[dpkbehera]

Reposting this in the right forum...

My scenario is the following i.e.
a) My old car insurance is getting expired on 2nd October.
b)I will be exchanging the old car with the new car in the 4th week of october. The ownership change may take 2-3 weeks and hence may actually happen by 2nd week of November.
c)Both the insurance providers are different.

From the discussion in the previous threads, it seems that i have the following options i.e.
a)I should apply for NCB reservation letter with my insurance provider after expiry of insurance. I can also parallely start a new TP only insurance/ Normal insurance on my old car with the same/different provider at 0% NCB.I wil use the NCB reservation letter at the time of applying for insurance for the new car.

b)Renew the Old Car Insurance.Apply for insurance for the new car with a different provider at 0% NCB. Submit RC copy with updated ownership details. Cancel Existing car insurance policy and get NCB retention letter.Submit the NCB retention letter to the new car insurance provider and get a refund.

I have the following queries i.e.
a) Are both the options correct.
b) Which Option would be better in my case.
c)I assume it will be good to renew the insurance. Should i go for a TP only or Normal insurance. What will be the difference from the perspective of ownership change and charges.
d) NCB reservation letter / NCB certificate is the same?
e)NCB reservation letter / NCB certificate will only be provided when RC copy with updated ownership details submitted or on expiry parallely start a new TP only insurance/ Normal insurance on my old car with the same provider at 0% NCB
f)It is better to get a hard copy of NCB retention letter/NCB certificate.
g)Any other suggestions.

[itwasntme]

Hi, I had followed option a simply because getting the NCB letter was the crucial point for me. I was more comfortable saving the premium upfront than to run around for a refund later. Sales guys are notorious for not delivering on their verbal promises once the new car has been sold!

Put your old car onto TP only from any PSU insurer. Mind you depending on your old car, it CAN cost a packet due to drastic rise in premiums and introduction of slab system. Concurrently, get the NCB letter out and use it upfront!

In option b, you have to wait for RTO transfer to take place etc etc which is dicey and sometimes can simply stall due to some mundane admin issue. Avoid.

HDFC Ergo emailed me a signed scanned NCB letter which was accepted by Bajaj Allianz initially and I later followed up with the hard copy.

Hope this helps, keep us posted!

[dpkbehera]

Originally Posted by itwasntme

Concurrently, get the NCB letter out and use it upfront!

Thanks for the information. Basically i would need to tell the existing provider that i will not be renewing my insurance with them and need a NCB certificate.
Can i do this now or on expiry of the insurance.

[itwasntme]

If I understand correctly, you can intimate them formally of your request but they will process only AFTER your term expires just in case you have a claim on the last day.

Please do let them know as they will also need a formal request from you.

[ghodlur]

Originally Posted by dpkbehera

g)Any other suggestions.

Here's what I would suggest:
1) Renew the Insurance on old car, buy a TPL insurance only. Apply for NCB certificate. Pls note since the car is not yet sold, the relevant NCB is stamped by the Insurance co on the application, hence no certificate.
2) When buying new car insurance, use the NCB which is till valid.
3) When applying for transfer of car ownership, submit one set of Form 29,30 documents to the old car insurance co and get the NCB certificate so that this can be provided to the new car Insurer in case required. When transferring ownership do the Insurance ownership transfer too parallelly.

[kalyan_hyd]

Originally Posted by dpkbehera

Reposting this in the right forum...

I have the following queries i.e.
a) Are both the options correct.
b) Which Option would be better in my case.
c)I assume it will be good to renew the insurance. Should i go for a TP only or Normal insurance. What will be the difference from the perspective of ownership change and charges.
d) NCB reservation letter / NCB certificate is the same?
e)NCB reservation letter / NCB certificate will only be provided when RC copy with updated ownership details submitted or on expiry parallely start a new TP only insurance/ Normal insurance on my old car with the same provider at 0% NCB
f)It is better to get a hard copy of NCB retention letter/NCB certificate.
g)Any other suggestions.

