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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-85.html)

Yes, when you initiate the transfer process, the provider does asks if the new owner has any ncb certificate to be used.

Quoting my own post. Bought an used car last week, but the insurer is refusing application of my unused NCB letter on the grounds that it can be applied only during renewal time, and not during name transfer, i.e. mid-term through the policy.

Is this correct as per IRDA rules?

Yes. You are transferring an existing policy to your name. Hence this position. It has nothing to do with Used car or otherwise. Also as per Vahan rules, you can't cancel the TP Liability portion of a policy already issued.

The premium for current period is already paid for by the original policy holder. I assume, he didn't have any NCB, otherwise insurer would have asked you pay back pro-rata of that NCB

NCB Certificate is Valid for 3 years. You can use it at next renewal, that would be my option

Best Regards & Drive Safe

I can say this with a lot of confidence that your insurance guys are trying to fool you as I did this process of transferring my old car policy (Acko) to the new owner and I had seen an option of selecting any unused NCB letter from the new owner. If not given then the NCB will reset to Zero and the additional amount payable would be shown.
Since the new owner didnt had any NCB letter to be used, I didnt submitted any and he had to pay additional amount to complete the transfer.
Attaching a screenshot for your reference.

Guys, now I am totally confused. Can I apply my NCB on my recently purchased used car or not? As I did it through an online/offline process with Tata AIG, I was not provided any option like what D'Ro@dSt@r states.

Dont get overstressed with this buddy :)
I would suggest try and speak to the customer service team and check if they allow that. If not then, get the policy transferred without the ncb and then after a few weeks, send them the ncb letter to get that updated.
I am getting the ncb updated for my new car policy with Digit and they initially mentioned that it can only be done at the next renewal, but I tried my luck and sent them the ncb letter. Got a call from their team yesterday and they confirmed that they will get the ncb updated and share the refund amount in a few days time.
Ofcourse all insurance companies have their own ways of interpreting the IRDA rules.
Hope this helps.

Already done. But I am now fairly certain it is for new cars only as per this IRDA FAQ:
https://www.policyholder.gov.in/Faql...?CategoryId=78

Scrolled down to see this (highlights mine):

Q. What is "No Claim Bonus"?
A.
No Claim Bonus (NCB) is the benefit accrued to an insured for not making any claims during the previous policy period. As per current norms in India, it ranges from 20% on the Own Damage premium (and not on Liability premium) and progressively increases to a maximum of 50%.

If, however, a claim is lodged, the No Claim Bonus is lost in the subsequent policy period.

NCB is given to the insured and not to the insured vehicle. Hence, on transfer of the vehicle, the insurance policy can be transferred to new owner but not the NCB. The new owner has to pay the difference on account of NCB for the balance policy period.The original owner can, however, use the NCB on a new vehicle purchased by him.

Actually it is 65 percent if the Insured was enjoying that percentage of NCB when the IRDA norms came into effect.

My NCB has been intact since 2003 across 7 new vehicles :thumbs up. I missed the 65% rule by a couple of months.

I'll be buying a new car in a few days. The dealer is tied up with Reliance, Bharti AXA, Magma & Liberty only. Couple of questions.

Current service provider = Godigit

1. Skoda dealer is strongly pushing to purchase from them. Else at time of claim, cashless & co-ordination with insurance provider will need to be done by me.
2. As per Godigit, since new car's engine capacity is more than current, NCB cannot be transferred. Is this true ? Doesn't make sense.

That is not at all correct.NCB has no connection whatsoever with the engine capacity of the car. Either the private insurer guys you are dealing with has no idea about the rules or else they are trying to fool you.
Why dont you transfer your insurance to one of the PSU insurance companies.

Complete rubbish on both points! :mad:

Tell GoDigit to provide it to you in writing/email, and they can get badly rammed by IRDA. Just for this scam attempt, please move away (with your NCB letter), and write to their top management exactly why you're leaving them.

As for Skoda, please get competing quotes and ask Skoda to price-match them. Also do note that Skoda bundles schemes like Skoda Shield etc. into their insurance, so ask them what extra are they offering?

I don't want to mess with the dealer especially when we are dealing with a car worth 40L. I can hold them responsible tomorrow at the time of a claim.

Dealer is now saying that while NCB% will be incorporated into the new insurance, the overall cost of insurance will remain unchanged :Frustrati . Why ? They want to reach their target. I'm not letting go of 45% NCB so easily. We'll get there eventually.

Why do you think you will get better service due to this?

I'm open to suggestions :)

I don't have much experience in the claims area. I've claimed just once in my 20 yrs of driving that too just for the front bumper and headlights. That in itself is a strong indicator that I won't be needing their services and can go with the service provider of my choice. On the other hand, 40L is at stake so rather play it safe I'm thinking. As you can tell, I'm in 2 minds.