How to claim no claim bonus on new car insurance

Buying car insurance is a mandatory cost that one needs to consider. If the car buyer has earned a no-claim bonus (NCB) on his previous car policy, this can be claimed on the insurance premium for the new car. Here’s how to claim it.

Obtain no-claim bonus certificate

You need to contact the previous car insurance company to obtain a no-claim bonus certificate. If the new car policy is being taken from another insurer, a no-claim bonus transfer certificate needs to be obtained.Documents needed
To claim NCB, keep the following documents ready: Old car insurance policy document. Copy of no-claim bonus certificate of the old car. Vehicle details, including the make and model of the car.

Inform the new insurance provider

The policyholder should inform the new insurance provider about his eligibility for the NCB. It is important to do this while purchasing the policy and before making any payment. The insurance company will use the NCB certificate and vehicle details to calculate the NCB discount. This discount is applied to the premium amount, reducing the overall cost of the insurance policy.Pay the premium
Once the NCB discount is applied, the policyholder can pay the remaining premium amount. It’s important to ensure that the premium payment is made within the stipulated time to avoid any disruptions in coverage.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.

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