Sir,

My replies.
a. Yes, both options seem to be correct. Minor changes might happen based on the Insurance provider.
b. As the others mentioned above, I would prefer getting an upfront discount on the new car insurance based on the NCB savings than depend on the refund later.
c. I had a 50% NCB on my Honda City before I cancelled the old policy, I got the NCB reservation letter and got a comprehensive insurance on the car with 0% NCB. Based on the current IDV, I paid Rs 8500/. as a premium amount with 0% NCB. So, if and when I sell the car, the next owner might not need to shell more than a nominal amount of money to get the full benefits of this policy. Whereas, if I had taken a policy with the NCB discount, they would have recovered the balance in-case the next owner does not have a good NCB discount in his name.
d. Well, both should entitle you to NCB discount in the next policy. Some providers issue the letter while the others the certificate. In my case Bajaj Allianz issued the letter which was stamped and signed by the authorities in the Hyderabad office that I visited. It took them around 30 mins to generate the same once I got my old policy cancelled. I am guessing in case of NCB certificate, it needs to be sent from the Head Office of the provider and it might thus take about a week's time to arrive.
e. Provider to provider, you might get to hear different things. How I understood it was something like this. Once the policy on a car from the current provider ends or you cancel it manually(like me), you are entitled to an NCB letter/ certificate from them in your name valid for 3 years from the date is issuance. In my case, both cars are in my name so there is no updation of RC occurring ever.
f. You will need the hard copy as only one is issued and you can only use it once. You will need to submit this to the Insurer in original to avail the NCB discount. Otherwise, people with more than one car in their name, like me, can misuse the NCB reservation letter to get the discount on both of their cars.
g. I think the best thing is to discuss with your current provider on the process. Be very clear upfront on all details including the one about not continuing with them for the next policy. They might cause some unnecessary delay in generating the NCB letter, etc but at the end of the day, have to issue one by law.

--Kalyan

[itwasntme]

Originally Posted by kalyan_hyd

As the others mentioned above, I would prefer getting an upfront discount on the new car insurance based on the NCB savings than depend on the refund later.

--Kalyan

Kalyan, I fully agree. Getting it upfront is much safer than running around after the showroom sales advisers, their insurance team plus the insurer is always fraught with risk.

In my opinion, there is many a slip between the cup and the lip. Better to get it upfront and pay only the net amount after applying the NCB.

[dpkbehera]

Thanks kalyan_hyd,ghodlur,itwasntme

Just to confirm.. It is better to go for a TP insurance with 0% NCB as the gap between expiry of insurance of old car and actual exchange with the dealer would be maximum
20 days. However the change of ownership may take time depending on how the dealer manages it.

The NCB letter which i get on expiry of insurance of the old car is enough for getting a discounted insurance on the new car.

I need not be worried about the time taken for change in ownership of my old car as i would be using the NCB for insurance of my new car. Also i would not need to give the documents regarding the change of ownership to any provider.

Also what happens to the TP insurance incase of change of ownership. It would need to be transferred to the new owner.

[itwasntme]

Originally Posted by dpkbehera

Also what happens to the TP insurance incase of change of ownership. It would need to be transferred to the new owner.

You are right on all counts. Further the TP insurance will need to be changed to the new owner's name by paying the statutory IRDA mandated fees and accompanied by a photocopy of the RTC transfer proof (new smartcard/RC book).

In my experience, most private insurers refuse to provide TP only policy because of the meagre margin - albeit any PSU insure will gladly give it after a quick inspection of the car.

[dpkbehera]

An Odd case :
I have a old car with a 45% NCB and want to buy a new car while keeping both cars.

In that case i should let the insurance expire on my old car and get the NCB to use for the new car. Also i should insure the old car with a different insurance provider with 0% NCB.

My queries :
a) Can i do this with the same insurance provider. I think not.
b) I should be very particular in insuring the old car with 0% NCB. How does this work? How do the providers keep track of the entire cycle in this particular case?

[dpkbehera]

Originally Posted by dpkbehera

An Odd case :
I have a old car with a 45% NCB and want to buy a new car while keeping both cars.

Had a word with Coverfox..They are insisting that this case in not valid. I cannot buy comprehensive insurance for my old car and retain the same. It has to be third party insurance only.

[kalyan_hyd]

Originally Posted by dpkbehera

An Odd case :
I have a old car with a 45% NCB and want to buy a new car while keeping both cars.

In that case i should let the insurance expire on my old car and get the NCB to use for the new car. Also i should insure the old car with a different insurance provider with 0% NCB.

My queries :
a) Can i do this with the same insurance provider. I think not.
b) I should be very particular in insuring the old car with 0% NCB. How does this work? How do the providers keep track of the entire cycle in this particular case?

a. Yes, you should be able to.
b. The providers do not. At coverfox.com, you get 50% NCB if you claim you had 45% or 50% on your last policy even if you did not have it.
The onus is on us to prove to the insurance provider if they insist at the time of the claim. I am of the opinion that all insurers share a common database with the IRDA and they can get these details from there on the event of a claim. This is just hear-say or my hunch, someone from the insurance background can clarify about the same.

