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-   -   ARTICLE: No Claim Bonus - How to save on your insurance premiums! (https://www.team-bhp.com/forum/buying-car/18602-article-no-claim-bonus-how-save-your-insurance-premiums-51.html)

Incase the old owner is claiming NCB on the insurance policy, the NCB recovery amount would be made by the insurance company.The question is who should pay the NCB recovery amount? Should it be the old owner or the new owner?

Is NCB transfer thing valid on two wheelers also? Sorry if the questions sound stupid, I have no idea about insurance policies.

I will be selling my Activa in a few months (i.e. around June), insurance expires in November. Can I claim my NCB and use it for a new car purchase? If not, can I transfer it to my existing 2012 Aviator's policy (which expires in June) when it will be renewed? If not, can I get a refund of the NCB amount? And if I take my NCB amount back, I will have to cancel my existing policy, which would result in lesser resale value. Will it make sense to cancel the current policy, take the NCB and get a cheaper policy for selling?

I have no problem in sticking to the same insurance provider. Do note that Activa and the new car will be in my father's name, while Aviator is in my mother's name. Let me know if this is possible or not, and worth the effort or not.

NCB of a 2 wheeler cannot be transferred to a car (LMV)

Transfer from LMV to LMV is possible

NCB on 2 wheeler cannot be transferred to a 4 wheeler. The NCB for the Activa cannot be used on Aviator since the Aviator is owned by your mother whereas NCB on Activa is credited to your father. In fact when you sell the Activa, the NCB claimed for the policy year also will have to be returned on ro rata basis by you to the Insurance co (unless the new owner decides to pay it back based on the mutual agreement).

It will make sense to cancel the current policy, pay the NCB amount claimed for the year, get a NCB certificate, buy a TPL only policy just for the selling sake, buy a new 2 wheeler, avail the NCB on new vehicle Insurance. All this provided the new 2 wheeler is bought in your dad's name (again).

Hope the above is confusion free.

Thanks, the situation is a lot more clear now.

One last question. Can I go like this - cancel current policy, pay NCB claimed for the year, get TP policy and sell Activa and get the NCB amount (of previous policy) by some other means? We have no plans of getting a 2 wheeler in future (for at least 4-5 years), so a refund of NCB amount will be a good option if possible.

Please help!!

I was informed by the Bajaj Allianz folks that if I want to continue with them for my new car (yet to buy); for me to be able to transfer my current NCB (50%), the new car cannot be more than 2000 CC as my current is 1197 CC!?

Will it help if I take the NCB letter and go to a different insurer? Any thoughts?

Thanks

No, it wont help you. BA is right in saying that the NCB can be carried forward to the same segment vehicle and not to a different segment purchase. The least you can do is take the NCB certificate and go shopping online to check which Insurer gives you the best deal.

Thank you Sir; although it really feels :Frustrati . I guess this technicality needs to be highlighted if that's the case with all insurers as it is a serious spoiler when one is dreaming about bringing down the insurance cost on the new car and specifically when switching segments.

I was hopeful of leveraging both online platform shopping and NCB benefits for a new Storme; not sure how much only the former will help now!

Planning to trade in our Maruti 800 for a new Wagon R.
M800 is registered in wife's name and has a valid comprehensive insurance policy valid till Sep 2016.
New car will be in my name so for the insurance can the NCB be transferred from the M800 ? :)
Alternately, will it help if I have another car (Dzire) in my name with a valid comprehensive insurance from the same vendor ?

Unfortunately no. Since the M800 ownership is with your wife, she will carry forward the NCB. So if you buy the Wagon R in your name, you will not be able to use the NCB. Better buy the new car again in your wife's name and utilize the accumulated NCB.

Alternatively since you have the Dzire in your name, you should be eligible for the NCB but only if you sell it. Since you are not going to do that, you can get the eligible NCB from the Dzire Insurance co and use it to buy the Wagon R insurance. There's is only one clarification required from Wagon R Insurance co whether they would accept the NCB accumulated from a vehicle in the segment above the Wagon R.

Insurance NCB can be carried over from any car to any car registered in same catagory. That is Private car to private car, taxi to taxi etc. Everything from a Nano to a less than 13 seat privately registered Tempo traveller or Winger come in the same catagory. I have always used a NCB certificate while buying costlier cars, and directly purchased smaller cars without NCB.

Rahul

Rahul, so what you are saying is that the NCB accumulated on an Alto can be used when buying Insurance of S Cross. Thats news to me. Do you have any document which would substantiate your statements?

Dealers and Insurance agents try every trick in the trade to refuse carrying forward NCB. But I have done it many times. The NCB amounting to 65% from my Tata Estate 1995(bought secondhand in 1997) got transferred to my Indigo in 2003 further to my Tavera in 2006 and is now being utilized on my Polo 2014. Another NCB now ammounting to 50% from my Esteem 1996 (bought second hand in 1999) was transferred to my Ikon in 2004 and is now utilized on my Ecosport 2014. few other NCB's were lost due to claims, or expired as a replacement was not bought within 3 years.

Till date I have stuck only to New India Assurance avoided their agents and dealt only with their development officers.

Private cos have refused carrying over with variety of reasons like change in catagory, and 65% NCB slab does'nt exist any more etc.

Rahul

Sir - In all the examples you've quoted above there's none wherein the NCB transfer was between vehicles which differed by ~ 1000cc in terms of engine capacity; I guess that's primarily the reason why you could do it. The 'category' aspect might still be true but the catch is the engine capacity should not be beyond a certain limit (every insurance company has it's own limit defined) for the NCB to be transferred; within the same Insurance Co.

Quoting my post from few days ago; when I was researching on this.

My NCB from an old Indica was transferred to the new XUV in 2012.