How to Claim NCB On New Car Insurance Policy Premium


A car insurance policy protects you financially in case of any damages or losses that you may incur in the event of an unfortunate event like road accidents, etc. However, as the owner and driver of the vehicle, it is your responsibility to drive safely and avoid any road accidents. This will not only ensure your safety but will also lead to the insurance company rewarding you with NCB (No Claim Bonus) rewards for not filing any car insurance claim. In this article, we will tell you all about using the NCB rewards of an old car insurance policy to reduce the premium of a new car insurance plan. But first, let’s understand the meaning of NCB.

What is a No Claim Bonus (NCB)?

The No Claim Bonus in car insurance is a reward offered by insurance providers for not filing a car insurance claim during the policy tenor. This reward is offered in the form of a reduction in the premium during car insurance renewal. This reduction can go up to 50% of the car insurance premium amount!

Claiming NCB of Old Car Insurance Policy to Reduce New Car Policy Premium

It is important to note that the NCB is rewarded to the car insurance policyholder and not the insurance policy. Hence, you can continue to reap the benefits of the NCB rewards even if you are not associated with a particular insurance provider during policy renewal.

Now, let’s take a look at how you can claim the NCB of your old car insurance plan to reduce the premium of your new car insurance policy:

  • Earn No Claim Bonus on Old Car Insurance
    The easiest way to earn NCB rewards on your old car insurance plan is to drive your car safely and avoid raising any insurance claims for minor repairs/replacement expenses. This will help you secure your NCB rewards.
  • Retain the No Claim Bonus When Buying a New Car
    The NCB in car insurance increases every year for 5 consecutive claim-free years, and the maximum reduction you can get on your car insurance premium is 50%. You can continue to avail the 50% reduction from the 6th year until you raise an insurance claim or do not renew the policy for more than 90 days after the policy has expired. When you have accumulated the NCB rewards and wish to purchase a new car, you can easily transfer the No Claim Bonus to the new car’s insurance policy.
  • NCB Certificate
    If you wish to claim the NCB from your old car insurance policy to a new one, you will need to get the NCB certificate to support your claim. In this case, there could be two scenarios:
  1. When you purchase a new car insurance policy from your existing insurance provider:
    Since you are purchasing a fresh plan from your existing insurance provider, you can request them to provide a copy of the NCB certificate.
  2. When you purchase a new car insurance policy from a new insurance provider:
    In this case, you will need to file a request with your old insurance provider to issue the No Claim Bonus transfer letter and the NCB certificate so you can avail a reduction in the premium for the new car insurance policy from a different insurance provider.

In Conclusion

While you are behind the wheel, it is your moral responsibility to make the effort to drive safely so that you protect yourself and others from road accidents. You can also learn about technology which makes your car safer and get them installed. And, to recognise these efforts, car insurance providers reward you with the No Claim Bonus, which you can use to avail a reduction in car insurance renewal premiums. Hence, ensure that you drive responsibly and make the most of these NCB rewards.