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G.Ramdas
30-03-2009, 12:36 PM
We are all familiar withthe types of Insurance policies for M.V the insurance ,premia and no claim bonus. Basiclly No-claim bonus is a discount one gets while renewing the motor policy after a claim-free year.The clause refers to the discount that a policy holder can receive on the amount of premium payable, if he has not lodged any claim during the year. The policy holder can claim a 20%, 35%, 50% and 65% discount in the premium of the first, second, third, and fourth year of holding the policy.
It can build into a substantial discount over a 3-4 year period, and is an incentive for driving carefully and avoiding accidents. Also you benefit from the No Claim Bonus as long as you do not make a claim under your Insurance policy. No Claim Bonus (NCB) clause is applicable to holders of comprehensive insurance policy.

What happens to the no-claim bonus when I sell my car ?

When you want to buy a new car and have a clean claim record, you can transfer this record to your new vehicle. Suppose you have to pay Rs 100 as premium on your car. Because of your clean driving record, you pay only Rs 35 (when you enjoy a NCB @ 65%). Now, when you buy a new car which has a value higher than the current one, premium is undoubtedly higher. But you get to transfer the bonus percentage onto your new car. So, if on your new car the premium that you have to pay is Rs 10,000, because of the NCB, you pay only Rs. 3500 that is you save Rs 6500. However the purchase has to be made within the first three years of sale of the old car.
Does the purchaser of an old car get the benefit of ncb?

The ncb goes with the original owner since he can claim bonus on his next purchased vehicle. However, the purchaser enjoys the bonus under seller's policy till the renewal date. On date of renewal, the bonus/malus has to start afresh.
What happens when the car seller gives insurance free for one year.?

You can still insist for the ncb clause to be incorporated as it will be beneficial for later years. alternatively on renewal in second year you can get this incorporated as ncb of earlier vehicle is valid for 3 years
So next time you buy a car or exchange a car, make sure that your NCB is incorporated. Verify these provisions with the Insurance authority.You can always transfer the insurance from company to another.

vnatarajan
30-03-2009, 04:47 PM
Dear Shri GR/ all (Nice topic- something more to share!)

I wish to share my own experience, about 4 years back, when I SOLD my old car and bought a new car.

1.When you sell the vehicle, you also have to transfer the policy to the new owner as per the available rules, and get the reciept from the owner both for the vehicle as well as policy transfer in the proper forms.

2.You have to get a No Objection Cert from the concerned old Ins. Co for you to claim NCB while taking the new policy for the new vehicle as ITS OWNER..

3.NCB is technically related to your skill as an 'accident-free' Driver. Therefore you carry the benefit of the same when you buy the insurance for the next vehicle, for which you become the owner-driver!, Under the circumstances, YOU CAN HAVE “NCB” ONLY FOR ANY ONE VEHICLE at a time!. I mean-if you own two vehicles, you can have NCB in favour of one of them only.

(Funny thing that happened in this regard: For 3 yrs, unknowingly, I happened to own my former vehicle as the then buyer did not get the RC book transferred in his name (taking a risk!)- because the book was said to be “LOST” -early after his purchase of my old car (wh was through a broker- must have happened due to mischief of the broker- who did not hand-over the same to the buyer for some reasons/ dispute?)

Last year, suddenly this "successor-owner" of my old vehicle appeared before me with the request to sell AGAIN my vehice to him! .I was stunned/ shocked!. When I asked him about the INSURANCE etc, he said the INSURANCE Co had continued to renew the policy with myself as the OWNER (by proxy!) charging FULL PREMIUM. For them the policy was more important! When I asked why now he needed my sale -transfer certs. etc, he explained the whole episode and he now needed that to apply for a "DUPLICATE RC" book, as he wanted to sell it and buy a new vehicle.

However after getting all the undertakings/ indemnity declaration for the period during which I had continued to be the “PROXY OWNER" of my old "sold" vehicle, I "resold" the same- to enable him to GET A DUPLICATE RC BOOK. It took the owner 3 years to approach me - and when I asked him how he managed without the RC Book- he said the need never arose- as there were no calamity/ accident/ need for him to sell the vehicle etc. till the day he decided to replace it with a new vehicle)

vnatarajan