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Know About NCB(No Claim Bonus) and its Benefits

About NCB

NCB stands for No Claim Bonus. This is applicable for the owners of the vehicle who are the policy holder with the benefit of No Claim/ Claims that were applicable for the gone year. The bonus accumulated year after year.

A 20 to 50 percent of discount is applicable in case of Own Damage Premium but this discount is applicable in case of No Claim Bonus.

Affect of NCB on Premium

This method of adopting No Claim Bonus helps in reducing the amount of premium.

There are two ways that help in getting reduction of premium:-

  1. In the first case when there are no claim made and thus is earned the No claim bonus.
  2. In second case the claim is alleged every year.

About NCB fortification

This method of adopting No Claim Bonus helps in reducing the amount of premium.

NCB can be braced in the below mentioned circumstances:-

  • If there has been any claim during the ongoing of the policy time then one cannot claim for NCB in the upcoming year.
  • If the policy have not been re-insured in the period of 90 days from the time pf its expiration date of any existing policy.

Transfer of existing policy from old vehicle to new vehicle

Transfer of NCB of old vehicle to a new vehicle can only be done when the new vehicle has the same class and type as of the previous type of vehicle.

Procedure for transferring NCB:-

  • Ownership should be transferred when the old vehicle is sold so that information should be updated in the RC book for the purpose of insurance.
  • Getting the NCB certificate with the delivery note from the insurance company that has a validity period of three years.
  • On purchasing a new vehicle NCB should be transferred for the new vehicle purchased.

Benefits of NCB

Few of the other benefits that can be attained on acquiring a NCB by paying small extra amount are mentioned below:-

  1. Personal Accident cover
  • Mandatory personal accident coverage of Rs two Lakhs for a individual is provided. This is applicable only in case when the accident happens when the insured person is driving the vehicle.
  1. Additional coverage through extra legal liabilities

Any driver being paid to drive the insured vehicle can also be eligible for getting the insurance by paying an extra amount through added legal liability by paying top up premium.

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