What Is No Claim Bonus?
NCB or No Claim Bonus is a reward given to car owners by insurance companies if no claims are registered during the duration of the policy. This reward is a discount on your insurance premium that is applicable during your car insurance renewal.
Renewing your car insurance online can give you a range of benefits apart from cost reduction. For even more benefits you can renew your car insurance on Turtlemint to get the swiftest and finest services.
Benefits Of NCB For Vehicle Insurance
As a vehicle owner, you get many benefits from your car insurance policy for the no claim bonus. Here are they-
As a policyholder, you can get at least a 20% discount on your insurance premium with the help of NCB. The NCB discount is awarded to you for every year that does not have any claims. This discount helps you to get a lower premium amount on your car insurance renewal. So, you have to pay a lesser amount in the end.
When you are eligible for receiving the no claim bonus, it signifies your responsibility as a driver and states your car’s healthy condition. Thus, you can earn rewards by not making any claims during the tenure of your policy.
Transmittable to other insurer or new car
The discount that you earn from the no claim bonus is transferable to your new car or other insurers in case you decide to change your car insurance agent. You can enjoy it as long as you keep applying for car insurance renewal.
Stays With Policyholders
A big advantage of the no claim bonus is that it is not for the car but surely for the policyholder. So, even if you buy a new car or sell your present car, the no claim bonus remains with you as long as you continue your car insurance renewal. But it can never be given to the new owners of the insured car.
Can NCB Get Terminated?
A no claim bonus can get terminated if the following situations take place –
- Any single claim made during a policy year can lead to no NCB in the following year.
- Failing to renew your insurance policy within ninety days from the date of expiry of the present policy.
How NCB Reduces Premium During Renewal?
As mentioned earlier, NCB acts like a reward system that helps you to decrease your yearly car insurance premium. It ranges from 20% to 50%. You can utilize the discount in your yearly premium.
It all starts with you gaining a 20% NCB discount if you have not made any claims during the first year of your policy. It is followed by another 5% when you don’t make any claim in your second consecutive year too. This reduction can extend up to 50% in your sixth consecutive year. In another way, the better you drive, the more discounts you can earn in the long run!
Documents Needed To Transfer NCB
The following documents are required to be submitted to your insurance company if you want your No Claim Bonus to get transferred to some other insurer –
- Application of transfer
- Copy of transferring old registration certificate or ownership transfer certificate if you have sold your old car
- Buyer-seller agreement
- Photocopies of the car insurance
- Copy of the booking receipt in case of buying a new car
- Copy of delivery note in case of sale of old car
- NCB certificate
The proof of your NCB is usually valid for two years. So, in case any policyholder has stopped driving for some reason, he will lose his NCB. Ultimately, he has to start from scratch to get an insurance policy. So, never postpone your car insurance renewal and try to take the total benefit offered by NCB.