[Durango Dude]

When I sold my Accent and went in for Elantra, I had encashed the NCB and I was given a cheque then for some ₹ 22k, way back in 2005. When I mentioned it to my agent, last year (2018), he flatly denied that anything like this is possible. Is this true that NCB can't be encashed; if so how was I given a cheque from the insurer? Can someone clarify.

[ghodlur]

Originally Posted by Durango Dude

When I sold my Accent and went in for Elantra, I had encashed the NCB and I was given a cheque then for some ₹ 22k, way back in 2005. When I mentioned it to my agent, last year (2018), he flatly denied that anything like this is possible. Is this true that NCB can't be encashed; if so how was I given a cheque from the insurer? Can someone clarify.

The amount which was been refunded back to you was the NCB amount claimed during the insurance year when you sold your car. NCB eligibility cannot be cashed out. It can be transferred to a new car for the same owner.

[arindambasu13]

While I went through the thread, I ended up getting thoroughly confused with the NCB transfer procedure. Here is my situation, will be grateful for a dummy's guide to addressing it:

1. Existing Car (Swift) insurance is with Bharti Axa with 50% NCB. Policy valid till Jan 2020.
2. In case I purchase a new car , say in March of 2019, how do I apply the 50% NCB benefit from my old car to it? Existing Swift will be exchanged with the dealer when buying new car.
3. Insurance for the new car will be taken not from dealer but from Policybazaar online. Also, it is likely to be a different insurance provider, and not Bharti Axa.

A. Upon speaking to the Bharti Axa call centre, they informed me that I would need to send them a copy of Form 29/ 30 after the sale of Swift is completed. This could very well be 1/2 months after I purchase the new car and give my old car in exchange. Also, need to furnish copies of the new car's insurance and RC book to Bharti Axa. They will then issue a NCB reserving letter which I have to use at the time of first renewal of the policy. Is this process correct?

B. Does that mean there is no way to transfer the NCB benefit right now, and apply the benefit to the new car insurance premium (i.e. before the sale of my existing Swift actually takes place, and Form 29/30 is available)?

C. How does one use the NCB reserving letter when renewing policies online, through Policy bazaar etc?

[ghodlur]

Originally Posted by arindambasu13

A. Upon speaking to the Bharti Axa call centre, they informed me that I would need to send them a copy of Form 29/ 30 after the sale of Swift is completed. This could very well be 1/2 months after I purchase the new car and give my old car in exchange. Also, need to furnish copies of the new car's insurance and RC book to Bharti Axa. They will then issue a NCB reserving letter which I have to use at the time of first renewal of the policy. Is this process correct?

B. Does that mean there is no way to transfer the NCB benefit right now, and apply the benefit to the new car insurance premium (i.e. before the sale of my existing Swift actually takes place, and Form 29/30 is available)?

C. How does one use the NCB reserving letter when renewing policies online, through Policy bazaar etc?

The straightforward and standard process to obtain a NCB certificate is furnish the proof of the sale of the old car and use the certificate when buying insurance for new car.

In your case since the sale of old car (I mean the ownership transfer on RC) is after you buy a new car, the best way to go about would be submit an application letter to Bharati Axa (pls also verify with them if they are Ok with this process) stating your intention of selling old car and buying new one and that you need to know your NCB eligibility. Generally Insurance cos endorse the NCB eligibility on the application which can be submitted as proof (if asked) when you are buying Insurance for new car and claiming NCB.

If Bharati Axa plays spoil sport, still submit an application stating your intention of selling old car and buying new one. In this case you can use the NCB eligibility directly when buying insurance for new car. Since you are doing that online, the new car insurance co will contact Bharati Axa to check NCB status. This will reduce your hassles.

If you really intend to use the NCB accumulated when buying insurance for new car, do it when during buying process and not during the first renewal as you will lose a good amount in the form NCB. Simple maths - NCB discount on 5% less ex showroom cost (during new car insurance buying) will be more than 15% less ex showroom cost (during renewal). Hope you get it.

Suggest you to be not fixated to Policy bazaar, but do an online comparison between comparator websites (policy bazaar, Coverfox, Acko, Digit etc) and Insurance co websites online premium rates. I hope you have already identified with which Insurance co does your city authorized workshop have a cashless tie up. If not, pls do so.

Also please note that Bharati Axa will ask you to pay back the NCB amount claimed for the current year policy on pro rata basis.

Sorry for the long post. I hope it will help others too.

[SR-71]

I have a couple of questions

1) My current insurance expires on 31st March. Suppose I take delivery of my new car on April 15th but let the insurance lapse for the old one cause its being exchanged, will I still be able to transfer the NCB for my new car. Will letting the insurance lapse play spoil sport ?

2) In case the dealer is giving me the insurance complementary is it still possible to transfer the NCB after the dealer gives me the insurance

[hserus]

Get the NCB letter for your insurance policy by selling the car before it lapses.

The NCB letter is valid for upto three years so you can use it when you collect your new car on April 15.

Once the old car's RC is transferred you need to send a copy to your insurer or the NCB provisional letter issued may be cancelled.

Originally Posted by SR-71

I have a couple of questions

1) My current insurance expires on 31st March. Suppose I take delivery of my new car on April 15th but let the insurance lapse for the old one cause its being exchanged, will I still be able to transfer the NCB for my new car. Will letting the insurance lapse play spoil sport ?

