Re: ARTICLE: No Claim Bonus - How to save on your insurance premiums! As per motor tariff rules:
GR.27. No Claim Bonus
(a) No Claim Bonus(NCB) can be earned only in the Own Damage section of Policies
covering all classes of vehicles but not on Motor Trade Policies (Road Transit
Risks / Road Risks / Internal Risks) and policies which cover only Fire and / or
Theft Risks. For policies covering Liability with Fire and/or Theft Risks, the NCB
will be applicable only on the Fire and / or Theft components of the premium. An
insured becomes entitled to NCB only at the renewal of a policy after the expiry of
the full duration of 12 months.
(b) No Claim Bonus, wherever applicable, will be as per the following table.
ALL TYPES OF VEHICLES % OF
PREMIUM
No claim made or pending during the preceding full year of
insurance
20%
No claim made or pending during the preceding 2 consecutive
years of insurance
No claim made or pending during the preceding 3 consecutive
years of insurance
No claim made or pending during the preceding 4 consecutive
years of insurance
No claim made or pending during the preceding 5 consecutive
years of insurance
11
DISCOUNT ON
OWN DAMAGE
25%
35%
45%
50%
Sunset Clause: If at the renewal falling due any time between 1
July 2002 and
30
th
June 2003, both days inclusive, (after completion of the full policy period of
12 months) an insured becomes entitled to an NCB of 55% or 65% in terms of the
Tariff prevailing prior to 1
st
July 2002, the entitlement of such higher percentage
of NCB will remain protected for all subsequent renewals till a claim arises under
the policy, in which case the NCB will revert to „Nil‟ at the next renewal.
Thereafter, NCB if any earned, will be in terms of the above table.
(c) The percentage of applicable NCB is to be computed on the Own Damage premium
required for renewal of the insurance after deducting any rebate in respect of "Vehicle
Laid Up" under the policy. If the policy period has been extended in lieu of the rebate
for the lay up of the vehicle, as per „Vehicle Laid Up‟ Regulation, such extended
period shall be deemed to have been part of the preceding year of insurance.
(d) The entitlement of NCB shall follow the fortune of the original insured and not the
vehicle or the policy. In the event of transfer of interest in the policy from one insured
to another, the entitlement of NCB for the new insured will be as per the transferee‟s
eligibility following the transfer of interest.
It is however, clarified that the entitlement of No Claim Bonus will be applicable
for the substituted vehicle subject to the provision that the substituted vehicle on
which the entitled NCB is to be applied is of the same class (as per this tariff) as
the vehicle on which the NCB has been earned.
Provided that where the insured is an individual, and on his/ her death the custody and
use of the vehicle pass to his/her spouse and/or children and/or parents, the NCB
entitlement of the original insured will pass on to such person/s to whom the custody
and use of the vehicle pass.
(e) The percentage of NCB earned on a vehicle owned by an institution during the period
when it was allotted to and exclusively operated by an employee should be passed on
to the employee if the ownership of the vehicle is transferred in the name of the
employee. This will however require submission of a suitable letter from the employer
confirming that prior to transfer of ownership of the vehicle to the employee, it was
allotted to and exclusively operated by the employee during the period in which the
NCB was earned.
(f) In the event of the insured, transferring his insurance from one insurer to another
insurer, the transferee insurer may allow the same rate of NCB which the insured
would have received from the previous insurer. Evidence of the insured's NCB
entitlement either in the form of a renewal notice or a letter confirming the NCB
entitlement from the previous insurer will be required for this purpose.
12
st
Where the insured is unable to produce such evidence of NCB entitlement from the
previous insurer, the claimed NCB may be permitted after obtaining from the insured a
declaration as per the following wording:
“I / We declare that the rate of NCB claimed by me/us is correct and that no claim
as arisen in the expiring policy period (copy of the policy enclosed). I/We further
undertake that if this declaration is found to be incorrect, all benefits under the
policy in respect of Section I of the Policy will stand forfeited.”
Notwithstanding the above declaration, the insurer allowing the NCB will be obliged
to write to the policy issuing office of the previous insurer by recorded delivery calling
for confirmation of the entitlement and rate of NCB for the particular insured and the
previous insurer shall be obliged to provide the information sought within 30 days of
receipt of the letter of enquiry failing which the matter will be treated as a breach of
Tariff on the part of the previous insurer. Failure of the insurer granting the NCB to
write to the previous insurer within 21 days after granting the cover will also
constitute a breach of the Tariff.
(g) If an insured vehicle is sold and not replaced immediately, or laid up, and the policy is
not renewed immediately after expiry, NCB, if any, may be granted on a
subsequent insurance, provided such fresh insurance is effected within 3 (three)
years from the expiry of the previous insurance. The rate of NCB applicable to the
fresh policy shall be that earned at the expiry of the last 12 months period of
insurance.
(h) On production of evidence of having earned NCB abroad, an insured may be granted
NCB on a new policy taken out in India as per entitlement earned abroad, provided
the policy is taken out in India within three years of expiry of the overseas insurance
policy, subject to relevant provisions of NCB under these rules.
(i) Except as provided in Rule (g), no NCB can be allowed when a policy is not renewed
within 90 days of its expiry.
(j) Except as provided in Rules (g), (h) and (i) above, NCB is to be allowed only when
the vehicle has been insured continuously for a period of 12 months without any
break. |