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

[fusionbang]

Originally Posted by r_nairtvm

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

But somewhere I read some insurance companies allow us to do that, hence I posted this question here so that if anybody has done it earlier can help.

IMO it should be made available because EOD the insurance is bought by the same owner.

[Lobogris]

I find NCB to be very hard to transfer unless one plans the purchase in advance.

I recently purchased a slightly used car from a dealer. I traded in my 18 month old car with this dealer as well. I had a NCB of 25% from the past two renewals but I found it hard to transfer it. I ended up driving the new car away the same evening. The new insurance company's agent wanted a NCB certificate from the existing company. The existing company stated that it will take them a few weeks to process it and I had to provide proof in form of a copy of the new RC registered to the new owner. This dealer will sell my car to someone down the line so I obviously didn't have this new RC yet. In addition, I needed insurance to allow me to drive the new car away and I couldn't have waited for the NCB for a week or two. I ended up paying a lot for the new insurance compared to purchasing it online. Online required inspection and a lot of documents that I didn't yet have for the newly purchased car.

Has anyone else handled this in a different manner? Is there any procedure for getting the NCB dded after the policy has been issued?

[ghodlur]

Originally Posted by anooput

Is this a valid case for denial?
Shouldn't the insurance company be refunding the NCB amount going by this?

Sorry mate, this is a valid case for denying the Insurance. Tell me, how did you drive the vehicle which was in your name with an Insurance which was in somebody else's name. If you were to make a claim who would have paid you when the Insurance wasn't in your name at all. It is a thumb rule that when your transfer the ownership of the vehicle parallely the Insurance also need to be transferred.

Originally Posted by fusionbang

IMO it should be made available because EOD the insurance is bought by the same owner.

Agreed the owner is same, but the vehicle type isnt. See below.

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.

Originally Posted by Lobogris

I find NCB to be very hard to transfer unless one plans the purchase in advance.

I recently purchased a slightly used car from a dealer. I traded in my 18 month old car with this dealer as well. I had a NCB of 25% from the past two renewals but I found it hard to transfer it. I ended up driving the new car away the same evening. The new insurance company's agent wanted a NCB certificate from the existing company. The existing company stated that it will take them a few weeks to process it and I had to provide proof in form of a copy of the new RC registered to the new owner. This dealer will sell my car to someone down the line so I obviously didn't have this new RC yet. In addition, I needed insurance to allow me to drive the new car away and I couldn't have waited for the NCB for a week or two. I ended up paying a lot for the new insurance compared to purchasing it online. Online required inspection and a lot of documents that I didn't yet have for the newly purchased car.

Has anyone else handled this in a different manner? Is there any procedure for getting the NCB dded after the policy has been issued?

A big mistake you did my friend of not transferring your old car's ownership and Insurance to the dealer's name. What happens if he sells the car to someone who uses it for illegal activities. On paper you are the owner still, worse you are still the owner in RTO records who can haul you up as an owner. Suggest you transfer the car ASAP.

Regarding NCB, I dont think its a cumbersome process and also buying a car is never an impromptu decision one makes. Its an depreciating investment you see. Ideally NCB transfer can be immediated the day you start the ownership transfer. The docs submitted to the RTO, a copy of the same can be submitted to the Insurance people for NCB certificate which you can use for next purchase. Some insurance co do require the changed RC but a formal request beforehand can help provided you plan the buy the insurance for the next purchase from the same Insurance co. NCB is meant to save you your money on Insurance but in your case you spent an extra I guess.

[Lobogris]

Originally Posted by ghodlur

A big mistake you did my friend of not transferring your old car's ownership and Insurance to the dealer's name. What happens if he sells the car to someone who uses it for illegal activities. On paper you are the owner still, worse you are still the owner in RTO records who can haul you up as an owner. Suggest you transfer the car ASAP.

Regarding NCB, I dont think its a cumbersome process and also buying a car is never an impromptu decision one makes. Its an depreciating investment you see. Ideally NCB transfer can be immediated the day you start the ownership transfer. The docs submitted to the RTO, a copy of the same can be submitted to the Insurance people for NCB certificate which you can use for next purchase. Some insurance co do require the changed RC but a formal request beforehand can help provided you plan the buy the insurance for the next purchase from the same Insurance co. NCB is meant to save you your money on Insurance but in your case you spent an extra I guess.

Thank you for the suggestion. I will try and see if the vehicle can be transferred to the dealer. Is this how most people do it? He did give me receipt stating that the car had been sold to him on xx date which he stated was enough to protect me.The car sold to me was in the name of the original owner and will be registered to me. I seems like the dealer keeps the cars and then transfers them to the new owner rather than spending time and money on getting them transferred to himself in the interim. I saw the same being followed by another dealer I had visited.

