[kalyan_hyd]

Originally Posted by ghodlur

Kalyan,

let me answer your queries for points 3 & 4

Answer to point#3: The cancelling of the Current Insurance does not happen overnight unfortunately. You will need to submit an application for the current Insurance cancellation and request for the NCB letter. Once the insurance is cancelled , you will need to buy a TPL only insurance for the Honda city as bare minimum requirement. This policy can be bought online too so the cover will start form the time the policy is issues. So this takes care of the Honda City Insurance.

Thanks for taking time to answer my queries. I was also able to call Bajaj Alliaz Customer service and get great response.

The process needs to be taken offline(meaning at the nearest BA office) to make it fast. I am visiting the office today, I was told that they will cancel the old policy instantly(effective tonight) and issue me a NCB reservation letter. At the minimum, I need to take a third-party insurance on Honda City or I could choose a comprehensive policy with 0% NCB, planning for the latter as I would still be using the old car for some time.

Originally Posted by ghodlur

Answer to point#4: You will need to initiate the transfer of the existing Insurance from previous owner to your name. Anyways you wont be paying for the Insurance on the BMW till the present insurance expires. Once you get hold of the NCB letter from BA (which you need to expedite since the BMW insurance expires in the coming month), you can renew the Insurance for the BMW from BA using the NCB eligibility.

Yes, you are right, I can use the NCB reservation letter to claim the discount. The BA representative has arranged for a call-back on Saturday, he would need the scanned copy of the RC and the NCB letter to create a proforma invoice for the policy on the BMW. I got a quote for 0 depreciation policy on the car yesterday with 50% NCB consideration and it was lucrative. Again, since the car is from 2012, the online system does not allow NCB more than a certain percentage so they need to do this offline.

And in the worst case, the representative assured me that I can renew my policy with 0% NCB and can claim a refund once the NCB reservation letter is received by them.

Originally Posted by ghodlur

So this way both the cars will be covered by BA. I must admit your fascination to stick to only one Insurance co in these competitive times. I also assume you must have confirmed that both the car workshops have cashless tie up with BA.

I have been dealing with BA for the past 8+ years now. The initial move was a result of them having an office in the same building I used to work at. And that relationship continued. I have found them to be very accommodating and competent. Before every renewal, I do look around, mostly online to find quotes from other providers for the same IDV and do a comparison. Mostly BA is within 10% limits of the others, at times expensive and at times less expensive.

Thanks,
Kalyan

[sourabhzen]

Advise needed:

My car's insurance is due for renewal on August 31. However, I am planning to sell this car and buy a new one in October. Now my queries are:

1. Shall I cancel this insurance, get NCB and get another 3rd party insurance for current car?
2. How do I cancel this insurance?

[ghodlur]

Originally Posted by sourabhzen

1. Shall I cancel this insurance, get NCB and get another 3rd party insurance for current car?
2. How do I cancel this insurance?

Are you planning to sell a car without any valid insurance on it? I would suggest not to. You can opt to buy TPL only insurance during the renewal on the car you are planning to sell. To answer your queries:
1) No need to cancel the Insurance, just get a TPL only insurance during renewal. You can apply to the Insurer for a NCB letter stating the reason of planning to sell the car.
2) With Insurance lapsing in less than a week, I would suggest do not cancel the Insurance.

[sourabhzen]

Originally Posted by ghodlur

Are you planning to sell a car without any valid insurance on it? I would suggest not to. You can opt to buy TPL only insurance during the renewal on the car you are planning to sell.

No, I am planning to sell the car with TPL only but from different agency. I believe I can cancel the existing insurance and get NCB certificate this way.

I don't know if this is the right way to go about it.

All in all, I want NCB to be transferred to the new car while I get TPL for this car before selling.

[ghodlur]

Originally Posted by sourabhzen

No, I am planning to sell the car with TPL only but from different agency. I believe I can cancel the existing insurance and get NCB certificate this way.

I don't know if this is the right way to go about it.

All in all, I want NCB to be transferred to the new car while I get TPL for this car before selling.

That's the right way to go about. Buy TPL on the old car, apply for NCB. Use NCB while buying new car.

Only ensure that the Insurance on old car gets duly transferred to the new buyer only after the car ownership has been transferred (or can be done parallelly if the buyer is known acquaintance).

[jinojohnt]

My Insurer (Oriental Insurance) says that I need to pay back the (full) no-claim bonus amount given to me, if I need a no-claim certificate from them for insuring my (planned) new car. The buyer of my current car would also need to pay the pro-rated amount if he wants to transfer my insurance to his name. Isn't this double charging?

