A No Claim Bonus (NCB) is an indicator of how well you keep your car. I love to keep my car in the best of its condition, and I love to drive it safely. Thanks to this, none of my cars have ever been involved in major or even minor accidents. So, this would generally attract an NCB and decrease the insurance amount for me significantly on every subsequent policy. However, recently I was all set to purchase a new car and wanted to sell the old car to the same dealer. But, I was not sure what would happen to my no claim bonus.
Their agent told me that a no claim bonus belongs to a combination of a car and its named owner. So, when you sell your car to someone else, that person cannot take advantage of your no claim bonus. So, if you are buying an old car, know that the old car’s NCB will not apply to you.
The agent explained to me that this was quite possible and that they did have a conditional provision for this. He told me that he needs to go through my old insurance papers to check the details. I promptly shared my old insurance copy with him. In some time, with a smile on his face; he told me that I was eligible to transfer my no claim bonus benefits to my new car.
He politely told me that I had reached the maximum no claim bonus of 50% in my old car. I came to know that I will be getting a good discount because of this. The NCB amount, generally, starts from 20% and increases 5% each year to reach a maximum of 50%. So, the maximum that you can save is 50% of the car insurance amount.
I found out that we mainly need three documents. The first document is the sale deed of the car along with a delivery note. The second document is the new car’s booking form. And, the third document is the old car’s insurance copy or its NCB certificate. Some insurance companies may require these documents in the format of Form 29 and Form 30.
The agent smiled again and said that it will just take a couple of days. He assured me that the entire process will not take much time. So, once you submit complete documents, your new insurance will be in your hands with a good discount.
The NCB really helped me bring down the cost of my insurance significantly. No claim bonus can do wonders for your pocket. NCB starts from 20% and can reach up to 50% of your car’s insurance amount. You not only get its benefits in your current car policy but can also reap its benefits in your second car’s policy. Just remember to ask your motor insurance agent about the ncb transfer when purchasing a new car.