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

[arunphilip]

Originally Posted by komalthecoolk

I have booked an Ecosport and the Zero Dep insurance is costing almost 44K. My old insurance (ICICI) has 50% NCB. IF I miss to take the NCB on the first year, I know I can use it during the first renewal but how much does the IDV value depreciate every year? Will it be a big loss for me using the NCB the first time vs using it the second time?

I wasn't aware that you could use the NCB upon first renewal, that's good to know .

Here's the IDV depreciation table provided by HDFC Ergo, it would be the same for other insurers:

Given that the highest depreciation occurs in the first year of ownership, its best to transfer your NCB early onto your new car and not wait for the renewal.

Also, is the 44k insurance quote something that has been provided by the dealer? Consider purchasing the insurance yourself, as it will work out cheaper. For instance, look at the following quotes provided by Coverfox (for an EcoSport TDCi Titanium+ registered in AP):

PS: Not stalking you! We just seem to be bumping into one-another on a few threads!

[komalthecoolk]

Originally Posted by arunphilip

Also, is the 44k insurance quote something that has been provided by the dealer? Consider purchasing the insurance yourself, as it will work out cheaper. For instance, look at the following quotes provided by Coverfox (for an EcoSport TDCi Titanium+ registered in AP):

Attachment 1559451

I was aware that insurance outside will be cheaper but I didn't think it'll be such a difference! The only other concern is the dealer making a scene about taking outside insurance and creating problems for my car delivery.

Originally Posted by arunphilip

PS: Not stalking you! We just seem to be bumping into one-another on a few threads!

Haha, no problems at all. In fact I'm very happy an informed and enthusiastic person like you is going around helping lost souls like us.

[ptushar]

Hi. I am planning to sell my old car to the showroom from where I will purchase my new car (mostly Tata Hexa or Mahindra XUV). I had a few queries on NCB transfer

The person at Tata told me that the NCB can be transferred ONLY after they are able to sell off the car from their end. What that means is that when I leave my old car with them, say they are unable to sell off till the time I take delivery of my new car then that will mean that I will have to pay the full premium amount on the new car. I will be unable to transfer the 50% NCB to the new car.

The question is: In a scenario like this, if I purchase the insurance for the new car and pay full, can I then at a later date (once i get the NCB transfer certificate), apply this NCB on my new policy and get a refund of the amount paid? Is this possible?

[Jaggu]

Originally Posted by ptushar

The question is: In a scenario like this, if I purchase the insurance for the new car and pay full, can I then at a later date (once i get the NCB transfer certificate), apply this NCB on my new policy and get a refund of the amount paid? Is this possible?

Yes that is option 1.

Option 2 is to take a sale delivery note from dealer for old car, then take a new third party for old car and give it to them. Submit these docs with a letter explanation to get the NCB letter issued and get the NCB transferred to the new car. If the new insurance is from same company, then this process will be super breeze through for obvious reasons.

[ptushar]

Originally Posted by Jaggu

Yes that is option 1.

Option 2 is to take a sale delivery note from dealer for old car, then take a new third party for old car and give it to them. Submit these docs with a letter explanation to get the NCB letter issued and get the NCB transferred to the new car. If the new insurance is from same company, then this process will be super breeze through for obvious reasons.

Thanks. This sounds good. My insurance is with Tata AIG. Hope they are able to do this.

On Option 1. Do Insurance companies apply a retrospective NCB easily? Is it better to let the Insurance company know upfront that I intend to do this. Maybe I can buy the cover from TATA AIG itself to make the process easier.

[KK_HakunaMatata]

Originally Posted by ptushar

Hi. I am planning to sell my old car to the showroom from where I will purchase my new car (mostly Tata Hexa or Mahindra XUV). I had a few queries on NCB transfer

The question is: In a scenario like this, if I purchase the insurance for the new car and pay full, can I then at a later date (once i get the NCB transfer certificate), apply this NCB on my new policy and get a refund of the amount paid? Is this possible?

Originally Posted by Jaggu

Yes that is option 1.

Option 2 is to take a sale delivery note from dealer for old car, then take a new third party for old car and give it to them. Submit these docs with a letter explanation to get the NCB letter issued and get the NCB transferred to the new car. If the new insurance is from same company, then this process will be super breeze through for obvious reasons.