I did try to get the same insurance company to insure my new vehicle but they demanded a new RC in the name of the new owner and that takes a few weeks even if the dealer had agreed to transfer in his name.

[JLS]

Originally Posted by Lobogris

.....The existing company stated that it will take them a few weeks to process it and I had to provide proof in form of a copy of the new RC registered to the new owner.
...................
Has anyone else handled this in a different manner? Is there any procedure for getting the NCB dded after the policy has been issued?

What was your existing company? Did you talk to local agent or to their central office?
This whole thing of providing proof in form of RC copy and then only NCB transfer letter could be issued is a big lie.
I was facing the same issue last year, when I sold my Accent to a dealer and was to take delivery of a new Ertiga. Accent was insured by CholaMandlam and local agent was giving me all stories of RC book etc. I contacted their Chennai HO and got NCB transfer letter in two days flat.

Originally Posted by ghodlur

A big mistake you did my friend of not transferring your old car's ownership and Insurance to the dealer's name. What happens if he sells the car to someone who uses it for illegal activities. On paper you are the owner still, worse you are still the owner in RTO records who can haul you up as an owner. Suggest you transfer the car ASAP.

I do not think any used car dealers will transfer a car in their name once while purchasing from a seller and then again transfer again to the actual buyer while selling. Double the RTO charges and twice the trouble to transfer at RTO. Your point reg. illegal activities, should be covered by the receipt of the vehicle given by the dealer I believe.

Originally Posted by Lobogris

Thank you for the suggestion. I will try and see if the vehicle can be transferred to the dealer. Is this how most people do it? He did give me receipt stating that the car had been sold to him on xx date which he stated was enough to protect me.The car sold to me was in the name of the original owner and will be registered to me. I seems like the dealer keeps the cars and then transfers them to the new owner rather than spending time and money on getting them transferred to himself in the interim. I saw the same being followed by another dealer I had visited.

I think this is the practice all the dealers follow. However try with the dealer and see what response you get.
Also, regarding NCB transfer to your new insurance, I believe it will be possible only at renewal next year and not mid way.
If you want to do it mid way, then it may involve cancelling the current policy and taking the new policy - I am not sure about the procedure, but this is the impression I have from my various exchanges and communications last year.

Regards,
JLS

[ghodlur]

Originally Posted by JLS

I do not think any used car dealers will transfer a car in their name once while purchasing from a seller and then again transfer again to the actual buyer while selling. Double the RTO charges and twice the trouble to transfer at RTO. Your point reg. illegal activities, should be covered by the receipt of the vehicle given by the dealer I believe.

A few incidents in the past have revealed that the owner under whose name the car is still registered have been picked up by the cops in connection to the illegal activities committed using the said vehicle coz the cops when search the vehicle database in the RTO come up with the old owner's name who is blissfully unaware that the car which he thought had sold to the dealer had been involved in illegal activity. So its always better to transfer the ownership to the dealer, if the dealer refuses, then its a bad deal.

[ani_meher]

A first owner transfers the ownership to dealer, who in turn sells the car to next buyer. Won't that make the last buyer the third owner of the car? Like 'Temp registrations', is there any 'Temp ownership'?

[searacer932]

All, I have an existing car and planning to get another car(for my wife). Is it possible to transfer the existing NCB from my current car to the new car? I will not be selling my current car.

[ajaypjayaraj]

Originally Posted by searacer932

All, I have an existing car and planning to get another car(for my wife). Is it possible to transfer the existing NCB from my current car to the new car? I will not be selling my current car.

Yes you can. The insurance guys will calculate and tell you the amount you need to pay without applying the NCB for the remaining duration of your valid insurance of the current car. You pay that and they will issue you the NCB certificate which you can apply on insurance for your next car.

[ghodlur]

Originally Posted by ani_meher

A first owner transfers the ownership to dealer, who in turn sells the car to next buyer. Won't that make the last buyer the third owner of the car? Like 'Temp registrations', is there any 'Temp ownership'?

Ideally yes, so the alternative is find that new owner yourselves. You will save on lot of hassles in the first place. Unfortunately nothing like Temp ownership.

Originally Posted by searacer932

All, I have an existing car and planning to get another car(for my wife). Is it possible to transfer the existing NCB from my current car to the new car? I will not be selling my current car.

NCB is not transferred for the vehicle my friend. It remains with the owner. If you buy the new car in your name only then can you transfer the NCB, if buying in wife's name then you cannot tranfers the NCB.

