How to transfer NCB? Here is a quick and simple guide to help you in knowing all about No Claim Bonus…
When you renew your car insurance, you often end up asking for discounts on your insurance premium. However, you can save a significant amount on your car insurance premium by availing No Claim Bonus (NCB). NCB plays a very crucial role in determining your premium for car insurance. Additionally, it also encourages you to drive carefully and prevent accidents that in turn can lead to claims.
You can avail No Claim Bonus with each claim-free year. For instance, if you buy car insurance and have not made any claim during that year then you are eligible to get a certain amount of discount on your car insurance premium for the next year. Do remember that NCB is applicable only on own damage premium component and not on third-party liability premium. Let’s understand the effect of NCB and how can you protect it.
Effect of NCB
A no claim bonus is normally given by insurer at the end of the claim-free year. The NCB often starts from 20% for the first-claim free year and can progressively increase up to 50% with each claim-free year. However, even if a single claim is made, the NCB amount goes right back to zero.
Protect No Claim Bonus
You can protect your NCB by buying an add-on cover at the time of buying your insurance. Protecting your NCB may allow you to retain your NCB bonus even if you make a claim. Each insurance company has certain rules and regulations regarding how many claims are allowed per year under this add-on. So, before you plan to protect your NCB by buying an add-on cover, clarify from your insurer regarding how many claims are allowed.
Termination of NCB
As long as you do not claim, you will continue to get the benefit of the NCB protection. Do remember that the no claim bonus can get terminated in these two scenarios:
- If you have already made a claim during the policy year.
- If you fail to renew your policy before its expiration.
How to transfer NCB?
In case, you buy a new car and wish to transfer your NCB, you can do so. If you are planning to buy a new Toyota car, then you can opt for Toyota insurance from the same or different insurer. If you switch insurer, then make sure you ask for a proof of no claims from your current insurer to avail the discount on your premium. If you haven’t asked for a claim for your old car then your new insurer can give you a discount on your Toyota insurance from the new insurer. Try not to switch insurer before the expiration of your policy or else you would have to give up on the NCB.
To sum it up all, NCB is a great way to save money on your car insurance premium. But before you buy car insurance or plan to change your insurance company, read all the conditions carefully to understand how to use and transfer the NCB.