Originally Posted by dpkbehera

Had a word with Coverfox..They are insisting that this case in not valid. I cannot buy comprehensive insurance for my old car and retain the same. It has to be third party insurance only.

Friend,

I suggest matters like this be handled in-person at an Insurance Provider's office than via Coverfox(nothing against them but I believe the insurers are at better position to understand the need). I own two cars, Honda City(since 2009) on which I accumulated NCB of 50%. And I recently purchased a used BMW X1.

1. You do not have to wait till the insurance on the first car(in my case Honda City) expires to get the NCB (reservation/retention/certificate) letter. While my old policy with Bajaj Allianz was valid until Dec 16, 2015, I voluntarily cancelled it with a written request as on Sep 11th at the local Bajaj Allianz office. The downside being, I did not get any refund since the lapsed period(Sep 11 - Dec 16, 2015)) was less than 90 days. So, effectively, my Honda City did not have coverage since Sep 11th.

2. I got the NCB letter immediately on my name valid for 3 years from Sep 11, 2015.

3. I renewed the BMW insurance with Bajaj Allianz using the NCB letter thus benefiting from the same on Sep 14th.

4. I then renewed the insurance on my Honda City, since there was a gap in the old policy expiring(on the day it for cancelled) and the new one, I had to go for the inspection of the car. The insurer, in my case Bajaj Allianz, sent their surveyor who spent 10 mins time on my car. Taking pictures, etc. I issued him a cheque for the premium payment and the policy was delivered on email within 3 days. The policy was effective Sep 14th.

[dpkbehera]

Originally Posted by kalyan_hyd

Friend,

I suggest matters like this be handled in-person at an Insurance Provider's office than via Coverfox(nothing against them but I believe the insurers are at better position to understand the need). I own two cars, Honda City(since 2009) on which I accumulated NCB of 50%. And I recently purchased a used BMW X1.

1. You do not have to wait till the insurance on the first car(in my case Honda City) expires to get the NCB (reservation/retention/certificate) letter. While my old policy with Bajaj Allianz was valid until Dec 16, 2015, I voluntarily cancelled it with a written request as on Sep 11th at the local Bajaj Allianz office. The downside being, I did not get any refund since the lapsed period(Sep 11 - Dec 16, 2015)) was less than 90 days. So, effectively, my Honda City did not have coverage since Sep 11th.

2. I got the NCB letter immediately on my name valid for 3 years from Sep 11, 2015.

3. I renewed the BMW insurance with Bajaj Allianz using the NCB letter thus benefiting from the same on Sep 14th.

4. I then renewed the insurance on my Honda City, since there was a gap in the old policy expiring(on the day it for cancelled) and the new one, I had to go for the inspection of the car. The insurer, in my case Bajaj Allianz, sent their surveyor who spent 10 mins time on my car. Taking pictures, etc. I issued him a cheque for the premium payment and the policy was delivered on email within 3 days. The policy was effective Sep 14th.

Thanks a Ton..This is excellent information.

[kalyan_hyd]

Originally Posted by dpkbehera

Thanks a Ton..This is excellent information.

My pleasure. Even if your provider says you cannot have two cars with comprehensive coverage in the same owners name. The following is nothing illegal and something that none of the providers should normally refuse:

1. Cancel the policy on the old car(say Car A). And get the NCB letter. Please note that, in certain cases like Bajaj Allianz, the cancellation was effective immediately so you will lose coverage on Car A immediately. I grounded Honda City for the period between Sep 11th and Sep 15th and did not even take it out of my building's covered parking lot. Not denying that there's a bit of risk there, things can happen in the covered lot too.

2. Use the NCB letter to get Insurance on a new car(say Car B). And this does not mean that you cannot haggle with the providers. I sent a few quotes I generated on coverfox as a reference for my provider to match them.

3. Renew Car A's insurance without NCB with any provider. Sticking to one in both the cases saves time and effort.

[null]

I have sold my car now. I understand that the car need to be registered in the new party's name & only then we can apply for insurance transfer along with a request for NCB Retention Letter.

Queries:
1. Is it possible to ask for NCB retention letter without waiting for registration transfer complete (takes 2-3 weeks+ I hear) using the delivery note signed by the buyer? Can he apply for insurance transfer separately later?
2. What happens if the insurance expires in the meanwhile during transfer period? - i.e., RTO formalities get over only by end of October, but insurance expires in the middle of October. What happens to the NCB Retention letter?

Another query:
What insurance do we have when we are driving a car on temporary registration plates? None I believe. Right?