[Jude300]

First let me thank Team-BHP for putting up this article. It has helped me save thousands in my car insurance. I would want to put my experience on getting the NCB here so that it helps others.

I owned a Zen Estilo and it was insured with NATMAR (National insurance for Maruthi). I bought my new Ford Ecosport in October 2013 while the Estilo was sold in December 2013. I took the new insurance online from Royal Sundaram but since I had not sold my Estilo then, I could not claim NCB on the new insurance. However, the internet marketing guy for Royal sundaram assured me that I could ask for a refund of the NCB once I had sold the Estilo by giving them the NCB certificate.

After the sale of Estilo, I sent the scanned copy of the RC book (after the name transfer) and the Insurance copy to NATMAR (mail ID: noclaimbonus@gmail.com). They where prompt to respond and asked me whether I wanted a hard copy / soft copy of the NCB certificate. Though I had suggested to have the hard copy they only sent me a soft copy, which was only a word document.

I forwarded this to Royal sundaram and they said they would not accept the document as it did not have a company seal / signature. I had to get back to NATMAR for the hard copy and that is when the trouble started. They refused to give me a hard copy stating that I had already received the soft copy. After multiple mails with I had to finally have it escalated. That is when the higher authority explained to me detail the difference between the use of the soft & hard copy.

If, your new car is from Maruthi, then a soft copy is enough to claim NCB on its Insurance and it will be accepted at the time of buying the new insurance itself. But for any other car of a different manufacturer, the NCB has to be a hard copy duly signed and with official seal. Fortunately, since I had requested for a hard copy (it was they who sent the soft copy) they sent me a hard copy of the NCB (45%) in a couple of working days.

I took a scan of this hard copy and sent it across to Royal Sundaram. They calculated the NCB for the first year insurance on a pro-rata basis from the date of sale of my Estilo (since I sold it after the purchase of the Ecosport). They also adjusted the service tax paid on it. Since the insurance on my Ecosport was up for renewal, they set-off the refund with the payment for the renewal. They also applied 50% NCB on the basic insurance for the current year. Thus, I had to pay very little for the renewal this year.

The process is fairly simple. I didnt have to even visit any insurance office. I was just sending follow-up mails. The delay in my case was because of the confusion with the soft copy of the NCB. Hence I suggest that you ask for the hard copy to be sent to you and never settle for the soft copy.

Thanks again Team-BHP

[rajshenoy]

Guys, have a quick clarification.

A friend is trying to get the NCB transfer of his old car. And the insurance person is asking him to pay some Recovery amount.

The new car will be registered in the same person name(but the brand of car is different) So is this a norm to pay recovery amount ?

[dass]

Originally Posted by rajshenoy

Guys, have a quick clarification.

A friend is trying to get the NCB transfer of his old car. And the insurance person is asking him to pay some Recovery amount.

The new car will be registered in the same person name(but the brand of car is different) So is this a norm to pay recovery amount ?

I believe the recovery amount is for the remaining period of the insurance of the car being sold off/insurance being transferred. As, the insurance would not carry forward. I think it is normal.

[rajshenoy]

Originally Posted by dass

I believe the recovery amount is for the remaining period of the insurance of the car being sold off/insurance being transferred. As, the insurance would not carry forward. I think it is normal.

Yes thanks alot. Got this clarified by the support. It is because they offered him the NCB during the renewal, he has to return it back in a pro-rated basis.

When i sold my car and got the NCB letter, my insurance renewal data of old car had already passed, hence i never paid any money for the letter. Hence i got confused

[ghodlur]

My Friend who owns a Punto recently had a harrowing time with regards to the NCB letter. He had previously a claim free year with Oriental Insurance and wanted to get a NCB letter for the same so that he could use it for his renewal with Bharati Axa. He had a word with the Oriental guys and was assured a NCB letter. The branch from where the NCB was to be obtained was in Thane and since I stay in Thane offered to help my friend by getting the NCB letter on his behalf. Armed with the authorization letter upon reaching Oriental I was told that they don't give the NCB letter and instead offered to write the NCB eligibility on the authorization letter with Oriental Insurance stamp. They firmly argued that the Insurance co (i.e Bharati Axa in this case) would write them a letter in their format asking Oriental to endorse the same which they would do. No amount of argument for the hard copy of NCB made the Oriental guys budge (too adamant - typical Sarkari style). Returned the endorsed authorization letter to my friend and suggested him to discuss with Bharai Axa. If needed my friend will have to revisit the Oriental office in Thane for re-endorsement on a separate application.

I fail to understand Oriental's logic. Why shouldn't they hand over the NCB letter in case of claim free year then & there? According to them the hard copy NCB letter is issued only in case of car sale & not otherwise.