What is a No Claim Bonus (NCB)? The No Claim Bonus in car insurance is a reward offered by insurance providers for not filing a car insurance claim during the policy tenor. This reward is offered in the form of a reduction in the premium during car insurance renewal. This reduction can go up to 50% of the car insurance premium amount! Claiming NCB of Old Car Insurance Policy to Reduce New Car Policy Premium It is important to note that the NCB is rewarded to the car insurance policyholder and not the insurance policy. Hence, you can continue to reap the benefits of the NCB rewards even if you are not associated with a particular insurance provider during policy renewal. Now, let’s take a look at how you can claim the NCB of your old car insurance plan to reduce the premium of your new car insurance policy:
Earn No Claim Bonus on Old Car InsuranceThe easiest way to earn NCB rewards on your old car insurance plan is to drive your car safely and avoid raising any insurance claims for minor repairs/replacement expenses. This will help you secure your NCB rewards.Retain the No Claim Bonus When Buying a New CarThe NCB in car insurance increases every year for 5 consecutive claim-free years, and the maximum reduction you can get on your car insurance premium is 50%. You can continue to avail the 50% reduction from the 6th year until you raise an insurance claim or do not renew the policy for more than 90 days after the policy has expired. When you have accumulated the NCB rewards and wish to purchase a new car, you can easily transfer the No Claim Bonus to the new car’s insurance policy.NCB CertificateIf you wish to claim the NCB from your old car insurance policy to a new one, you will need to get the NCB certificate to support your claim. In this case, there could be two scenarios:
In Conclusion While you are behind the wheel, it is your moral responsibility to make the effort to drive safely so that you protect yourself and others from road accidents. You can also learn about technology which makes your car safer and get them installed. And, to recognise these efforts, car insurance providers reward you with the No Claim Bonus, which you can use to avail a reduction in car insurance renewal premiums. Hence, ensure that you drive responsibly and make the most of these NCB rewards.
