No Claim Bonus

[Rahul]

Could you please tell me what is NCB and how NCB (No Claim Bonus) is Calculated?

[Investorboy]

If you do not have any insurance claim/s, you get NCB (No Claim Bonus) at the rates mentioned below (based on no of years of No claim) - the premium is accordingly reduced. The NCB increases each year (as indicated below) till no claim/s is/are there -

The rates of the NCBs (No Claim Bonus) -

20% on 1st renewal.
25% on 2nd renewal.
35% on 3rd renewal.
45% on 4th renewal.
50% on 5th & subsequent renewals.


Important Note - That the NCB turns 0% on insurance claim & restarts afresh (as mentioned above) from the subsequent renewal.

If you do not have any insurance claim/s, you get NCB (No Claim Bonus) at the rates mentioned above - the premium is suitably reduced. The NCB increases each year (indicated above) till no claim/s is/are there

Example - You have no claims during the first 3 years, you have earned NCB of 35% - but before the 4th renewal if you have claims, the NCB will be lost (become 0%). If you thereafter have no claims in the 4th year, you get NCB at the time of 5th renewal at 20% (starts afresh from the lowest) ...and so on.

[rohit]

I have bought car insurance from TATA - AIG and in the second year I bought insurance for my vehicle from IFFCO-TOKIO. My question is -

1.How to know how much of no claim bonus I have accrued?

2.Can I change my inusrance with various companies every year and still claim no claim bonus? :confused:

[Investorboy]

Answers to your questions -

1) NCB is mentioned in the Policy.You can submit the Renewal notice sent by the First Insurance Company, before the renewal with the second company (IFFCO-TOKIO in this case)

2) Yes, even if you change the insurance provider every year (or at whatever periodicity), NCB gets transferred/carried forward.

[Rahul]

I am planning to sell my old Maruti 800 car , which is in my father's name and am buying a new car in my name. I have a 50% NCB as mentioned in the Insurance policy of my old car, which is valid upto 31-03-09. If I handover the Insurance policy along with RC book to buyer of my old car, can I still enjoy the NCB benefit on new car in my name? My new car will be delivered to me with in 2 months. What other papers I need to sought from the buyer so that I do not face in concequencies after a sale date?

[Investorboy]

You need to handover the Insurance Policy to the buyer, of course - along with the RC Book & TTO form duly signed/discharged in favour of the buyer. That will not deprive you of the NCB transfer to your new car. But in your case you can get the NCB only if you buy new car in the name of your father, not in your case.

[Rajeev S]

Do we get any certificate that I have not claimed anything in the previous year?

[Investorboy]

No certificate is issued for NCB or No Claims lodged. You can check this in the Renewal notice sent by the Insurance Company, before the renewal. And the position is also indicated in the Policy (at the time of renewal).

[Rajeev S]

I want to sell my Wagon R, which carries a NCB of 50%, and transfer the NCB to my new car. Do I need to get a fresh insurance for the old car or the same policy without NCB remains in force. Will the fresh policy be treated as new ploicy or a renewal?

[Investorboy]

The NCB (No Claim Bonus) will not be transferred to the buyer of your old car, as it is available to the person/you and not the car. Therefore, it will be carried forward to your new car's insurance. This is available even if the insurance company changes. In any case, the new car should be bought/insured within 90 Days from the date of selling/transfering the old car.

When your car is sold/transferred, the insurance will also be transferred in the buyer's name. Once this is done, you are entitled to obtain 'NCB certificate' from the insurance company. Obtain the same & submit it to the insurance company (same or other) that is insuring your new car. The insurance company will extend that NCB to you for the new car insurance.

[Rajeev S]

Does the buyer of my old car have to buy a new unsurance or the same policy continues once I transfer NCB to my new car as I will sell my old car immediately after buying my new car?

[Investorboy]

The same insurance without NCB benefit will continue & will be renewed suitably on due date.

[VarunD]

Is they make and model of the car to be same to get NCB transfered to new car? Ex- I have old car Maruti and enjoying NCB of 45% and now I sell this car and buy a new car Honda City. Would the NCB is transfered to new Honda City car

[CopyCat]

Is they make and model of the car to be same to get NCB transfered to new car? Ex- I have old car Maruti and enjoying NCB of 45% and now I sell this car and buy a new car Honda City. Would the NCB is transfered to new Honda City car
Make and model has no impact on the NCB. It is given to the insured for good driving skills and claim free years.

