You can transfer the old car No Claim Bonus (NCB) or Discount to a new car by using any of the below two options:
1. If you are selling the car without the insurance, you can surrender the policy and ask insurance company for refund. The insurance company will refund you the premium for remaining period.
2. If you are selling the car and also transferring the insurance, you can ask the new owner to pay the difference (Premium minus NCB) and you will keep the NCB.
Please note that it is possible to transfer NCB without selling the old car, but several insurers insist on ownership transfer.
Documents to get the NCB Retention Letter:
1. Request letter to insurer for Policy Cancellation
2. Original policy copy or Certificate of insurance (or Form 51)
3. Form 29 (Notice of transfer of ownership of the car)
4. Form 30 (application for intimation and transfer of ownership of the car)
5. Photocopy of registration certificate (RC) book with name of the new owner (buyer)
6. Proof of delivery of car to the new owner (Letter or Delivery Note)
* The last four documents (3-6 above) are only required if you are selling your old car.
Upon cancellation, you will receive an NCB retention letter from current insurer. You can use this NCB retention letter to avail NCB on new car’s insurer.
Things to Note
1. You will get NCB only when you have completed the policy term of 12 months without any claims. You won’t get NCB for 10 or 11 months.
2. A sale/transfer to a spouse or family member is considered valid for NCB Transfer.
3. You can apply for a NCB retention letter within 90 days from the date of sale of car.
4. The NCB retention letter is valid for 3 years from the date of sale of car.
5. While buying new car, if you are getting free insurance as part of the deal, don’t use your NCB, use it while renewing car insurance next year (because it is valid for 3 years).
6. Transfer of ownership in comprehensive policies has to be transferred within 14 days from date of transfer failing which no claim will be payable for own damage to the vehicle.