[ghodlur]

Originally Posted by jinojohnt

My Insurer (Oriental Insurance) says that I need to pay back the (full) no-claim bonus amount given to me, if I need a no-claim certificate from them for insuring my (planned) new car. The buyer of my current car would also need to pay the pro-rated amount if he wants to transfer my insurance to his name. Isn't this double charging?

The NCB amount eligible for the year will have to be refunded on pro rata basis either by the seller or the purchase and not both the parties if the insured vehicle is being sold in between the policy year. So either you pay the NCB amount and apply for the NCB certificate or the purchaser would pay back the amount when transferring the Insurance & you still apply for the NCB letter. Oriental Insurance is messing up with you, don't let them take you for a ride.

[TorqueHP]

Originally Posted by kalyan_hyd

NCB is in percentages, your old policy would clearly mention the NCB given to you in your last policy, if there were no claims in the past year, your NCB would move to the next bracket 10% -> 20%, 20% -> 30% and so on till it reaches 50%. In your new policy with Tata AIG, just make sure that they have moved you to the next bracket and the NCB is calculated over Own Damage(OD) so if the OD premium is say Rs 10,000.00 with NCB of 20%, you would get Rs 2,000.00 off. Whereas, in another policy, your OD for the same car could come to say Rs 20,000.00 in which case you would get a discount of Rs 4,000.00. I hope I could clarify your questions.





Hi TorqueHP & Devendra,

Looking from some suggestions from you guys.

It was nice to read that your(TorqueHP) NCB was refunded. I was getting into such a position myself and was looking around for experiences. My case is a little different to yours but your advice would be highly appreciated.

1. I own a Honda City from 2009 on my name and the current NCB on that is 50% as I have no claims on the car since its purchase. The policy is with Bajaj Allianz. It expires on Dec 18th, 2015.

2. I recently bought a pre-owned BMW X1. The RC just got transferred into my name and I have 10 working days to get the insurance policy changed to my name. It is valid until Sep 20th, 2015.

3. I was planning to cancel the policy on my Honda City and get the NCB letter while renewing the policy with 0% NCB. How does the cancel on the current policy work, does it get cancelled from say the night I make the call and can I get the new policy to start the same night without any continuation issues? I plan to retain Bajaj Alliaz as the provider for both the cars.

4. Now, should I go ahead and initiate the transfer of the previous insurance on the BMW to my name and use the NCB letter while renewing the policy in September. Or, should I wait for the NCB letter to arrive for the insurance on Honda City and use that now itself to get the current policy on the BMW transferred to my name with the NCB. I am not looking for a pro-rated refund as the previous owner had 0% NCB since the period of covered insurance left-out on the new car is less than a month.


Thanks & Regards,
Kalyan

Hi Kalyan,

Sorry for my slow response.

In my case what I did was: 1) Cancel my current insurance with Maruti (Oriental Insurance) with 50% NCB & request NCB letter (Maruti Insurance took care of this) - the NCB letter takes about a week to be delivered 2) Get a new policy from Maruti (Royal Sundaram) with 0% NCB with immediate effect. 3) Since I did this only a day before I received my new car, my new car insurer (BA) assured me that I can submit NCB letter later once I receive it and get the NCB discount as refund - though it took a while they eventually agreed to provide this as they had no grounds to not honour my NCB eligibility.

Given what you explained and especially given that you are going with the same insurer for both your cars (BA), my suggestion would be to cancel your Honda City policy while requesting for a NCB letter, get a new one with 0% NCB for Honda City & use your NCB letter to renew from BA in Sep for your BMW X1. My key learning is that NCB is really something you are eligible for and you can certainly transfer it to a vehicle within the same class (i.e. from a Car -> to a another Car. Some insurers may tell you you cannot do it from Class C to Class D etc. - that's not correct!). So you are currently eligible for 50% NCB for 1 car and can use this benefit either for your Honda City or your BMW X1. Hope this helps.

[kalyan_hyd]

Originally Posted by TorqueHP

Hi Kalyan,


Given what you explained and especially given that you are going with the same insurer for both your cars (BA), my suggestion would be to cancel your Honda City policy while requesting for a NCB letter, get a new one with 0% NCB for Honda City & use your NCB letter to renew from BA in Sep for your BMW X1. My key learning is that NCB is really something you are eligible for and you can certainly transfer it to a vehicle within the same class (i.e. from a Car -> to a another Car. Some insurers may tell you you cannot do it from Class C to Class D etc. - that's not correct!). So you are currently eligible for 50% NCB for 1 car and can use this benefit either for your Honda City or your BMW X1. Hope this helps.

