Your car insurance has features that can be highly valuable and make your policy very profitable for you. Some of these features are bumper-to-bumper car insurance, no-claim bonus and riders; they make your policy experience especially wholesome.
As you might know, a no-claim bonus in car insurance is a reward for the policyholders who do not file any claims during the policy term. It is a bonus, more like a discount, on your car insurance premium. The good thing about NCB is that it can be accumulated and transferred to your new four-wheeler insurance.
In this blog, we discuss the steps that will help you avail of NCB in car insurance.
Steps to Avail No-Claim Bonus in Car Insurance
● Earn No-Claim Bonus
When you buy four-wheeler insurance, you are informed about NCB and its positive implications. Hence, the first thing you need to do is try to earn NCB in car insurance from your insurer. Earning a no-claim bonus is a continuous and cumulative effort. You have to take care of multiple things at a time.
You need to have great judgement to understand when to make and when to avoid making a claim. This will help you prevent small claims that could easily be covered out of your pocket.
You must adhere to traffic rules, drive safely, maintain your vehicle and visit servicing centres regularly. This way, you reduce the risk of accidents and breakdowns and, consequently, claims.
● Accumulate the NCB
The next step is to accumulate the NCB that you have earned up until now. This is necessary because your NCB in car insurance keeps on increasing after every claim-free policy term.
According to NCB insurance calculations, you can earn from 20% up to 50% discount on your policy in your new car insurance for a no-claim bonus. Therefore, do not miss any policy renewal!
● Get NCB Certificate
When you finish your policy term and decide to switch insurance companies, you need to request an NCB certificate. This certificate is necessary for procedures like policy renewal, policy cancellation and new policy purchase.
This certificate is valid for three years from issuance. You need to get new car insurance within these three years and transfer the NCB in car insurance to the new policy.
● Submit Documents
The next step is to submit documents to the new insurer for the no-claim bonus in the car insurance you newly issued. You need documents that prove your claim-free policy terms.
Keep the car’s registration certificate, NCB certificate, old car insurance policy papers, vehicle make and model, variant, ownership papers, identity proofs and other essential documents.
● Contact New Provider
Your new policy provider needs to know that you can avail of NCB in car insurance. Apart from submitting the document at the time of issuance, you need to inform the providers regarding the NCB discount application for your policy’s premium. Your NCB certificate will prove and align your information with the previous policy papers.
● Gain Discount
After this, you will receive a discounted premium from your new insurance company. Make sure that you opt for a company like Tata AIG that is highly reputed and offers rightful discounts and affordable premiums.
Steps to get No-Claim Bonus Certificate
- Inform your current insurance provider regarding the rightful no-claim bonus you earned on your car insurance policy.
- Submit necessary documents to the insurer, such as identity proof, registration number, and claim history.
- The insurance company will verify your policy and check whether or not your claim is reliable.
- If they find no claims under your policy, you are rewarded with an NCB certificate, which you can use at the time of renewal, cancellation, or purchase of a new policy.
Things to Know About NCB
- You can accumulate your no-claim bonus in car insurance.
- According to standard NCB insurance calculations, NCB can build up to 50%.
- No-claim bonus in car insurance can only be calculated on the own-damage cover aspect of the car insurance policy.
- NCB in car insurance is transferable to the new insurance policy.
Conclusive Thoughts
Availability of a no-claim bonus in car insurance can lead to a substantial change in your premium amount. Reduction in your premium leads to a profitable car insurance deal. The main reason behind this is that even after discounted premiums, you are eligible to claim the same insured declared value.
Ensure that you are making the most out of your policy by avoiding unnecessary claims and earning great discounts.