[Mrinal]

Thanks all for good info on NCB.

I have a query that if I would not buy new car immediately and postpone my new car purchase for some time (say 3 months) after selling my old vehicle.
Would I be able to retain my NCB till the purchase of the new vehicle ?

[Master]

Thanks all for good info on NCB.

I have a query that if I would not buy new car immediately and postpone my new car purchase for some time (say 3 months) after selling my old vehicle.
Would I be able to retain my NCB till the purchase of the new vehicle ?
Yes you would be able to retain NCB till next 2 years from the date, you have sold your vehicle. Plus you would not have been bought any other vehicle.

[Vinayak]

I want to change my insurance company. Do I need to send proof of my No Claims Discount to new company or they will take it from my old insurance company?

[Policy_expert]

As per my understanding its the duty of the new insurance company to check the NCB status with the old insurance company. But after privatisation, the pvt. companies normaly put this on to the proposer, to get the NCB letter from the previous insurance company.

[Imran]

Hi Guys,
Last month, I have renewed my Santro with TATA-AIG and they didn't give me NCB at the time of renewal. At that time, they told me that they will check NCB with my last insurer and refund me the extra amount if I would have the NCB (Old Insurer - New India). It's now almost three months, and I have called the branch and customer care of TATA-AIG, but still I am struggling to get the NCB refund. Pls guide me what should I do now?
Regards,
Imran

[CONFUSED]

Write a letter to customer care of TATA-AIG. If they won't credit the discount. Get in touch with IRDA to take action against them.

Jaago Grahak Jaago. :peace:

[amit_kumar09]

Complaints against Non-life insurance companies:
Private Insurers:
Shri K.Srinivas, Asst. Director,
Insurance Regulatory and Development Authority
Parishrama Bhawanam, 5-9-58/B, Basheerbagh, Hyderabad – 500004.
(040) 23240034
e-mail ids: nonlifecomplaints.pvt@irda.gov.in

Public Sector Insurers:
Mr.R.Srinivasan, Officer on Special Duty
Insurance Regulatory and Development Authority
Parishrama Bhawanam, 5-9-58/B, Basheerbagh, Hyderabad – 500004.
(040) 23381248
e-mail ids: nonlifecomplaints.psu@irda.gov.in

Source - irdaindia.org

[Mrinal]

One strange thing happened with me. I was just checking my old insurance papers for NCB. And I found out that in insurance papers of my 4 year old car is showing 20% and I have not claimed anything till date on this car. So I have lost NCB for these years (due to my looking into the insurance papers :mad:). Is there any way out to get that NCB Back from next year?

[amit_kumar09]

One strange thing happened with me. I was just checking my old insurance papers for NCB. And I found out that in insurance papers of my 4 year old car is showing 20% and I have not claimed anything till date on this car. So I have lost NCB for these years (due to my looking into the insurance papers :mad:).
This is common problem. The agents and underwriters are so busy that they have limited time to check the document and give credit to the policyholder/proposer. At the same time, it is duty of policyholder/proposer to check that all the info is been put in the policy like address, reg. no., CC, NCB etc.


Is there any way out to get that NCB Back from next year?
Please write to the insurance company with the policy/cover note photocopy mentioning the mistake. Insurance company will make an amendment on the policy. And send you the amendment.

[Mrinal]

Please write to the insurance company with the policy/cover note photocopy mentioning the mistake. Insurance company will make an amendment on the policy. And send you the amendment.
Thanks Amit! Do they charge money for this change?

[amit_kumar09]

It depend upon the amendment. In your case - You will get discount in premium. Means Refund.

[Harish Rawat]

I have bought a second hand vehicle in June’2009 and the insurance, I have had transferred in July’2009. Now I have received renewal notice without a 20% NCB. But as per info provided above, the insurance company has to give me 20% NCB. Should I call the insurance company and discuss or is there any rule I am missing in?

[amit_kumar09]

The insurance company is right, you need to complete one complete year to be eligible for NCB. But in your case, as you have bought a second hand car and continued with the same insurance, on renewal date the one year is not completed, so you would not be eligible for NCB.

[Harish Rawat]

The insurance company is right, you need to complete one complete year to be eligible for NCB. But in your case, as you have bought a second hand car and continued with the same insurance, on renewal date the one year is not completed, so you would not be eligible for NCB.
I could not get you here that one year not completed, could you please tell me with example. If you want more details from my side, please let me know.