Keep in mind that in case of Option 1, you would be effectively loosing money, since the 50% NCB you will be using for the second year premium, which will be lesser than for a new car.

Also, to highlight another point, I have seen that selling car to individuals will fetch you more $$$ than exchanging your car at the show room (even after considering exchange bonus). Given that still you have time for buying (Hexa is not launched yet), try selling at your end.

KK

[Jaggu]

Originally Posted by KK_HakunaMatata

Keep in mind that in case of Option 1, you would be effectively loosing money, since the 50% NCB you will be using for the second year premium, which will be lesser than for a new car.

This is not correct, you get a refund on the original premium paid as a cheque, usually within couple of weeks of submitting the NCB letter. Second year the NCB continues at 50% (max). The loss will be only some taxes types which should not be significant.

Originally Posted by ptushar

Thanks. This sounds good. My insurance is with Tata AIG. Hope they are able to do this.

On Option 1. Do Insurance companies apply a retrospective NCB easily? Is it better to let the Insurance company know upfront that I intend to do this. Maybe I can buy the cover from TATA AIG itself to make the process easier.

Tata Aig was great, i also used them. They asked me just to email me the soft copy of the sale deed etc and issued me NCB letter.

[KK_HakunaMatata]

Originally Posted by Jaggu

This is not correct, you get a refund on the original premium paid as a cheque, usually within couple of weeks of submitting the NCB letter. Second year the NCB continues at 50% (max). The loss will be only some taxes types which should not be significant.

Ok. In my case, I got my NCB certificate after renewing the policy of the second car and Bajaj did not refund me the amount. They asked me to claim NCB in the next year renewal.

KK

[Jaggu]

Originally Posted by KK_HakunaMatata

Ok. In my case, I got my NCB certificate after renewing the policy of the second car and Bajaj did not refund me the amount. They asked me to claim NCB in the next year renewal.

KK

They took the easy route and which is not correct. When we submitted the NCB letter Maruti insurance sent us a cheque within a month or so.

NCB letter was applied at the last moment so it was submitted couple of days after the new vehicle was delivered. But yes right from the beginning we had kept the dealer informed and insisted this has to happen if we had to take the Maruti insurance they were selling.

EDIT: for the bike it was national insurance and they were initially hesitant and asking for RC card copy which would take long time. But when i told they can directly transfer to the new policy which is also from them, they obliged immediately

[goswami.j]

Need some guidance on this NCB query, could not quite find it in the discussion so far.
My Situation :
1. I had a comprehensive insurance on my 6 years old Swift with no claims and thus a 50% NCB bonus.
2. The insurance policy lapsed on 15Dec16
3. I plan to buy a Hexa or XUV by Mar17.

Can I get the NCB certificate for this lapsed insurance policy ? This will be a win win. I use the NCB on my new vehicle, Swift I renew on 3rd party liability only

Other option is to pay the fine for late renewal & then in mar'17 have it cancelled to get the NCB.

Request opinions from the experts on how to proceed.

[pabheda]

Originally Posted by ptushar

Hi. I am planning to sell my old car to the showroom from where I will purchase my new car (mostly Tata Hexa or Mahindra XUV). I had a few queries on NCB transfer

The person at Tata told me that the NCB can be transferred ONLY after they are able to sell off the car from their end. What that means is that when I leave my old car with them, say they are unable to sell off till the time I take delivery of my new car then that will mean that I will have to pay the full premium amount on the new car. I will be unable to transfer the 50% NCB to the new car.

The question is: In a scenario like this, if I purchase the insurance for the new car and pay full, can I then at a later date (once i get the NCB transfer certificate), apply this NCB on my new policy and get a refund of the amount paid? Is this possible?

