Re: Automobile Insurance Queries? Ask me Quote:
Originally Posted by abhi3284 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 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. |