While there is a spike in the prices of the car, the car insurance company offers a unique proposition to reduce the yearly premiums, thanks to No Claim Bonus (NCB). Most policyholders are acquainted with the concept of NCB, but lack of proper understanding creates a subtle difference, leading to disillusionment at the time of policy renewal. In car insurance, No Claim Bonus can be considered as a reward given to the policyholder if only no claim was made in the preceding years.
NCB insurance is like a reward program where a policyholder can earn up to a discount range from 20-50% on the premium payable. It can only be earned if no claim is made during the given period. The No Claim Bonus insurance program is an initiative that is taken to increase the awareness of safe driving. However, one must note that NCB insurance is applicable during the time of insurance renewal. For having a better insight into NCB insurance, you can go through the guide provided below.
One of the salient features of NCB insurance is that its coverage is correlated with the policyholder than the car. The policyholder is entitled to the NCB insurance coverage even if an individual replaces their old car with a new one in case of a change in the car insurance plan. The process of NCB insurance transfer is very simple and doesn't involve a complicated calculation. The only exception to the NCB insurance transfer policy is that it is non-transferable in case of the death of the policyholder.
Calculating a No Claim Bonus insurance is not any big issue. There are a lot of car insurance companies that offer online access for the calculation of the No Claim Bonus. While calculating the NCB insurance, the following things should be taken into consideration:
The discount range for the calculation of the NCB car insurance is given below:
|Claim Free Years
|No Claim Bonus discounts
|After 1st Claim Free Year
|After 2nd Claim Free Year
|After 3rd Claim Free Year
|After 4th Claim Free Year
|After 5th Claim Free Year
The process of transferring the NCB insurance policy varies depending upon whether you are opting to transfer it via offline mode or via online mode. In case of buying your car insurance policy via offline mode, the policyholder needs to submit the buyer-seller agreement along with a letter requesting the transfer of NCB insurance.
However, if you plan to buy a new car insurance plan in an online mode, then the process is hassle-free and involves less paperwork. The policyholder needs to provide the right NCB with the old policy number. The insurance company will take care of the rest of the process.
In order to transfer the NCB insurance from one insurance plan to another, the following documents are required which are given below:
Once you submit the required documents properly, the no claim bonus will get transferred to your new car. Moreover, the customer can avail the discount benefit based on the existing NCB certificate on the insurance premium for the new car.
Among some of the attractive car insurance, NCB is an exceptional feature that helps in the reduction of premium. Having an NCB insurance is always positive for the policyholder, but one must be aware of the fact that the maximum claim discount is 50%. Once the individual has used this facility, they have to wait until the next renewal period. Moreover, always be careful during choosing the NCB insurance plan to get proper coverage facilities.