Transfer the old vehicle to no-calm-bones new, save 50% in insurance, know the complete process

Last updated:December 01, 2024, 16:57 IST

Insurance policy holders get no claim bonus when they have not filed any kind of claim during the whole year. This benefit is given on on damage (OD) premium.

Vehicle NCB Transfer: If you are thinking of buying a new car and want to take advantage of your old vehicle insurance no claim bonus (NCB), then this news is for you. Insurance policy holders get no claim bonus when they have not filed any kind of claim during the whole year. This benefit is given on on damage (OD) premium and this can lead to a big savings on the new policy.

NCB percentage increases every year
NCB is zero in the first year of taking the policy, but if you do not file a claim, it increases every year. If you do not file a claim for the first year, you get NCB of up to 20 percent. The second year it increases to 25 per cent, 35 per cent, 45 per cent, 45 per cent of the fourth year and the fifth year it reaches maximum 50 per cent. That is, for five years, without any claim, you can get a discount of up to half the price on your on damage premium.

How to transfer no claim bonus?
The biggest advantage of NCB is that it is not connected to the vehicle, but to the policyholder. This means that if you are selling your old car and buying a new car, you can transfer your NCB. However, this applies only in equal category vehicles. That is, if you are buying a new car by selling an old car, then NCB can be transferred. But this will not be transferred from the bike to the car or car to the bike.

NCB will not be transferred on changing the ownership of the vehicle
It is also important to keep in mind that NCB is transferred only in the same situation when the owner of the vehicle is the same person. If the owner of the vehicle changes, NCB cannot be transferred. So whenever you sell your old car and buy a new car, take care of NCB transfer.

How to complete the process?
To transfer NCB, you have to cancel the insurance policy of your old car and get the NCB certificate from the insurance company. This certificate has to be submitted while taking the insurance policy of the new vehicle. This is an easy process, but it requires a little vigilance.