Here’s what you and every driver needs to Know about the No Claim Bonus and Your Car Insurance.
The common belief is that only dangerous drivers need to buy car insurance online and that safe driver receives no benefit from their insurance. Yet, you may not be aware that insurance companies provide concessions to policyholders who manage to go a whole policy year without filing any claims. This is NCB which stands for No Claim Bonus. *
If you have a good driving record, your insurance company may offer you a reduction on your premium when it comes time to renew your coverage. This is called “accident forgiveness” or “good driver” concessions. If you go without filing a claim for several years, your rates might be reduced by as much as half. Isn’t that incredible? Some more essential information regarding NCB follows. *
When you upgrade to a new vehicle, your NCB remains intact
NCB belongs to the automobile’s owner, not the car itself. The NCB savings you’ve accrued on your current vehicle can be used to purchase a new vehicle. However, if the automobile’s owner passes away and the car is inherited, the NCB will not be transmitted to the new owner. * ##
Your NCB may be able to lower your OD premium by as much as 50%
If you get an app to check car insurance and realise that you have had no claims for five years, your insurance company may offer you a concession of up to 50%. Once you have previously received the 50% concession, you will not be eligible to get any more concessions, even if you go another year without filing a claim.*
Your NCB can increase in the following ways:
No-Claim Bonus is not applied to the full amount of your insurance premium
Premiums for the legally required minimum level of auto insurance, known as third-party liability, are excluded from NCB concessions. The price for third-party liability insurance might make up as much as 20% of the entire premium. The earned NCB percentage will be determined by the total premium, less the third-party responsibility premium. *
Automobile owners need to grasp this concept since they may question whether or not they made a mistake when calculating their NCB if they found that it was less than the overall premium.
It’s pointless to report an inaccurate NCB
Without any malice intended, writing any number for NCB when switching insurance coverage might have devastating results. The auto insurance claim on your car insurance app might be denied if your NCB was declared incorrectly. In other words, declaring the erroneous NCB while applying for insurance is the same as not having insurance at all. Make careful to disclose any claims filed with your former auto insurer in the year you are switching policies. Insurance companies can readily obtain this information, so it’s not worth it to lie about your health or criminal record if you want to purchase a policy or file a claim. *
Any driver, experienced or not, will tell you that it’s not enough to focus on your own safety on the road; you also need to take measures to shield yourself from the negligence of others. Having the NCB Protection Plan in place can guarantee that you receive the benefit of exercising caution, even if another party is careless. Hence, plan ahead and drive safely. *
Being cautious on the road has numerous advantages, but your insurance company will undoubtedly thank you for it. Yet, accidents on the road are unavoidable, and claims must be filed sometimes. So, buy car insurance online & get the NCB Protection upgrade and think it through while you’re behind the wheel. *
*Standard T&C Apply
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.