2) In case the dealer is giving me the insurance complementary is it still possible to transfer the NCB after the dealer gives me the insurance

[alto99]

Get the NCB letter for the old car and submit it to new car's insurance provider for prorated reimbursement for the current year itself. No need to wait for renewal.
I have done that and received the reimbursement in 2010. (more than 50% (ncb of old car) due to new car insurer's mistake)

[ghodlur]

Originally Posted by SR-71

I have a couple of questions

1) My current insurance expires on 31st March. Suppose I take delivery of my new car on April 15th but let the insurance lapse for the old one cause its being exchanged, will I still be able to transfer the NCB for my new car. Will letting the insurance lapse play spoil sport ?

2) In case the dealer is giving me the insurance complementary is it still possible to transfer the NCB after the dealer gives me the insurance

Answering your queries point wise:
1) You cannot exchange/sell your old car without a valid insurance. So its better to renew the insurance of the old car before selling. Selling an uninsured car also results in lower selling price. Letting the Insurance lapse on the old car will not hinder you NCB eligibility when buying Insurance for the new car provided the new car is being bought same owner's name as the old car.

2) If the Insurance is complimentary, how would NCB benefit you? In any case you are not buying the Insurance, isn't it. Suggest to renegotiate with the dealer, buy Insurance on your own using the NCB, get the insurance equivalent amount discounted from the ex show room cost or in some other form like accessories.

[SR-71]

Originally Posted by ghodlur

Answering your queries point wise:
1) You cannot exchange/sell your old car without a valid insurance. So its better to renew the insurance of the old car before selling. Selling an uninsured car also results in lower selling price. Letting the Insurance lapse on the old car will not hinder you NCB eligibility when buying Insurance for the new car provided the new car is being bought same owner's name as the old car.

2) If the Insurance is complimentary, how would NCB benefit you? In any case you are not buying the Insurance, isn't it. Suggest to renegotiate with the dealer, buy Insurance on your own using the NCB, get the insurance equivalent amount discounted from the ex show room cost or in some other form like accessories.

1) The car is being exchanged with the dealer and will happen a very short while before insurance lapses. Lapse or not the dealer will hardly change the price :-)... But your point answers my question, lapse of insurance is not a problem

2) On the query about NCB not being useful with dealer provided insurance, its not entirely true right. While the first year is given by dealer I will still have to pay subsequent year insurances. So NCB will have a big value there, right ? So the question was more about, can I apply the NCB to the insurance after the dealer has issued me a cover note. I do not care if it doesn't apply for that year as I am not paying it but I am OK if it applies from subsequent years. Of-course I will negotiate, but this is a question just to better equip myself for dealing with the car dealer.

Appreciate your response, thank you.

EDIT : I believe "alto99" has answered my 2nd query to some extent a couple of posts above.

[itwasntme]

Originally Posted by alto99

Get the NCB letter for the old car and submit it to new car's insurance provider for prorated reimbursement for the current year itself. No need to wait for renewal.
I have done that and received the reimbursement in 2010. (more than 50% (ncb of old car) due to new car insurer's mistake)

Correct! No need to discuss with dealer right now.

Take possession and complete all formalities with dealer - THEN submit a written / emailed application to the new insurer to apply the NCB, and refund the prorated amount to you. I did this with my Octavia and received a NEFT refund after about 3 weeks, calculated from the day I submitted the application (I think).

These are as per IRDA guidelines so they will be ill-advised to refuse you.

[avingodb]

Do I need to have a hard copy of the NCB letter for transfer?
All I have is a soft copy i got from call cantre and the new agency is demanding a hard copy.

[itwasntme]

Originally Posted by avingodb

Do I need to have a hard copy of the NCB letter for transfer?
All I have is a soft copy i got from call cantre and the new agency is demanding a hard copy.

They do have the right to insist. No worries, call your local office of the old insurer (not any agent/middleman), explain you need the hard copy and then meet them. I got my signed and sealed NCB hard copy in 10 minutes flat.

Keep copies of it and submit it to new insurer.

[ghodlur]

Originally Posted by avingodb

Do I need to have a hard copy of the NCB letter for transfer?
All I have is a soft copy i got from call cantre and the new agency is demanding a hard copy.

Have you sold your old car? If yes, then changed RC is the document which will be required to be submitted for getting the NCB certificate. If the transfer of ownership is still in process, then submit the copy of documents you provided to RTO along with reciept received from RTO to the Insurance co and request for a NCB certificate.

If you just need to need know your NCB eligibility, submit a letter to the Insurance co for endorsement. The endorsement is enough to claim NCB with new Insurance co.

[evilminstrel]

I have a question, how wise is to take zero dep insurance, is it worth paying 4 to 5K bucks extra? I mean in case of any claim, would a depreciation may go as high as 4 to 5 K? This is about 3-year-old Honda City VX(O) to be precise.

[pacman2881]

I have a company car lease and my company name has now changed. This has led to a change in my RC where the 'New Company' name is updated as the second owner. Now, how do I make sure my no claim bonus is maintained. My insurance is up for renewal and Royal Sundaram is telling me that I may not get the the NCB benefit. Is there a way I can get it considering it is actually the same owner.