No Claim Bonus (NCB) is the type of privilege one can avail if he/she does not make any claim on the damages of the car. While buying a car insurance for any vehicle, it is a dilemma in people's mind as to what will be the premium amount set by the concerned insurer. There are methods with which the insurance premium can be minimised to almost null value and among these is the no claim bonus. When a person does not make any claim in the last insurance policy tenure, he/she is ultimately entitled to have this type of bonus, which helps in reducing the premium amount. Interestingly, NCB can also be transferred from one car to another and ways of doing the same are basic:
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A user can transfer no claim bonus from his old car to new car by simply retaining the old car insurance policy for the new car into their own name.
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After doing so, people just have to visit their insurer and has him for the no claim bonus certificate.
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By attesting this certificate with the new car's policy, people are entitled to reserve the existing bonus points on the new car as well.
This bonus helps in reducing the hefty amounts of premium, which people have to pay during any insurance claim. By not claiming for any insurance for successive years, people can reduce this premium amount to an astonishing 45-55 per cent. Notably, people are also entitled to this bonus if they have contacted a third party to cover the insurance charges on their damages and not their concerned authority. It is generally advised that people should not make small claims for scratches or light damages on the car and the same should be repaired from a third-party insurer or the local mechanics. By doing so, they will be able generate the NCB and will be able to obtain its benefits.
No claim bonus on car insurance is easy to be transferred and allows people to maximise their savings in long run. However, the bonus gets forfeited if any claim is being made in the last policy year by the users. Also, if people do not renew their policies even after three months of its date of expiry, the NCB can be lost. It is always recommended to choose an insurance policy according to the needs and budgets of an individual. One should first do a thorough research on portals or in local markets about the type of auto insurance schemes available and which will benefit them the most. If these policies are selected without proper analysis, people might end up paying hefty premium amounts and would not able to maximise the advantages of the insurance. No one wants to pay extra from their pockets in case of claiming for any damages and therefore, it is suggested to utilise the resources fully and examine all the aspects before finally opting for an insurance provider.
