Many car owners insure their car only for following the rules. However, every insurance policy has many benefits. Companies carefully rewards those driving. If you have not taken a claim on your insurance, then you get a no claim bonus. Many people lose their NCBs while buying a new car. If you are going to buy a new car, then you can take advantage of NCB.
You will get benefit on buying a new car
The insurance premium decreases by 50 percent by taking advantage of NCB in buying a new car. It is very easy to transfer it to the policy of the new car. NCB is a reward for good ways and caution. NCB increases as time increases. Claim-free in the first year it starts at 20 %. Then after five years it increases to 50 percent.
NCB will be transferred to new car policy
A car that has high on-damage premium in insurance, its transfer to NCB can cause a lot of savings. Your NCB does not laps when you sell an old car and buy a new car. However, you have to complete some processes to transfer this benefit. After that NCB is transferred to your new policy.
NCB Declaration will be needed
First of all, you will need such a letter that will confirm that you have sold your old car. It is usually issued by the car buyer or can be taken from RTO during the owner transfer of the car. You also have to present the document of your policy of last year. This will confirm your claim-free status. After this you have to give a deckleration, which is called NCB Declaration. You will have to submit these documents to the insurance company. After this, the company will give you NCB transfer certificate.
NCB Certificate valid for three years
The NCB transfer certificate is valid for three years. This means that even if you buy a new car after some time, you can take advantage of it. Only this condition has to be kept in mind that the registration of the new car should also be in the same name which is in the NCB certificate. You will not get the benefit of NCB transfer if there is an example in this. Secondly, it is important to keep in mind that NCB is transferred only when you buy a new car. If you sell your old car and buy a second-hand car, then it will not get the benefit.