I am going through same issue too.
Yesterday i did spend 3 hours at united india insurance office , trying to convince madam that i am selling car to showroom and they are giving me delivery note and they are going to issue a new TPA .
But officer there was not ready to give NCB unless there is change of name on RC book.
So now i don't see any option but to wait for dealer to sell the car to someone and name is transferred so we get NCB and we can use it next year.
AS Jaggu said is that possible to get NCB refund in currect policy , i mean after 2 months of purchase of car ?
As my first year insurance would be from Maruti Insurance what precautions would i take ,so i get refund midyear

[Dry Ice]

Originally Posted by pabheda

I am going through same issue too.
Yesterday i did spend 3 hours at united india insurance office , trying to convince madam that i am selling car to showroom and they are giving me delivery note and they are going to issue a new TPA .
But officer there was not ready to give NCB unless there is change of name on RC book.
So now i don't see any option but to wait for dealer to sell the car to someone and name is transferred so we get NCB and we can use it next year.
AS Jaggu said is that possible to get NCB refund in currect policy , i mean after 2 months of purchase of car ?
As my first year insurance would be from Maruti Insurance what precautions would i take ,so i get refund midyear

Something wrong with their logic. What if you simply want to change your comprehensive policy to third party only? The car will continue to be on your name post this change, what do they need in such a case to issue a NCB letter? Or is there no scope of a NCB letter in such a case?

[Jaggu]

Originally Posted by goswami.j

Can I get the NCB certificate for this lapsed insurance policy ? This will be a win win. I use the NCB on my new vehicle, Swift I renew on 3rd party liability only

I strongly doubt if this is possible.

Other option is to pay the fine for late renewal & then in mar'17 have it cancelled to get the NCB.

This is better option and right thing to do. I suggest you do the renewal asap.

Originally Posted by pabheda

I am going through same issue too.
Yesterday i did spend 3 hours at united india insurance office , trying to convince madam that i am selling car to showroom and they are giving me delivery note and they are going to issue a new TPA .

Get a sale note along with copies of filled up transfer forms you are submitting to the dealer. With dealer stamp and maybe a letter also. This might help, again if you are sticking with same company would be easier since they are getting new business. If you are planning to change then they can act tough.

But officer there was not ready to give NCB unless there is change of name on RC book.

Yes that is the actual process to be followed, so they can throw the rule book and say no to grey deals.

AS Jaggu said is that possible to get NCB refund in currect policy , i mean after 2 months of purchase of car ?
As my first year insurance would be from Maruti Insurance what precautions would i take ,so i get refund midyear

I have done this personally, so am fairly confident it is possible. Tata Aig was old insurer, got NCB letter from them then submitted to Maruti Insurance and got a refund cheque. Now the car is in its second year and renewal came with 50% NCB intact.

Like i said before i had clearly mentioned this to the Maruti Insurance guy and after his assurance, i agreed to take the new insurance. I even told them i will not take delivery of new car otherwise. So sales team also was party and they all agreed to oblige.

Originally Posted by Dry Ice

Something wrong with their logic.
===
Or is there no scope of a NCB letter in such a case?

If you go by the books they can deny, logic is correct from their side. Sell vehicle take NCB and transfer it to new vehicle. Hence RC or atleast a B extract is required.

What i have posted above are ways to convince and get the job done with good intention, they have seen many such cases and they know whom and what to believe. At the end of the day it is the officer who sits in the insurance company who has the discretion and decides.

So be nice, be honest and provide as much as alternate proof of sale to convince.

[ptushar]

Originally Posted by Jaggu

Like i said before i had clearly mentioned this to the Maruti Insurance guy and after his assurance, i agreed to take the new insurance. I even told them i will not take delivery of new car otherwise. So sales team also was party and they all agreed to oblige.
[...]
At the end of the day it is the officer who sits in the insurance company who has the discretion and decides

Thanks for your explanation. I now understand what needs to be done. Will definitely go with this option. Will try and take the new insurance from Tata AIG so that the process can become easier.

[ghodlur]

Originally Posted by goswami.j

Can I get the NCB certificate for this lapsed insurance policy ?

NCB for is eligible for every claim free year and stays with the owner not with the car. So even if the policy is lapsed, you are eligible for NCB. Now you need to decide whether to use the NCB for the swift or the new car. Using it for new car is no brainer. So ideally you will need to get the NCB eligibility from the Insurance co which they generally provide on an application letter, it is generally an endorsement. Use the NCB for the new car purchase. Plain and simple. For swift as you said opt for a TPL only insurance.

Insurance co will provide the NCB certificate on the proof of the ownership transfer. In some case they do provide the same on the basis of the application for change of ownership at the RTO (receipt is sufficient). Please note delivery note from a dealer where you are exchanging the car is not a proof of ownership transfer, hence Insurance co have every right to refuse the NCB certificate.