Team-BHP > Team-BHP Advice > On buying a car


Reply
 
Thread Tools Search this Thread
Old 11th September 2019, 12:08   #1141
Senior - BHPian
 
itwasntme's Avatar
 
Join Date: May 2007
Location: BANGALORE
Posts: 4,253
Thanked: 5,041 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Thinking of selling off current vehicle and getting a new one. I enjoy 50% NCB. Which option below is better?

A. Get a TP only policy (9K!), cancel current comprehensive insurance policy, and get short-period refund (as per IRDA rules) and NCB reservation letter immediately. Apply on new car from day 1.

B. Sell current vehicle to direct buyer or dealer. Buy new vehicle with full insurance. Wait for RC for old vehicle to be changed to buyer's name in say 2 months time. Then apply for NCB reservation letter and approach new insurer for pro-rata refund.

Which is preferable? I am tending towards option A as it is cleaner although need to fork out extra 9K for the TP only policy. In option B, is there any time limit within which I need to apply for pro-rata refund?
itwasntme is offline  
Old 11th September 2019, 12:11   #1142
Senior - BHPian
 
hserus's Avatar
 
Join Date: Sep 2014
Location: Chennai
Posts: 3,922
Thanked: 6,525 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Many insurers are glad to issue you a provisional NCB transfer based on just the vehicle sales paperwork, and will tell you to give them a copy of the RC as soon as you get it. Try if that is an option .. usually is, if you go through a broker or directly through an insurer's office, instead of online.

Quote:
Originally Posted by itwasntme View Post
Thinking of selling off current vehicle and getting a new one. I enjoy 50% NCB. Which option below is better?

A. Get a TP only policy (9K!), cancel current comprehensive insurance policy, and get short-period refund (as per IRDA rules) and NCB reservation letter immediately. Apply on new car from day 1.

B. Sell current vehicle to direct buyer or dealer. Buy new vehicle with full insurance. Wait for RC for old vehicle to be changed to buyer's name in say 2 months time. Then apply for NCB reservation letter and approach new insurer for pro-rata refund.

Which is preferable? I am tending towards option A as it is cleaner although need to fork out extra 9K for the TP only policy. In option B, is there any time limit within which I need to apply for pro-rata refund?
hserus is offline   (2) Thanks
Old 11th September 2019, 12:13   #1143
Senior - BHPian
 
itwasntme's Avatar
 
Join Date: May 2007
Location: BANGALORE
Posts: 4,253
Thanked: 5,041 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Quote:
Originally Posted by hserus View Post
Many insurers are glad to issue you a provisional NCB transfer based on just the vehicle sales paperwork, and will tell you to give them a copy of the RC as soon as you get it. Try if that is an option .. usually is, if you go through a broker or directly through an insurer's office, instead of online.
Great idea combining best of both options! Let me see - existing insurer is Royal Sundaram in BLR. Will reach out to them and post later.
itwasntme is offline  
Old 12th September 2019, 12:12   #1144
Senior - BHPian
 
itwasntme's Avatar
 
Join Date: May 2007
Location: BANGALORE
Posts: 4,253
Thanked: 5,041 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Quote:
Originally Posted by itwasntme View Post
Great idea combining best of both options! Let me see - existing insurer is Royal Sundaram in BLR. Will reach out to them and post later.
Spoke to them - your suggestion was spot on. They only need Form 29/30, current policy, current RC and request letter and a visit to any RS office to issue a provisional NCB letter.

Will personally visit them once to confirm matters. Thanks again!
itwasntme is offline  
Old 5th October 2019, 08:26   #1145
BHPian
 
Join Date: Jun 2015
Location: Thane
Posts: 141
Thanked: 80 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Guys,

I purchased used honda civic on Jan 2019.

Earlier i had Wagon R, sold off in May 2019. (I have NCB of 25%)

The civic insurance will expire within few days, can i apply the NCB of 25% while getting insurance.

Policy bazaar say since the car was transferred with 1 year, NCB cannot be applied.

Is this true.

Please suggest.

Thanks,
dsnaveen21 is offline  
Old 31st October 2019, 08:55   #1146
BHPian
 
nexus's Avatar
 
Join Date: Jul 2018
Location: Pune
Posts: 41
Thanked: 45 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Is it possible to take the benefit of NCB on individual's name while buying a car on company name?
nexus is offline  
Old 31st October 2019, 10:13   #1147
Senior - BHPian
 
hserus's Avatar
 
Join Date: Sep 2014
Location: Chennai
Posts: 3,922
Thanked: 6,525 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Quote:
Originally Posted by nexus View Post
Is it possible to take the benefit of NCB on individual's name while buying a car on company name?
No. Buy the car in your own name?
hserus is offline  
Old 4th November 2019, 20:44   #1148
BHPian
 
mathur2012's Avatar
 
Join Date: Jan 2015
Location: Rohini, Delhi
Posts: 53
Thanked: 43 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

If anybody knows, Can a two wheeler's NCB transferred to a to be purchased 4 wheeler?

