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Things That You Didnt Know About No Claim Bonus ( Car Insurance )

Whosoever has owned a car or a bike probably knows that No Claim Bonus (or NCB) is discount given to the insured on renewing the car insurance cover provided he/she has not made a claim in the previous year and that the discount is available in slabs of 20% to 50%. However, little is known that –

1. NCB benefit is given on the PERSON and not the VEHICLE – The benefits of NCB is accrued to the person who has insured his/her vehicle and not on the vehicle itself. Ok, So how does it affect me? Well, this means that the person who has insured the vehicle can get NCB benefit if he is replacing his old car with a new one. This also means that if you sell your old vehicle to a different person, the NCB benefit would not transfer to the new owner of the vehicle. The new owner has to pay the difference in NCB amount for the remaining policy period.

2. NCB can be MIGRATED if you change your insurance company – In case you change your insurer, then you can avail NCB benefits from the new insurer. For example, if you had a 20% NCB on the previous policy period, then you can avail higher NCB benefit as per the slab.

3. NCB benefit is NOT lost if there is a break in policy (lapsed policy) – If you forgot to renew your car insurance before the expiry date of the current policy, you can still avail the NCB benefit up to 90 days beyond the expiry date of the last policy.

In today’s context, when there are so many cost-effective online car insurance products available, it is imperative that consumers compare online car insurance including the NCB benefit that they may get from different insurers before buying their car insurance.

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Authored by: BuySmartPolicy
Published date: March 28 2018.

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