While most policyholders are familiar with the term NCB, they often don’t understand the nuances which lead to confusion during policy renewal. A No Claim Bonus or NCB is an incentive offered by Car Insurers to encourage safe driving. The NCB is provided in the form of a discount on car insurance premium on yearly renewal. NCB can be accumulated over the years and you can secure a discount of up to 50% on your premium. Furthermore, as a car insurance policyholder, here are some facts you must know about NCB:-
1. NCB is Transferrable
One of the most convenient features of the NCB is that it is easily transferable. Even if you exchange your old car for a new one or renew your car insurance plan with another insurance provider, you can transfer the NCB. However, remember to register the new vehicle on the same policyholder’s name. Car insurance policies on Finserv MARKETS give you the benefit of NCB transfer upon policy renewal.
2. NCB Is Subject to Termination
Your no claim bonus can be terminated for two reasons. Firstly, if you make any claim during the policy term, your NCB will be terminated. Secondly, if you fail to renew your policy within 90 days of its expiration, you will lose your NCB. Either one of these reasons can lead to the termination of the NCB.
3. NCB Is Only Available On Renewal
When you buy your first car insurance policy, you won’t be eligible for an NCB except in the case of policy transfer. However, on the first renewal of your policy, you can get an NCB of 20% if you did not make any claims during the past year. And if you continue this claim free record for five consecutive years, you can claim NCB up to a maximum of 50% on your fifth-year renewal.
4. No Claim Bonus Proof Validity
Not many people are aware of the fact that the proof of your no claim bonus is valid only for two years. So those who are not able to offer proof of having a valid policy for two years would have to start the entire NCB process from the beginning.
5. NCB Belongs to You and Not Your Car
An important feature of the NCB is that it is associated with the policyholder and not the vehicle. Hence, you will be able to retain your NCB if you replace your existing car with a new one or if you switch to another insurer at the time of renewal of the policy. Moreover, if you want to sell your car and buy a new one, you can still avail the No Claim Bonus benefit.
At Finserv MARKETS, we urge policyholders to avail the NCB benefit and avoid filing small claims. Doing so will help you save more in the long run. And if you are looking for a car insurance policy with wider coverage and affordable insurance premiums, you can switch to Finserv MARKETS to buy your car insurance online, without losing out on your accumulated NCB benefit.
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