Car insurance portability
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With portable car insurance, you are able to transfer to another insurance provider without affecting your existing No Claim Bonus (NCB), provided that you transfer at an appropriate time. Find out the exact period during which you should do this and what is being transferred.
What is car insurance portability?
Car insurance portability refers to the process of transferring car insurance to a different insurance company without losing the No Claim Bonus already earned on the same. Just as mobile phone number portability allows switching telecom service providers with retaining the number, car insurance portability ensures that the built-up NCB also follows you.
Why do people port their car insurance?
The most frequent causes of changing health insurance providers include:
1. Reduction in premiums for the same type of cover.
2. Increased coverage or more attractive additional covers than the current one.
3. Improved claim settlement history of the new insurance company.
4. Improved services, such as cashless garages or repair services.
5. Dissatisfaction with the current insurance company or intermediary.
Can you port your car insurance mid-term, or only at renewal?
In the majority of cases, people port at renewal, as it is the easiest and most common option: one simply transfers their existing insurance policy details to the new insurance company without a lapse in coverage. However, porting is not restricted to the time of renewal; when there is a true failure of service on the part of the insurance company/agent, or the customer is repeatedly rejected for claims or faces mis-selling from the existing company, one can also seek to make an in-term port.
What happens to your No Claim Bonus when you port?
Your No Claim Bonus (NCB) is not linked to your vehicle or the previous insurance policy; it is linked to you as the policyholder. In other words, the main reason it continues to move with you is when you change insurance providers.
NCB slabs for reference:
If you are concerned that one small claim could take away your high NCB slab, an NCB protector add-on, priced around ₹500 - 1,500 per annum, allows your existing insurer to pay for one or two claims each year without affecting your bonus, but only with your existing insurer.
How do you port your car insurance online?
Compare plans amongst insurers for premium, coverage, and ratio of claim settlement before making a decision about changing insurers.
Remember the expiry date of your existing insurance and initiate the procedure two weeks prior to that, so that you get enough time for the inspection if required.
Mention all the details of your old policy (policy number, name of the insurer, NCB certificate if required) to the new insurer.
Decide upon the new insurer’s IDV and premium rates – remember that you are not transferring the IDV of your old insurance policy.
Get the inspection done, in case your policy has already expired beyond the grace period.
Make the premium payment and receive your new insurance document, which is issued instantaneously by digital insurers.
What should you check before porting your policy?
Expiry of your policy: You could port your insurance smoothly after the policy expiration.
Certificate of No Claim Bonus: Some insurance companies digitally verify this while others require you to get it from your previous insurance company.
Insurer's IDV: It is important to confirm that it is in line with the actual market value of your car, not just a low number which would reduce the premium but also the claim amount.
Claim settlement ratio (CSR) of the new insurer: This ratio gives a strong indication on what to expect in terms of claim settlement with the new insurer.
Add-ons that you need: It is a great opportunity to go through and check if covers like zero depreciation or engine protection are still suitable for your car's age and your usage.
Porting vs staying with your current insurer
What are the benefits of car insurance portability?
Here are the benefits of switching to a new insurance company.
Enables you to move to a new and better insurance company.
You have the option to transfer the NCB to the new plan.
You can include better car insurance add-on covers to boost your primary plan.
You get to experience better services such as hassle-free claim settlement, easy repairs, etc.
Frequently asked questions
Is there a fixed time window to port car insurance?
The best period is within 90 days after expiry of your policy. This way, your NCB will be protected, and you will not require any inspection. However, there are no restrictions regarding porting insurance outside this period. However, you might lose your NCB and get inspected.
Does porting car insurance cost anything extra?
No, there is no charge for porting. You just pay the premium according to the new insurance company’s rules.
Can I port my car insurance mid-term?
Yes, but only in specific cases of mis-selling or recurring service failures, which generally means getting the problem sorted out with your existing insurance company or via IRDAI first. People generally prefer to port at renewal because it is easier.
Will I lose my NCB if I've already made a claim this year?
Yes. Making a claim resets your NCB to 0%, regardless of when you do it or whether you've switched policies.
Can a car be insured twice with two different insurers?
No. Your car cannot have two active policies at the same time, even if you can have two from two separate companies. The extra policy does not give you more insurance.
Does my NCB transfer if I sell my car and buy a new one?
Yes, because NCB is linked with you as a policyholder, not the particular vehicle itself. It can be transferred to another vehicle during the same 90-day period allowed for switching insurers.
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