Car Insurance is taken in order to seek protection for a car from instances that cannot be avoided. It acts as a personal arsenal that provides assistance in case of accidental losses, theft, and any other liabilities. In addition to this, there are other interesting features that make a car insurance policy more effective. One of them is the No Claim Bonus on Car Insurance.
No Claim Bonus (NCB) refers to a discount that is offered by the insurer to the insured. The concession is offered when the insured doesn’t make any claim on the Own Insurance Policy premium during its entire tenure. The discount can be applied during the renewal of the policy in the subsequent year.
There are multiple benefits that NCB offers to car owners under a car insurance policy. Let’s have a look.
With NCB a policyholder can receive a minimum discount of 20% and a maximum of 50% discount on the car insurance premium. For every claim-free year, the policyholder gets to avail of the NCB discount. This particular discount can help to lower the Own Damage premium amount that the policyholder is supposed to pay at the time of the insurance renewal.
One of the biggest advantages offered by NCB is that it’s granted to the car owner and not the car. This allows the policyholder the freedom to either sell the insured car or purchase a new one without the worry of losing the NCB. It stays with the policyholder as long as the individual renews the car policy.
In a situation when the policyholder decides to change his/her car, an NCB can be conveniently transferred to the other car. Furthermore, the policy can also be transferred from one insurance company to the other in a case where the car owner decides to purchase insurance from any other company.
The transfer is an easy process however it may vary depending on whether the car owner purchases the new car insurance online, offline or via an agent. The process is as follows:
Online: The car owner is required to update the new insurance company about the NCB, the previous insurance company details, and the old policy number.
Offline/Agent: The following steps are required to be followed:
Point to Note: NCB can only be availed via an Own damage cover and not through car insurance that involves only third-party cover. It’s also not applicable to any other add-on except NCB Protector.
Now that you’re aware of the No Claim Bonus on Car Insurance, it’s time for you to spread the word and explain its benefits.
Are you looking for a new insurance policy or a policy renewal? Reach out to us and let us assist you.