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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-58.html)

I am driving a Ford Figo for 7 years and never made any claim, hence getting the maximum NCB benefit. I am planning to buy a new car and if I do not want to sell the old car, is there any way to transfer the NCB to new car insurance ?

I want to know if the below scenario is possible:
I terminate my current policy and get NCB from the insurer, then go and take insurance for the old car from another company (without any NCB benefit). Use the NCB certificate for the new car that I am buying, which is likely to give me good discount.

If I am selling the old car later, I will be able to get NCB certificate for sure, after insurance transfer is done. By that time, I would have bought the new car with full premium..Would it be possible to get a refund by submitting NCB ? I am sorry, this may have been answered in this thread already as this is the most common scenario.

Thanks to this thread, I will be saving around 15K on my new car insurance.

To my knpwledge, you dont have to cancel the existing policy. Just pay the 50% (with service tax) and give a letter asking them for NCB. They will remove the NCB on your current insurance and you should get the NCB letter in a couple of days.

Good to know that you have claim free insurance till date and wish you would continue on that.
First option: No need to terminate the insurance on the existing car. Apply for NCB certificate to the existing Insurance co. They would endorse your NCB eligibility on the application form which is more than sufficient while buying insurance for the new car and using the accumulated NCB there. Once the Insurance for the existing car is up for renewal, you can a TPL policy only.
Option 2: I would not suggest this coz getting refund from Insurance co is a dicey game. You may or may not get it on time. If you are buying a new car before selling the old one, then you will have to pay the Insurance for the new car in full. You can then submit the NCB certificate and apply for a refund but in all probability you may have to wait till the Insurance renewal of the new car for the NCB certificate advantage as most Insurance cos are known to delay the refund and suggest to use the NCB certificate during renewal

The best way to go about it is get a new Third party only insurance for your old car from the same company, after Securing the NCB certificate from them after surrendering/cancelling the present Comprehensive policy.This NCB certificate is valid for 3 years during which period you can use on the new car you buy and get the benefit.
Remember that NCB is given to the person holding the policy.I have seen people transferring the same insurance they bought decades back and getting upto 65 percent NCB.

This morning I went to the local Bajaj Allianz office in Thane which is closer to my home to get my NCB certificate from the sale of my previous car and to transfer the current insurance to the new owner. I was told that the NCB will be issued only from the branch where the insurance was originally made, so in my case I need to got to Andheri (E).

Also the transfer of insurance will be done at the Maruti dealer and not at the insurance office even though I sold it directly to one of my friends. So I can go to any Maruti dealer and they have a portal from where they can transfer the insurance to the new owner. Is this correct? Why cannot the insurance company directly transfer to the new owner?

That's strange. The policy no is universal, so why the need to go to the issuing branch to get the NCB certificate? You need to talk strong regarding the same. The NCB certificate can be issued based on the status of the policy.

The insurance transfer need not be done at the Maruti dealer since it is issued by BA and not by Maruti. BA has to take the onus of transferring the Insurance to the new owner. They will charge a nominal fee which either you or the buyer can pay.

Please note that when getting the NCB certificate, the Insurance co can ask for the return of the NCB amount claimed for the year on pro rata basis.

Thanks ghodlur. I called up the customer care and they told that either I can get the NCB from any branch or I can email (customercare@bajajallianz.co.in) scanned copy of relevant documents and I will get the NCB certificate through email in 48 hours.
Also the insurance transfer is done at the insurance office itself and I need to provide a fee or Rs 50 + taxes for initiating the transfer. Thereafter upon inspection of the vehicle the transfer will be done.

Folks,

Need some help with my Liberty Videocon Insurance policy which is up for renewal this week.
I'd taken a zero dep policy last year from the dealer only, and was told that my accumulated NCB (50% from Bajaj Allianz) was also adjusted in the premium; I'd shared the NCB certificate for that. However, when I inquired with the insurance company now (for renewal quote), for a normal comprehensive policy, I was told I am eligible for 20% NCB (first year) only as the accumulated NCB was never adjusted last year!? Obviously, my dealer has played some dirty trick here which I failed to catch! And to make matters worse, I've to decide and get a policy active by no later than 6th May as the current one will expire!

I've called my dealer and given him an earful but want to check with experts here on my options?! I still have a copy of the NCB certificate from Bajaj Allianz but will that be of any use to adjust all the accumulated NCBs (including last years')?

Please share your thoughts/suggestions please:

You can still use the NCB during the renewal. The max you will able to use is 50%. Unfortunately you wont be able to use the last year's 20% NCB. The Insurance co will ask for the NCB letter to provide the discount, I would suggest to send the letter to them before hand so that they can calculate the premium accordingly for the renewal.

One imp lesson learnt the hard way. Had you cross checked last year, the premium paid then would have been minimum.

Thank you @ghodlur; the insurance folks finally called back and confirmed that they'll take the accumulated NCB copy and let me know the revised premium; thank god I kept a copy with me from last year!

Just one query though, if the accumulated NCB is capped at 50% then how would I loose the 20% from last year? The way I understood it is, had they applied the 50% last year to the new policy (on ex-showroom price), I could've definitely saved on that. But since that didn't happen, they'll now add it to this year's renewal (on depreciated IDV); so my net loss is the amount I lost failing to adjust the NCB last year, will that amount to 20%; if so, how?

What I meant is even if the NCB was applied to the Insurance policy for new car and if you had a claim free year, the NCB would be still capped at 50%. So any NCB earned last year i.e 20% would not be applicable at all. You could have saved some good amount on the Insurance premium had you used the NCB in the first year when buying a new car coz the IDV of the new car would be higher than the IDV during the first renewal. This will not amount to 20% since the hike in TPL this year will compensate for the loss.

I need some clarity on the NCB since I am exchanging my old car for a new one at Ford.

I was planning to transfer the NCB once the car was given to them and take the insurance from outside.
Now they have decided to give me the first year insurance as free which I will be going for. In this case , does it make a difference in transferring the NCB or can it be done when I renew the insurance after a year? If yes, what docs do I need handy now to use after a year?

Anyone, any pointers on the above query?

This is exactly the situation I was in with Ford last month. What you need to do is this: take the free insurance they are giving you. When you sell your old car to them or to whoever else, take a letter from the new owner (if its to Ford, then on the dealer's letterhead) saying they are buying the car from you. In addition, they need to fill and give you Form 29 and 30 for ownership transfer. Give these three documents to your old car's insurer. They will send you an NCB certificate, which is valid for 3 years. In the second year of ownership of the new car, use the NCB certificate to get a discount on insurance renewal, with any insurer of your choice.

I recently sold my car at Cars24. I have a delivery note from them, but not the Form 29 / 30 yet. Can I use the delivery note to get an NCB certificate?