What Happens to Your NCB When You Sell Your Car?

NCB, or No Claim Bonus, is a reward that your car insurer offers you for being a safe driver and not making any claims during the policy tenure. The insurer offers a discount on the next insurance premium. Every year you pass without claiming your insurance policy, your discount percentage increases up to 50% on your insurance premium. 
This discount will help you to make significant savings on a mandatory expense like car insurance. However, if you make a claim in any policy year, your NCB/No Claim Bonus will reset to zero, and you will have to pay the full amount of the car insurance premium.

People in India accumulate their NCB for years to claim higher discounts on their insurance premiums. However, you must be wondering how to preserve your NCB even after you sell the car? Well, NCB is associated with the car owner and not the car. So, you can easily transfer your NCB/No Claim Bonus to the insurance policy of your new car. Your NCB also stays with you if you choose to change your car insurer, and you can use IDV calculator to determine the premium.

NCB/No Claim Bonus is one of the best features provided by an insurer in car insurance policies. Here is a list of the benefits of NCB in a car insurance policy.

Affordable Insurance Policies: In India, having car insurance is mandatory. This acts as a fixed cost for you. The NCB/No Claim Bonus feature in a car insurance policy makes it affordable and brings down your overall fixed costs.

Transferable :NCB is associated with the car owner, not the car insurance policy. If you decide to sell or change your car for any reason, you can transfer your accumulated NCB/No Claim Bonus and enjoy its benefits.

High Savings: You can get up to a 50% discount on your insurance premiums with consecutive claimless years. This saves you a lot of money on a mandatory expense like new car insurance online.

Flexibility: Your accumulated NCB remains with you if you decide to change your insurer. So, if you find an insurance company that is offering you better offers than your existing one, you can change your insurer without resetting your NCB. 

Transferring your NCB/No Claim Bonus from your old car insurance to a new car insurance policy is a streamlined process. Here is some guidance for you to transfer your NCB.

Car insurance is an ongoing process. So, it is important to complete the process properly to avoid any issues while claiming the insurance or transferring your NCB. Here are a few things you should know about car insurance and NCB.

NCB is a great way to reduce the burden of your car insurance obligations. Here are a few tips to get the most out of your NCB.

Having car insurance safeguards you from various financial threats that you are prone to while driving your car on the streets. However, the cost of car insurance is a burden for many people. NCB/No Claim Bonus in car insurance can help reduce that burden and keep you secure from financial uncertainties. However, you have to be a responsible and safe driver to make sure you do not need to make any claims to your insurer.