[amit_kumar09]

I could not get you here that one year not completed, could you please tell me with example. If you want more details from my side, please let me know.
Harish – As per the dates provided by you above, You have bought second hand car in June’2009 and got the same insurance transferred in your name in July’2009. Now you have received renewal letter, so just assuming that the renewal date is somewhere near March’2010 end week or First week of April’2010. So the total period you have driven the car with old insurance is (June’2009 to March’2010) 10 months. 2 months short of 1 year. As per NCB rule, you need to complete one year with the insurer without claim. Hope now it is clear to you.

[lokeshz]

I have a different case, my car went missing in the on Jan 31'2011 and still not traced by police. Now I had received the theft claim amount from the insurance company. I was enjoying 50% NCB in my old policy. Now will I get NCB in my new car policy, if I transfer it, as it is more than 90 days?

[Madhura]

I have a different case, my car went missing in the on Jan 31'2011 and still not traced by police. Now I had received the theft claim amount from the insurance company. I was enjoying 50% NCB in my old policy. Now will I get NCB in my new car policy, if I transfer it, as it is more than 90 days?After claim the NCB will reset to '0', so you won't get NCB benefit in new policy.

[lokeshz]

After claim the NCB will reset to '0', so you won't get NCB benefit in new policy. Why it will reset to '0'? It will go up and down in ladder system, so after one claim, it will go down to 40% next year onward. Please correct me if I am wrong.

[Madhura]

Why it will reset to '0'? It will go up and down in ladder system, so after one claim, it will go down to 40% next year onward. Please correct me if I am wrong. I am afraid that you are talking about the old NCB Method which is no more there.

[lokeshz]

Ohh so... This is a news to me. When this has had happened?

[PolicyWala]

The sunset clause in year 2002. Read the complete clause for your info -
Sunset Clause: If at the renewal falling due any time between 1st July 2002 and 30th June 2003, both days inclusive, (after completion of the full policy period of 12 months) an insured becomes entitled to an NCB of 55% or 65% in terms of the Tariff prevailing prior to 1st July 2002, the entitlement of such higher percentage of NCB will remain protected for all subsequent renewals till a claim arises under the policy, in which case the NCB will revert to 'Nil' at the next renewal.

The percentage of applicable NCB is to be computed on the Own Damage premium required for renewal of the insurance after deducting any rebate in respect of "Vehicle Laid Up" under the policy.

[Aakash]

Will I get NCB at renewal, if I had lodged a claim but the claim is neither approved or rejected by the insurer?

[Minal]

If you have raised a claim against a policy, you won't get NCB (it's No Claim Bonus).

[Aakash]

If you have raised a claim against a policy, you won't get NCB (it's No Claim Bonus).
But the claim is neither accepted or rejected, if later on the insurance company reject the claim would I get an NCB refund back?

[Rahul]

It's a bit subjective issue when you have lodged a claim, some insurer take it as a claim is registered, whether not accepted OR Rejected later on. But NCB is gone, when you lodge a claim.

[Expert]

It's a bit subjective issue when you have lodged a claim, some insurer take it as a claim is registered, whether not accepted OR Rejected later on. But NCB is gone, when you lodge a claim.I doubt this the NCB would be gone only, when the claim is accepted by the insurance company. Mear lodging the claim won't be the case of denying the NCB.

[Madhura]

I agree with Expert here the claim till the point is accepted, should not have to affect the NCB. Insured may have lodged a claim for the coverage, which are not even covered under the policy. But above are my personal views and I have no proof for this.

[Absar]

I was reading somewhere that if you claim only wind screen damage claim, you NCB would not be impacted with the claims. Means that it will be treated like you had not made any claim. Is it so?

[Master]

I was reading somewhere that if you claim only wind screen damage claim, you NCB would not be impacted with the claims. Means that it will be treated like you had not made any claim. Is it so? Yes, you are right.

[ReVoLuTiOn]

I have two cars - one Honda City (2007) and another one - Hyundai Santro (2005). Both the above cars are insured with ICICI Lombard. Honda City is covered with comprehensive cover and Hyundai Santro is third party cover, because it’s little old. Last year for Hyundai Santro, I had changed insurance cover from comprehensive to third party, at that time I was enjoying the 45% NCB. As I had moved to third party, insurance company not provided me the NCB. Now I have moved to new city and the risk is more so again I wanted to go for comprehensive cover for my Hyundai Santro, but insurer is saying that you will have to start as fresh for NCB. Is it so?

