Motor insurance policies come with a provision called No Claim Bonus (NCB) which is an incentive for safe driving.
Good Discount on Premium...!
Under this provision, a good driving record &claim free insurance history can give customers good discount on their premium.
Insurers provide discounts on premium for every claim free year, ranging from 20 % or the first year upto 50 % for five (5) consecutive claim free years.
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| Arun Balakrishnan, BerkshireInsurance.com |
However, under the sunset clause, if you already have a No Claim Bonus higher than 50 per cent (upto 65 %), you can continue to avail the same for all renewals, subject to the submission of required documents.
Driver and Vehicle..!
The No Claim Bonus depends entirely on the driver and not the vehicle. Thus, the NCB you earn can be transferred from your old to your new vehicle.
However, the vehicles must fall under the same vehicle category and same class (identical cubic capacity).
This means, the No Claim Bonus on a two wheeler can not be transferred to a four wheeler and vice versa, neither can it be transferred to a vehicle which falls into a different category..!
To transfer NCB, after selling the old vehicle, the insurer must be notified and all supporting documents sent to the insurance firm. The insurer will then send you the No Claim Bonus certificate. This can then be forwarded to the new insurer for the transfer of benefits.
Own Damage premium..!
The No Claim Bonus is applied to the Own Damage premium. However when one makes a claim, the No Claim Bonus accrued turns null and void. In such a case, the customer will have to pay the entire premium for policy renewal sans discount.
Thus, it is best to forego small claims where the cost of repair is lower than the benefit forfeited due to loss of No Claim Bonus. One must weigh the two options and then decide accordingly.
So drive safe & save a bundle on your insurance premium..!
About the author...!
Media Contact For BerkshireInsurance.com
Tripti Modi, Senior Account Executive
Adfactors PR Pvt Ltd. City Hall, Oasis Complex,
Kamala Mills Compound,
Pandurang Budhkar Marg, Lower Parel (West), Mumbai - 400 013
Tel: +91 22 6757 4444 Extn-292, Mob: +91 99305 00098
Fax: +91 22 6757 4488, Email: tripti.modi@adfactorspr.com
Yeah really it's a good info regarding NCB and sunset clause. BerkshireInsurance.com got a good start in India.
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