Edit : My guess is since it is the policyholder who is insured not the vehicle hence doesn't matter if the vehicle is 2 or 4 wheeler, please correct me if I am wrong.

Last edited by mathur2012 : 4th November 2019 at 21:07.
mathur2012 is offline  
Old 5th November 2019, 07:05   #1149
Senior - BHPian
 
hserus's Avatar
 
Join Date: Sep 2014
Location: Chennai
Posts: 3,922
Thanked: 6,525 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Quote:
Originally Posted by mathur2012 View Post
If anybody knows, Can a two wheeler's NCB transferred to a to be purchased 4 wheeler?

Edit : My guess is since it is the policyholder who is insured not the vehicle hence doesn't matter if the vehicle is 2 or 4 wheeler, please correct me if I am wrong.
Depends on the rules of each insurer. Most of them specify that ncb can only be transferred between vehicles of the same class.
hserus is offline  
Old 5th November 2019, 08:52   #1150
BHPian
 
mathur2012's Avatar
 
Join Date: Jan 2015
Location: Rohini, Delhi
Posts: 53
Thanked: 43 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

I have another query, dealer is quoting me a 1 yr comprehensive + 3 yr third party insurance for 37k and 3 yr comprehensive for 73k. Online it's around 27k and 58k respectively.(Even lower if I reduce it to lowest IDV) My question is wouldn't it be cheaper to buy 1 yr + 2 yr TP policy instead of buying a 3 yr policy as IDV will get reduced over two years and even NCB will increase each year (until 50%)
E.g. In above mentioned case online I am being quoted 27k for 1 yr +3 yr TP cover for a brand new car. However for the same car model if I check online to renew a year old policy the price comes down to 13k so for third year it will be even more cheap. So 27k+13k+11k = 51k for 3 yrs.
mathur2012 is offline  
Old 5th November 2019, 10:21   #1151
Senior - BHPian
 
itwasntme's Avatar
 
Join Date: May 2007
Location: BANGALORE
Posts: 4,253
Thanked: 5,041 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Quote:
Originally Posted by nexus View Post
Is it possible to take the benefit of NCB on individual's name while buying a car on company name?
I've done it the other way around, i.e. when we purchased my wife's company car after 2 years (when she resigned), I procured a NCB letter in her individual name after interacting at length with her then insurer and providing comprehensive details of her employment, resignation and a NOC from her employer. I ultimately received the NCB letter (exactly as per IRDA format) after ~2 months.

You can definitely try as most lease companies (I am assuming it's a lease rather than outright capex by your company) enjoy excellent rapport with insurers & dealers.

Let us know how it goes!
itwasntme is offline  
Old 27th November 2019, 07:23   #1152
BHPian
 
Join Date: Mar 2019
Location: Sydney
Posts: 53
Thanked: 140 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

I've been living overseas since Nov 1990. First in Singapore for 7 years then 22 years in Australia. During this period I have owned and sold several cars both in Singapore and Australia. I am now returning in March 2020 to settle permanently in India. I have booked a Seltos GTX+ DCT and hope to have it delivered by the time I reach India.

I plan to return periodically to Australia where my daughter and grandson live. I am retaining my Australian car for use when I return periodically.

My question is this: can I get benefit of NCB on my Seltos based on my Australian car insurance policy? If so, how do I go about getting this? Do I need to carry a letter from my Australian insurance company?

I owned an Indian Ambassador from 1976 to 1990 when I was in India. I suppose I cannot claim NCB on that policy.

Much appreciate guidance on this matter.

Thanks in advance.

Best regards,

Vidyadhar
Shivaji is offline  
Old 27th November 2019, 08:15   #1153
BHPian
 
Join Date: Nov 2019
Location: Kolkata
Posts: 41
Thanked: 85 Times
Default

Quote:
Originally Posted by mathur2012 View Post
If anybody knows, Can a two wheeler's NCB transferred to a to be purchased 4 wheeler?

