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Old 25th February 2019, 18:07   #1066
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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But Suresh, as it is a propreitorship firm, shouldn't all expense done and revenues earned by an individual be reported in his IT return?
Correct but you can still claim depreciation under section 32, to my knowledge - after maintaining a log book showing use of the car for business purposes, along with its being owned by the firm rather than an individual. It isnt easy to convince a tax official so make sure the log shows that the car was used for business trips, so produce the log if asked, and deduct any % of the amount spent that was used for personal work.
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Old 26th February 2019, 16:56   #1067
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Quick question guys - Is it mandatory to furnish Form 29/30 to avail the NCB certificate or would a Delivery note work instead?
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Old 26th February 2019, 17:25   #1068
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Quick question guys - Is it mandatory to furnish Form 29/30 to avail the NCB certificate or would a Delivery note work instead?
Often the insurer may issue the letter provisionally and then ask that the endorsed rc book showing the new owner be given to them when you get it / within some time limit

Especially if you sold it to some dealer then make sure you send a copy of form tcr along with the sale paperwork copy to your rto. That way if the dealer or buyer runs the car without registering it, the cops won't chase after you.
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Old 26th February 2019, 18:37   #1069
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Quick question guys - Is it mandatory to furnish Form 29/30 to avail the NCB certificate or would a Delivery note work instead?
It is mandatory to furnish the changed RC to get the NCB certificate. Copy of Form 29 & 30 + Delivery note are not valid documents for availing the NCb certificate.

As Suresh said, an NCB eligibility endorsement can be obtained from the Insurance co by submitting the copy of the receipt from RTO for the RC ownership change. This endorsement is perfectly valid for Insurance purchase on new car.

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Especially if you sold it to some dealer then make sure you send a copy of form tcr along with the sale paperwork copy to your rto. That way if the dealer or buyer runs the car without registering it, the cops won't chase after you.
Unfortunately until the ownership changes in the RTO records and the RC, the existing owner is the liable for any thing (illegal or legal) with the car. Merely sending a letter to RTO will not suffice however the delivery receipt of the registered post sent to RTO will hold some value in case of any argument.

Changed ownership in RC is the fool proof way of getting the cops off your back.
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Old 26th February 2019, 18:43   #1070
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Unfortunately until the ownership changes in the RTO records and the RC, the existing owner is the liable for any thing (illegal or legal) with the car. Merely sending a letter to RTO will not suffice however the delivery receipt of the registered post sent to RTO will hold some value in case of any argument.

Changed ownership in RC is the fool proof way of getting the cops off your back.
A letter in form tcr is an intimation to the RTO on its own form of the sale having taken place. It covers you for the period it reasonably takes to transfer the rc meaning a few weeks. If the dealer or buyer is running the car without transferring it for months you are in trouble if he hits someone.
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Old 26th February 2019, 19:48   #1071
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by ajay99 View Post
It is not necessarily like that. You will get a great benefit when you upgrade to a costly luxury car maybe few years later. I know the case of friend who was not aware of the nuances of NCB.He had accumulated NCB of 50 percent on his Toyota Corolla Altis and last year he made a claim which was more than the NCB amount.He has decided to upgrade to a HONDA CRV this year and now only he has realised his folly.He would have got a substantial monetary benefit as NCB on his new cars own damage premium if he had not made the claim and lost his NCB status
Of course, these days there is also a provision of NCB protection for upto 2 claims in an year provided by some insurers.
On another note, I know of few long term car owners who still enjoy upto 65 percent NCB benefit.
Why worry for the future and lose money now? What if you pay 10 to 20k from your pocket a few times over 5 years to save NCB and then you have to make a major claim and lose the NCB anyway? Also, the NCB only saves a few thousand each year. Why would anyone pay an amount more than the NCB savings from their pocket? Finally, the NCB is capped at a max 50%, so the 65% savings is impossible.

Last edited by Lobogris : 26th February 2019 at 19:53.
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Old 27th February 2019, 13:14   #1072
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Often the insurer may issue the letter provisionally and then ask that the endorsed rc book showing the new owner be given to them when you get it / within some time limit

Especially if you sold it to some dealer then make sure you send a copy of form tcr along with the sale paperwork copy to your rto. That way if the dealer or buyer runs the car without registering it, the cops won't chase after you.
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Originally Posted by ghodlur View Post
It is mandatory to furnish the changed RC to get the NCB certificate. Copy of Form 29 & 30 + Delivery note are not valid documents for availing the NCb certificate.

As Suresh said, an NCB eligibility endorsement can be obtained from the Insurance co by submitting the copy of the receipt from RTO for the RC ownership change. This endorsement is perfectly valid for Insurance purchase on new car.

Thank you guys. Now, please correct me if I am wrong.



