
My car's rear bumper has slightly come out due to a moron ramming into it while trying to jump a signal. My insurance gets renewed in 10 days and I was wondering if I should get it fixed before I get my insurance renewed?
Will a slightly hanging bumper change the value of insurance for the next year? Or will my NCB be denied if my car looks damaged even though i haven't claimed any insurance.

If the cost of repairing/replacing the bumper is less than the cost saved on the premium due to NCB then you might as well get it done without any Insurance claim. If you claim insurance now, you will loose the NCB for next year. So decide accordingly. NCB comes into picture only during Insurance claims.
The insurance co (if you stick to the same as earlier year) is not bothered whether the rear bumper is hanging as long as they get their premiums.

[pabheda]

hi guys ,
i was advice same way by honda guys to get a refund later on as they will not give cash discount instead of insurance , so he advice me to get refund on the insurance paid .
I have santro (2004) and i am planning to sell it and buy honda brio or i10

[dmplog]

I have a similar query as what @asitkde has asked.

My question is I have agreed to sell the car to someone.

1) Should I be cancelling the insurance on my Old car and ask the buyer to get a new insurance? I suppose the new buyer has to have the insurance in *his* name.

2) My existing insurance is expiring on 1st Feb 2013 and I have bought a new insurance running till Feb 2014. When I make a sell now (Jan 2013), can I still retain the NCB when I terminate a future policy?

[ghodlur]

Originally Posted by dmplog

1) Should I be cancelling the insurance on my Old car and ask the buyer to get a new insurance? I suppose the new buyer has to have the insurance in *his* name.

2) My existing insurance is expiring on 1st Feb 2013 and I have bought a new insurance running till Feb 2014. When I make a sell now (Jan 2013), can I still retain the NCB when I terminate a future policy?

@dmplog
1) A simple letter for Insurance transfer would be sufficient, no need to cancel the Insurance. Letter for transfer to be submitted post the RC ownership change as new RC copy also has to be attached.

2) When you sell your present car, you transfer the Insurance to the new owner along with ownership(RC). Get the NCB letter from the present Insurer and use it when you buy Insurance for your new car. If you dont want to do so, you can use the NCB letter during the first year Insurance renewal.

[dmplog]

Originally Posted by ghodlur

@dmplog
1) A simple letter for Insurance transfer would be sufficient, no need to cancel the Insurance. Letter for transfer to be submitted post the RC ownership change as new RC copy also has to be attached.

2) When you sell your present car, you transfer the Insurance to the new owner along with ownership(RC). Get the NCB letter from the present Insurer and use it when you buy Insurance for your new car. If you dont want to do so, you can use the NCB letter during the first year Insurance renewal.

Thanks @ghodlur for your super-quick response. I will get going with the Sale.

[pabheda]

hyundai guys r advicing same , but the thing is they won't be helping in this work