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What is NCB in Car insurance?

By Finserv MARKETS - Aug 19,2019
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No claim bonus in Car Insurance

Raghu bought a car and maintained it well. He never claimed his car insurance and had often wondered – what is NCB in car insurance? When he approached his insurance company, it gave him a discount on the premium payable on his car insurance in the form of a No Claim Bonus (NCB). When he bought a new car after selling his old one, he continued receiving discounts on the payable premium, thanks to the NCB feature in the insurance policy.

So, what is No Claim Bonus (NCB)?

NCB is the discount offered by the company if you don’t claim your insurance during the policy period. For each year which goes claim free, you can earn a discount ranging from 20-50% on the premium payable.

The Flexible Nature of NCB

One of the critical features which NCB has is that it is associated with the policyholder and not the car. So if you happen to purchase a new vehicle, rest assured, you can retain your NCB. You can also keep your NCB if you switch to another insurance service provider, such as Bajaj Allianz car insurance at the time of paying the premium.

Even though the No claim bonus feature of vehicle insurance is quite handy, Indian drivers do not seem to be too fond of getting insurance for their vehicles. A recent survey by one of the leading general insurance companies found that 7 out of 10 respondents claimed to buy car insurance only after getting caught by the traffic police.

The survey, conducted in Mumbai, Delhi, and Bangalore revealed that around 74% of the respondents had an active insurance policy. The remaining 26% had lapsed out policies and claimed that their insurance company failed to remind them to pay the premium, or they have just forgotten to renew it on time.

Features like NCB make car insurance plans, such as the ones provided by Bajaj Allianz, become an attractive option for buyers. Another great feature available on Finserv MARKETS is that they come with no claim bonus add-on. With no claim bonus add-on, you can keep on claiming discounts in your percentage slab even after you have made a claim.

How To Avail NCB?

Bajaj Allianz car insurance offers you the option to avail NCB on your vehicle insurance if you haven’t already claimed it, or have got the claim bonus add-on on your insurance policy.

In case you have sold your old car and purchased a new one, you have to submit buyer-seller agreement form 29, 30 along with a letter to your insurer requesting for the transfer of NCB. The insurer then issues you and NCB certificate which is valid for three years

In case you are requesting for NCB after you have sold your old car, you will have to provide a copy of the delivery note received for sale of the old car, a copy of the booking form for your new vehicle, along with a copy of insurance policy for the old car. It generally takes a couple of days by the insurance companies after receiving the documents to issue an NCB certificate.

However, one cannot have a person-to-person transfer of your NCB, except when they have a legal heir who inherits the car after their death. If that is the case, then the policy for the vehicle with the applicable NCB will be transferred to the heir. The heir also gets the option to go with other popular insurance companies such as Bajaj car insurance.

Maximum NCB on Car Insurance

The maximum No claim bonus which policyholders can get is up to 50%. Once you have received the 50% discount on your car insurance premiums, the NCB will stop increasing. However, some exceptions stand. For purchasers who have renewed their policies between July 1, 2002, and June 30, 2003, and have availed an NCB of 55% or 65% from the older tariff law existing before July 1 2002, can carry forward their NCB policy with a higher rate until they make a claim. After such claim is made, the NCB will be reduced to zero.

Having an NCB discount at the time of policy renewal is excellent. But just in case you meet with an accident during your policy year, you should also have clarity on how to claim car insurance.

How to Claim on Your Bajaj Allianz Car Insurance at Finserv MARKETS?

Claiming on your car insurance has never been simple. Just follow these steps, and you are done!

  1. Register your claim at Finserv MARKETS online
  2. Upload the requested documents
  3. Your claim will be assessed by the insurer
  4. Check claim status online

To Conclude

Hopefully, the critical question of what is NCB in car insurance is answered. As a customer, if you are unsure about what insurance should you opt, then Bajaj Allianz car insurance lets you transfer up to 50% of your existing No Claim Bonus, or NCB from any other insurance provider. It also offers features such as cashless claim settlement at over 4000 preferred garages across the country, aiming to bring to you the high service standards which you deserve for your car.

So, don’t wait. Get Bajaj Allianz Car Insurance with us at Finserv MARKETS, today!

Like No Claim Bonus, zero depreciation car insurance is another useful concept to read about before buying a policy.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522