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Old 3rd March 2024, 16:14   #5641
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Re: Automobile Insurance Queries? Ask me

Quote:
Originally Posted by abhi3284 View Post
Thank you for responding to my queries ghodlur. Have 1 more query...While talking to my Old Car Insurance Company 'HDFC Ergo' regarding NCB Letter, the person at the other end requested to provide a Cancel Cheque and stated they will be refunding the NCB Amount to me. Is this the correct approach? As per my understanding, they should be providing me with a NCB Transfer letter, that I need to provide to the New Insurance Company, correct?
You have to ask them for NCB transfer certificate, not a refund of NCB. They do not need a cancel cheque for transfer certificate. In fact, in order to have the NCB transfer certificate issued, HDFC Ergo may ask you to pay the NCB amount applied on the old policy pro rated for the remaining days on the policy. This is because you are effectively withdrawing the NCB deduction from the old car and applying to the new car. So the residual amount from the NCB savings has to refunded to the insurance company.

Quote:
Originally Posted by abhi3284 View Post
As an illustration, the OD Part of my Old Car Insurance is only 1000/-. So, if they refund me 50% NCB, it will only be 500/-. Whereas, the OD Component of my New Car Insurance is 50000/-. So, by showing the 50% NCB Transfer letter to the New Insurance Company, I should be getting a benefit of 25000/-. Is my understanding and calculations correct on this?
That is correct, if you are able to transfer the insurance to the new company. Bust just a clarification. Have you spoken to Bajaj Allianz and have they agreed to refund the excess OD amount based on a NCB transfer certificate? Usually they have to be informed about it at the time of policy insurance, though not strictly necessary.

As an example, I recently transferred NCB of 25% from a car that I sold (Renault Duster) to a new car (Kodiaq). The OD component on the Duster was only 3,500, so the NCB applied in my old policy was around 900. I paid ~650 based on the residual number of days of the old policy, to transfer the NCB to the new policy. Since the OD component on the new policy was ~40,000, I got a refund of Rs.10,000 on the new policy. In my case, the old and new insurance were both with Royal Sundaram, maybe that helped the process somewhat.
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Old 4th March 2024, 08:38   #5642
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Re: Automobile Insurance Queries? Ask me

Quote:
Originally Posted by abhi3284 View Post
Thank you for responding to my queries ghodlur. Have 1 more query...While talking to my Old Car Insurance Company 'HDFC Ergo' regarding NCB Letter, the person at the other end requested to provide a Cancel Cheque and stated they will be refunding the NCB Amount to me. Is this the correct approach? As per my understanding, they should be providing me with a NCB Transfer letter, that I need to provide to the New Insurance Company, correct?

As an illustration, the OD Part of my Old Car Insurance is only 1000/-. So, if they refund me 50% NCB, it will only be 500/-. Whereas, the OD Component of my New Car Insurance is 50000/-. So, by showing the 50% NCB Transfer letter to the New Insurance Company, I should be getting a benefit of 25000/-. Is my understanding and calculations correct on this?
The Cancel cheque request from HDFC is for transferring the NCB refund amount to you in case they don't provide the NCB benefits in the new car Insurance buying process. Also the NCB refund should be equal to the new Insurance NCB equivalent value on OD premium by all means and not related to old insurance OD premium. As I mentioned earlier, ideally HDFC should provide a NCB letter to you so that you can use when buying insurance for new car. The NCB letter does not look at any amount, it only mentions the NCB in %.
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Old 4th March 2024, 10:06   #5643
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Re: Automobile Insurance Queries? Ask me

Quote:
Originally Posted by ghodlur View Post
The Cancel cheque request from HDFC is for transferring the NCB refund amount to you in case they don't provide the NCB benefits in the new car Insurance buying process. Also the NCB refund should be equal to the new Insurance NCB equivalent value on OD premium by all means and not related to old insurance OD premium. As I mentioned earlier, ideally HDFC should provide a NCB letter to you so that you can use when buying insurance for new car. The NCB letter does not look at any amount, it only mentions the NCB in %.
Quote:
Originally Posted by reverse_gear View Post
You have to ask them for NCB transfer certificate, not a refund of NCB. They do not need a cancel cheque for transfer certificate. In fact, in order to have the NCB transfer certificate issued, HDFC Ergo may ask you to pay the NCB amount applied on the old policy pro rated for the remaining days on the policy. This is because you are effectively withdrawing the NCB deduction from the old car and applying to the new car. So the residual amount from the NCB savings has to refunded to the insurance company.

That is correct, if you are able to transfer the insurance to the new company. Bust just a clarification. Have you spoken to Bajaj Allianz and have they agreed to refund the excess OD amount based on a NCB transfer certificate? Usually they have to be informed about it at the time of policy insurance, though not strictly necessary.

As an example, I recently transferred NCB of 25% from a car that I sold (Renault Duster) to a new car (Kodiaq). The OD component on the Duster was only 3,500, so the NCB applied in my old policy was around 900. I paid ~650 based on the residual number of days of the old policy, to transfer the NCB to the new policy. Since the OD component on the new policy was ~40,000, I got a refund of Rs.10,000 on the new policy. In my case, the old and new insurance were both with Royal Sundaram, maybe that helped the process somewhat.
Thank you both for your inputs. I will check further with HDFC Ergo.

@reverse_gear, silly question maybe, but in your scenario, post the 25% refund of 10k, did the 25% NCB still apply on your Kodiaq, or NCB starts from 0, as you got the 25% refund?
Also, i have not spoken to Bajaj Allianz yet, as NCB Letter is valid for 3 Yrs., so i can also use it during 1st year renewal.

Thanks,
Abhishek.
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Old 15th March 2024, 18:39   #5644
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Re: Automobile Insurance Queries? Ask me

How does a CIBIL score affect car insurance premium (renewal)?

I was pushing my car dealer for discounts on my insurance renewal, and I was asked for PAN number and date of birth (which I gave after a moment's thought) - for CIBIL score (their term) based discounts.
In hindsight, I think I made a mistake - whats CIBIL score got to do with car insurance quotes since I am not getting any loans?

Last edited by Transmission : 15th March 2024 at 18:46.
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