Can You Claim NCB In Car Insurance For A New Car?

What Does NCB Mean In Car Insurance?

No Claim Bonus (NCB) is an insurance provider’s concession for having no claims during a specific policy year. This is precisely what NCB means. Additionally, it can be accumulated over several years to receive a premium concession. And because an NCB is transferable to a new vehicle the policyholder purchases, it can be used even when an individual owner changes their vehicle. Claims are subject to terms and conditions set forth under the car insurance policy. *

How Does NCB Function?

The NCB offers a concession on the premium due at policy renewal in cases where no claims are filed. As a result, NCB assists in lowering the cost of annual car insurance. For instance, if a policy offers a 20% NCB for the first claim-free year, you can get a 20% premium concession when your policy is renewed for the following year. Claims are subject to terms and conditions set forth under the car insurance policy.* ##

Here’s how to proceed if you want to use the NCB in car insurance:

Selling The Old Car: This is the most crucial step. The accumulated NCB from the previous vehicle can be transferred to the new vehicle after it is sold to the dealer or another party. Make sure you receive the sale deed and invoice, and learn how to check NCB in car insurance. *

NCB Certificate: As a policyholder, you must inform the insurance provider that your old vehicle has been sold. Following communication, you can ask that the NCB earned on the previous vehicle be applied to the purchase of the new vehicle. Make sure you send in all the policy and vehicle information. *

Documents: Besides the written application, the following papers are needed:

1. A copy of the delivery note for selling the old vehicle

2. A duplicate of the new car reservation form

3. A copy of the old car’s insurance policy

It will take the insurance company 2-3 working days to issue an NCB certificate after receiving the NCB application. Based on this certificate, the insurance company can apply the NCB as a concession on the insurance premium for the new car. *

Here are a few more things to remember now that you know how to use the No Claim Bonus when getting insurance for a new car: *

  • As long as the policyholder is the same, NCB can be moved from one vehicle to another. *
  • At the time of renewal, NCB can be moved from one insurance to another.
  • To facilitate the transfer of NCB, an NCB certificate is required.
  • If a claim is filed during the policy year, NCB expires.
  • If the policy is not renewed within 90 days of the existing policy’s expiration date, NCB expires. *

No Claim Bonus (NCB) is a reward car insurance providers offer for not making any claims during the policy term. While NCB can be transferred from an old car to a new one, it cannot be claimed for a new car directly. However, it is important to consult with your insurance provider to understand the specific terms and conditions regarding NCB eligibility for a new car. Claims are subject to terms and conditions set forth under the car insurance policy.*

* Standard T&C Apply

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.


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