If you’ve ever purchased an insurance policy before, we’re sure you’ve come across the term NCB or No Claim Bonus. Essentially, an NCB is a perk that your insurance provider offers you if you haven’t made a single claim through the policy period/ coverage year. The way you can enjoy this benefit is through a discount on your premium for the following insurance year. Sounds pretty good, doesn’t it?
What makes the NCB even better is the fact that for every consecutive claim-free year, your overall premium discount may increase. But, what happens when you purchase a new car and a new policy? Do all those years of zero claims and discounts go out the window? In all honesty, they don’t. As long as you remember to transfer your NCB to your new ride, you don’t have to worry about losing out on your no-claim bonus!
Transferring Your NCB to Your New Car
Transferring your NCB from your old policy to your new car and new policy is actually really simple. All you have to do is follow these steps:
- Request a letter from your existing insurer for the transfer of your NCB to the new insurer.
- Submit Form 29 and Form 30, which is a notice stating the transfer of ownership of the car and an application for transferring your NCB to the new car.
- The insurer would then be able to issue an NCB certificate with a three-year validity.
- Submit this to your new insurer.
- In case you decide to switch to a different insurer at the time of policy renewal for your existing car, ask your current insurer to provide you with the previous year’s policy document or renewal notice. This mentions the NCB that you are eligible for.
Important Things to Keep in Mind
When you’re getting the NCB transferred, you need to be aware of the following things:
- Your NCB will be given to you only once you have completed the policy term of 12 months without any claims.
- The NCB retention letter is valid for 3 years from the date of sale of your car.
- A sale or transfer to a spouse or family member is considered valid for your NCB transfer.
- You can apply for an NCB retention letter within 90 days from the date of selling your car.
So, the next time you purchase a car or switch your insurance provider, you don’t have to worry about losing out on your NCB. Simply fill up the requisite paperwork and you may continue to enjoy discounted premiums, as long as you don’t make any claims.