[Vivek]

I have two cars - one Honda City (2007) and another one - Hyundai Santro (2005). Both the above cars are insured with ICICI Lombard. Honda City is covered with comprehensive cover and Hyundai Santro is third party cover, because it’s little old. Last year for Hyundai Santro, I had changed insurance cover from comprehensive to third party, at that time I was enjoying the 45% NCB. As I had moved to third party, insurance company not provided me the NCB. Now I have moved to new city and the risk is more so again I wanted to go for comprehensive cover for my Hyundai Santro, but insurer is saying that you will have to start as fresh for NCB. Is it so? Your insurer is right!
First, The NCB is transferred only when the car is insured within 90 Days from the date of buying/transferring the old car.
Second, You would be able to retain NCB till next 2 years from the date, you have sold your vehicle. Plus you would not have been bought any other vehicle.
In your case you had change the coverage to third party, in which case the NCB is not allowed, so you lost your earned NCB.

[Sonali]

I have recently bought a second hand car and I need to renew the car insurance policy. The previous owner has enjoyed the benefits of No claim for the past 5 years. However, When I am trying to renew the policy, I am not getting the benefits of No claim.

Please advice me on the same.

[PolicyWala]

The NCB is for the owner/driver; it cannot be transferred. You need to build your NCB from scratch.

[Vinayak]

I have recently bought a second hand car and I need to renew the car insurance policy. The previous owner has enjoyed the benefits of No claim for the past 5 years. However, When I am trying to renew the policy, I am not getting the benefits of No claim.

Please advice me on the same.
The NCB (No Claim Bonus) will not be transferred to the buyer of your old car, as it is available to the person/you and not the car.

[Madhura]

I was reading an article on the internet, came across a new term called Protected NCB.
1- What is Protected NCB?
2- Is it available in India?
3- If yes, how?

[PolicyWala]

I was reading an article on the internet, came across a new term called Protected NCB.
1- What is Protected NCB?
Protected No Claims Bonus (PNCB) is an addition to a policy where protection is added to a customer’s No Claims Bonus to limit it being affected following an accident should they be found to be at fault. Customers can pay to protect it. This ensures that if they have an accident the NCB remains intact.



2- Is it available in India?
3- If yes, how?
It's not available in India. Normal practice in UK.

[Madhura]

Protected No Claims Bonus (PNCB) is an addition to a policy where protection is added to a customer’s No Claims Bonus to limit it being affected following an accident should they be found to be at fault. Customers can pay to protect it. This ensures that if they have an accident the NCB remains intact.
It's not available in India. Normal practice in UK.
But why would someone pay to get the protected NCB?

[alokss]

We have 2009 Maruti Alto, last year we have changed the insurer and agent also mentioned NCB on the policy (we took claim on first policy) and now the car is met with an accident and 80% damaged. Can we pay the NCB amount as premium to insurance company and get the claim? It's not our fault the agent mentioned no claim to reduce the premium.

[LastWarrior]

We have 2009 Maruti Alto, last year we have changed the insurer and agent also mentioned NCB on the policy (we took claim on first policy) and now the car is met with an accident and 80% damaged. Can we pay the NCB amount as premium to insurance company and get the claim? It's not our fault the agent mentioned no claim to reduce the premium. You have not declared correct info at the time of proposal form, so the insurance company will reject your claim.

[Master]

Alokss,

It's duty of the insured to check the proposal form before signing it and later on you can also check the policy that - what you are paying > what you are getting.

[Ansh]

I had 20% NCB from my previous insurer which I had used on the current insurance policy to get some money off. So, if I do not make a claim this year, I will have 25% NCB for the next year's policy. But however, if I make a claim on the current policy, will I have nil NCB or will I still have my previous 20% NCB?

[PolicyWala]

I had 20% NCB from my previous insurer which I had used on the current insurance policy to get some money off. So, if I do not make a claim this year, I will have 25% NCB for the next year's policy. But however, if I make a claim on the current policy, will I have nil NCB or will I still have my previous 20% NCB?
Currently NCB uses sunset clause, means that when ever there is a claim, it will take you to zero level.