Edit : My guess is since it is the policyholder who is insured not the vehicle hence doesn't matter if the vehicle is 2 or 4 wheeler, please correct me if I am wrong.
No. Ncb can only be transferred between same class of vehicles, that means from a private car to a private car, from a two wheeler to a two wheeler, from a goods carrier to a goods carrier and so on.

You must be wondering why so? Well, NCB is basically a reward for your good driving skill / habit. A 2wheeler rider may not be as good at a 4wheeler car, isn't it? A private car driver may not even know how to drive a two wheeler! So there is this rule - transfer of ncb is permissible only between same class of vehicle.

BTW just for info- a legal heir like son/daughter /spouse can claim and get the NCB transferred after the demise of policyholder on humanitarian ground! Insurers are obliged to allow this.

Quote:
Originally Posted by Shivaji View Post
I've been living overseas since Nov 1990. First in Singapore for 7 years then 22 years in Australia. During this period I have owned and sold several cars both in Singapore and Australia. I am now returning in March 2020 to settle permanently in India. I have booked a Seltos GTX+ DCT and hope to have it delivered by the time I reach India.

I plan to return periodically to Australia where my daughter and grandson live. I am retaining my Australian car for use when I return periodically.

My question is this: can I get benefit of NCB on my Seltos based on my Australian car insurance policy? If so, how do I go about getting this? Do I need to carry a letter from my Australian insurance company?

I owned an Indian Ambassador from 1976 to 1990 when I was in India. I suppose I cannot claim NCB on that policy.

Much appreciate guidance on this matter.

Thanks in advance.

Best regards,

Vidyadhar
If you can produce proof of ncb (NCB reservation letter) in your overseas policy you can enjoy NCB in India but only if you sell your vehicle overseas as you cannot enjoy NCB in both the policies. Since you plan not to sell the vehicle Indian insurer will not allow ncb transfer.

As for your 2nd question regarding transfer of ncb from your old ambassador car - NCB is preserved for a maximum of 3 years from the date of sale of vehicle. Since you had sold your ambassador in 1990 the earned NCB had already lapsed in 1993! So unfortunately you can't get NCB benefit transferred.

Last edited by Gannu_1 : 27th November 2019 at 08:58. Reason: Back to back posts merged. Please use the multi-quote button (QUOTE+) while quoting and replying to multiple posts. Thanks.
PAkshay is offline   (1) Thanks
Old 27th November 2019, 09:10   #1154
BHPian
 
Join Date: Mar 2019
Location: Sydney
Posts: 53
Thanked: 140 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Quote:
Originally Posted by PAkshay View Post

If you can produce proof of ncb (NCB reservation letter) in your overseas policy you can enjoy NCB in India but only if you sell your vehicle overseas as you cannot enjoy NCB in both the policies. Since you plan not to sell the vehicle Indian insurer will not allow ncb transfer.

As for your 2nd question regarding transfer of ncb from your old ambassador car - NCB is preserved for a maximum of 3 years from the date of sale of vehicle. Since you had sold your ambassador in 1990 the earned NCB had already lapsed in 1993! So unfortunately you can't get NCB benefit transferred.
Many thanks PAkshay for your very valued response. Much appreciated.
Shivaji is offline   (1) Thanks
Old 27th November 2019, 09:21   #1155
Senior - BHPian
 
itwasntme's Avatar
 
Join Date: May 2007
Location: BANGALORE
Posts: 4,253
Thanked: 5,041 Times
Default Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums!

Quote:
Originally Posted by Shivaji View Post
My question is this: can I get benefit of NCB on my Seltos based on my Australian car insurance policy? If so, how do I go about getting this? Do I need to carry a letter from my Australian insurance company?

I owned an Indian Ambassador from 1976 to 1990 when I was in India. I suppose I cannot claim NCB on that policy.
I'm not an expert but my take is that it is a conditional yes for the first but no for the second.

Firstly, under the IRDA rules, you can apply your overseas NCB provided by an insurer duly registered under that country's insurance regulator after selling your foreign car or transferring to a Third Party only policy (if allowed in that country), within 3 years in India. I would suggest the latter if allowed in OZ. You can of course reinsure it again comprehensively again with another insurer as per your wish.

Secondly, a NCB reservation letter (valid for 3 years from date) is issued by the expiring policy insurer for porting your claim-free record to another insurer. As you do not have a valid one from your earlier stint in IN, you cannot go the statutory way. However, you can seek discounts based on your earlier claim-free history.

Hope this helps in some way.

Last edited by itwasntme : 27th November 2019 at 09:34.
itwasntme is offline  
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright 2000 - 2020, Team-BHP.com
Proudly powered by E2E Networks