Tips To Avail No Claim Bonus For A Car Insurance Policy

If you have not filed any claims for some consecutive years, you'll accumulate up to five hundredth discount on premiums! currently, isn’t that amazing?  It's a valuable reward for safe driving and responsible insurance behaviour.

Tips To Avail No Claim Bonus For A Car Insurance Policy

No Claim Bonus (NCB) is a rebate offered on Own Damage (OD) premium for not asserting your vehicle protection during the arrangement time frame. This implies that for each claim-free year, one will gain the No Claim Bonus beginning from 20% and going up to a limit of half over a range of 5 years. They frequently view this as the ideal approach to decrease one's expense of one's Damage premium at the time of re-establishment.

Here are some tips to avail the claim bonus:

Don’t Lose Your NCB Once You Purchase a New Car

What’s attention-grabbing to notice is that NCB belongs to the owner of the car, and not the car itself. So, if you’ve earned NCB discounts on your existing car, and you opt to shop for another car, you'll transfer the advantages to the new car. However, NCB is not transferred from one person to another unless the automobile's owner dies and the automobile is passed down to the successor.

NCB Calculation On Your Entire Premium Amount

NCB discount is not applicable for third-party insurance premiums, that is the basic insurance that's necessary by law. Usually, third-party insurance premium accounts for up to twenty of the entire premium quantity. So, the earned NCB proportion is going to be calculated on the entire premium minus the third-party liability premium. Understanding this is often essential as car owners frequently wonder if there is a calculation error since they sometimes calculate the NCB on the total premium and believe they are entitled to a small discount.

Avoid Making Small Claims

If the policyholder's vehicle or bike is damaged, he or she should obtain a quote for the repairs. If the amount of NCB you still owe in the coming year exceeds this threshold, it is best not to file a claim and instead pay for the harm out of your own money. Regardless, making claims less than INR 2,000 is often not appropriate.

Don't Announce An Incorrect NCB

Insurers now exchange a lot more data than they used to, and it's easy to get caught. This is expected to happen during the underwriting process, not when a claim is filed, but don't be surprised if insurance firms only exchange data when a claim is filed. The NCB rule is simple: "You can use the NCB facility if you switch insurers at renewal." You'll need to show evidence of the NCB received as a renewal notice from your current insurer. Manipulation of NCB is one of the most common reasons for claims denial. Don't be fooled by agents who promise to "improve" your NCB and give you low premium rates.

Conclusion

While being cautious on the road has additional benefits for you, your insurance company will appreciate it. However, you cannot handle everything on the road, and making a claim is essential. So, plan ahead and get the NCB Protection add-on to drive with peace of mind.