Thanks TorqueHP,

Yes, what you mention in my exact plan. Also remember having read on this very thread somewhere that you can also transfer NCB from a Motorycle to a Car.

Originally Posted by sourabhzen

Advise needed:

1. Shall I cancel this insurance, get NCB and get another 3rd party insurance for current car?
2. How do I cancel this insurance?

Dear sourabhzen

As another user suggested, I would recommend not to cancel the policy for the remainder of 1 weeks time. Visit your insurance provider in person and start a TP only insurance dated Sep 1 on this car. However, please note that while selling the car the TP only insurance might fetch you a little less re-sale value on the car.

You can renew your policy even today, you don't have to wait until the last day or till this expires. Once the new policy starts on Sep 1, you can request the provider for the NCB reservation letter or NCB letter. You can then take that to the new provider while getting your new car insured to claim the NCB.

The best way is to call your current provider and discuss the plan so that they can tell you what works with them. In my case, Bajaj Allianz folks were extremely helpful.

Thanks,
Kalyan

[lancer_rit]

Should have found this thread earlier. I have a 50% NCB on my 2003 Lancer, and plan to buy a new car in a couple of months.

Was unsure how to proceed so that I can transfer the NCB when I buy my new car (I am not planning to sell my Lancer !). Was too busy at work, and in the meanwhile my Lancer's insurance lapsed (last month).

So I have to renew my Lancer's insurance. How should I proceed so that I can have the NCB benefit on my new car ? (probably to be purchased in next 3-4 months)

a) Taken Lancer insurance with NCB, and later cancel it when I buy the new car ?
OR
b) Take Lancer insurance w/o NCB. (Do I apply for NCB certificate ?)

Thanks in advance

[lancer_rit]

Originally Posted by lancer_rit

So I have to renew my old Lancer's insurance. How should I proceed so that I can have the NCB benefit on my new car ? (probably to be purchased in next 3-4 months)

a) Take Lancer insurance with NCB, and later cancel it when I buy the new car ?
OR
b) Take Lancer insurance w/o NCB. (Do I apply for NCB certificate from old insurer ?)

Thanks in advance

Hope bhpians can give guidance on how to proceed ? Need to take a call in a day or two, thanks!

[sandeep108]

IMO, NCB transfer to new car is available only when old car is sold/transferred to another entity. Also new car is to be in same name/entity as old car.

[lancer_rit]

Originally Posted by sandeep108

IMO, NCB transfer to new car is available only when old car is sold/transferred to another entity. Also new car is to be in same name/entity as old car.

Earlier i thought so too but the article mentioned it is possible to do a transfer of ncb even without selling the car? So checking.

[ghodlur]

Originally Posted by lancer_rit

a) Taken Lancer insurance with NCB, and later cancel it when I buy the new car ?
OR
b) Take Lancer insurance w/o NCB. (Do I apply for NCB certificate ?)

The best you can do right now is buy a Third Party Liability only policy on the Lancer and apply for NCB certificate with the Insurance co. Generally if the car is not sold then most of the Insurance co's mark the NCB applicable on the application letter, some of them do give the NCB certificate. In either case any one would be sufficient enough to proceed for buying the Insurance on new car. If you don't have the NCB certificate, you can still use the 50% NCB during Insurance buying for new car.

If you are happy with the Insurer of Lancer, then you can use it to your advantage of buying the Insurance for new car from them if they provide competitive quote. This will make the NCB usage process much much faster.

[kalyan_hyd]

Originally Posted by lancer_rit

Should have found this thread earlier. I have a 50% NCB on my 2003 Lancer, and plan to buy a new car in a couple of months.

Was unsure how to proceed so that I can transfer the NCB when I buy my new car (I am not planning to sell my Lancer !). Was too busy at work, and in the meanwhile my Lancer's insurance lapsed (last month).

So I have to renew my Lancer's insurance. How should I proceed so that I can have the NCB benefit on my new car ? (probably to be purchased in next 3-4 months)

a) Taken Lancer insurance with NCB, and later cancel it when I buy the new car ?
OR
b) Take Lancer insurance w/o NCB. (Do I apply for NCB certificate ?)

Thanks in advance

1. Since the Lancer insurance has already expired, you can apply for NCB reservation letter with your Insurance provider immediately. You can also parallely start a new comprehensive or a TP only insurance on Lancer with the same provider at 0% NCB. The car can continue to be in your name.

2. You can use the NCB letter to get a discount on the insurance for the new car. The letter can be used for upto three years.