So, I had 50% NCB on my i20 which I sold off to a dealer. Insurance on the i20 was originally taken by HDFC. The dealer after selling the car to someone else has provided me the copy of the new RC card with the details of the new owner and a copy of the new insurance with the details of the new owner. Now with just those two documents + Delivery note (which was handed over to me during handover of the car), can I go to HDFC and request the NCB certificate? When and once I do, I take this to Nexa (from where I bought my new car) and hand it over to them and get a refund of X amount towards the insurance I paid for my new car.
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Old 27th February 2019, 13:40   #1073
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Now with just those two documents + Delivery note (which was handed over to me during handover of the car), can I go to HDFC and request the NCB certificate? When and once I do, I take this to Nexa (from where I bought my new car) and hand it over to them and get a refund of X amount towards the insurance I paid for my new car.
Yes, with the two documents, you should be able to get the NCB certificate from HDFC. However since you have already paid for the Insurance of the new car either you can avail the refund of the Insurance premium equal to NCB deductions (provided the dealer agrees to provide the refund) or use the NCB eligibility during the first year renewal.

Any particular reason why you couldn't use the NCB eligibility during the new car Insurance purchase? You could have done that with a simple endorsement. I am sure you have paid more for the Insurance when buying from dealer than if you had bought it online yourself.
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Old 27th February 2019, 14:41   #1074
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by ghodlur View Post
Yes, with the two documents, you should be able to get the NCB certificate from HDFC. However since you have already paid for the Insurance of the new car either you can avail the refund of the Insurance premium equal to NCB deductions (provided the dealer agrees to provide the refund) or use the NCB eligibility during the first year renewal.

Any particular reason why you couldn't use the NCB eligibility during the new car Insurance purchase? You could have done that with a simple endorsement. I am sure you have paid more for the Insurance when buying from dealer than if you had bought it online yourself.
Yes, I did pay a substantially larger amount as compared to what I paid for my old car insurance. I wanted to but could not use the NCB eligibility while purchase of my new car as I was being offered a better OTR price for paying the full amount upfront, however, I was promised by the dealer that I could use the eligibility during the first year renewal once I procure the NCB certificate from the old insurance provider.
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Old 27th February 2019, 16:57   #1075
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by 9thsphinx View Post
Yes, I did pay a substantially larger amount as compared to what I paid for my old car insurance. I wanted to but could not use the NCB eligibility while purchase of my new car as I was being offered a better OTR price for paying the full amount upfront, however, I was promised by the dealer that I could use the eligibility during the first year renewal once I procure the NCB certificate from the old insurance provider.
The ncb certificate once issued is valid for upto three years so that is fine. You can do that.

From next year shift the insurance to a known insurer where you have other policies such as mediclaim etc and have a better relationship with the insurer.
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Old 27th February 2019, 18:53   #1076
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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however, I was promised by the dealer that I could use the eligibility during the first year renewal once I procure the NCB certificate from the old insurance provider.
Even if the dealer hadn't promised, you could have used the NCB during the first year renewal. What the dealer should have promised (in writing) that the NCB amount applicable would be returned immediately on producing the NCB certificate. This way the discount could have been more on the new car Insurance.
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Old 3rd March 2019, 07:09   #1077
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

[quote=ghodlur;4550953]It is mandatory to furnish the changed RC to get the NCB certificate. Copy of Form 29 & 30 + Delivery note are not valid documents for availing the NCb certificate.

/QUOTE]

Hi, I have a different experience. Delivery note and an e mail from my side requesting for issuance of NCB did the job for me. I have received the hard copy of the NCB for my car which has been sold off to cars24 2 weeks back. RC transfer is expected to happen over the next 90 days.
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Old 3rd March 2019, 08:09   #1078
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by SU-30MKI View Post
Hi, I have a different experience. Delivery note and an e mail from my side requesting for issuance of NCB did the job for me. I have received the hard copy of the NCB for my car which has been sold off to cars24 2 weeks back. RC transfer is expected to happen over the next 90 days.
Do read the letter. The NCB is conditional on your submitting the RC once changed. If you don't do it in a reasonable amount of time, it may stand revoked.
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Old 3rd March 2019, 08:59   #1079
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Sir, please find the copy of the letter
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Old 3rd March 2019, 19:26   #1080
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Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

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Originally Posted by Lobogris View Post
Why worry for the future and lose money now? What if you pay 10 to 20k from your pocket a few times over 5 years to save NCB and then you have to make a major claim and lose the NCB anyway? Also, the NCB only saves a few thousand each year. Why would anyone pay an amount more than the NCB savings from their pocket? Finally, the NCB is capped at a max 50%, so the 65% savings is impossible.
In case of many vehicles the gains may be in the region of not thousands,but much higher amounts.
NCB is capped at 50 percent after the IRDA rules came into existence,but those who were enjoying the benefit of higher NCB before that were allowed to continue the benefit at the same percentage.
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