10 Sep, 2024
More responsibility, like transferring ownership and the insurance information, always accompanies a good deal when someone buy used car. One thing that can also help us to save financially is No Claim Bonus Transfer. If you are not aware of it, then do not worry because we have got you covered! In this blog, we will take you through all you need to know about transferring NCB while buying a used car.
No-Claim Bonus: It is the type of allowance extended by insurance companies to the policyholder in case no claims are filed during the operating policy period. This could be as low as 20% and as high as 50% of the premium based on the number of continuous years without claims. The NCB is personal financial incentive for safe driving since it reduces one's insurance premium in the subsequent policy period directly.
There are the main things that you get from the NCB that are listed below:
Cost Savings: No Claim Bonus does and will drastically lower your insurance premium, making it really affordable for your policy.
Encourages Safe Driving: Since one gets an NCB only when one doesn't claim, it enforces the habit of safe driving.
Transferability: No-claim bonus is with the policyholder rather than the vehicle. One can always transfer it if he buys another new or used car.
Transferring the NCB requires an NCB certificate from your previous insurer while buy used car. Here's how you can get it:
1. Call Your Insurer: You can call your insurance company for the NCB certificate. It is usually granted upon selling your used car and cancellation of its insurance policy.
2. Submission of Required Documents: You will need to provide the documentation proof in case of the sale of your previous vehicle along with your written request for the NCB certificate.
3. Issuance of Certificate: After verification of the submitted documents, the insurance company will issue the NCB certificate, and usually, the certificate is valid for three years from the date of issuance itself.
4. Keep It Safe: This is your receipt and needs to be kept safe since the NCB would be required to be transferred to your new policy when you buy used car.
Transfer of NCB to your used car is quite easy, though it is a bit unmanageable. Following is a step-by-step guide:
1. Buy Used Car: Once you have chosen your car and purchased it, first of all you shall get the ownership transfer in your name. For this, you shall need the RC of the car in your name.
2. Confirm Your Insurance Company: You can either proceed with the seller's previous insurance company or choose some other alternative. In any case, inform the insurance company that you wish to transfer your NCB.
3. NCB Certificate Submission: Submit the certificate of NCB, received from the previous insurer along with other documents like RC, ID proof, and address proof.
4. Transfer Request: Fill the NCB transfer form at the insurance company. Ensure all details are exactly the same as those of your previous policy documents to avoid any delays.
5. Verification by the Insurer: At this stage, the insurance company will verify all of your information with regard to the NCB certificate, the transferring of the registration, and the validity of the no-claim record.
6. Premium Discounting: Once verified and approved by the insurer, he will allow the discount. NCB which would work out to reduce the total cost of your insurance policy.
7. Confirmation: Once the NCB was transferred, he will confirm this, along with a revised policy document incorporating the NCB benefit.
Buy used car can be very economical, but it also has problems attached to it. Here are some tips to avoid the common issues arising from this:
Check Car History: Take a detailed history of the car regarding accidents, service records, and loans undertaken. Such comprehensive reports can be obtained from various sites.
Insurance Information: Let its validity and all its details be verified to match with the car's details. Also, check any claims in existence or any previous policy.
Inspect the Car: Have the vehicle comprehensively inspected by a mechanic you trust. Look for any signs of wear and tear, problems with the engine, and ensure all parts are functioning right.
Negotiate Price: Negotiate the price considering its condition, history of service performed, and current market value. If some repair work or enhancements are to be done in view of negotiations, add the prices.
Check for Authenticity: Check for the car's authentic documents, which include the registration certificate, PUC certificate, and road tax receipt.
Ownership Transfer: Effect all interactions related to the transfer of ownership with the RTO efficiently. The name in the RC should be correct, as per the details of the new owner.
Get the Right Insurance: Choose an insurance policy that best suits your needs. For used cars, comprehensive coverage is always desirable as it covers a wide range of risks.
The transfer of the No-Claim Bonus is one valuable procedure that saves some bucks on the insurance premium when you buy used car. Knowing what the NCB is, how to get an NCB certificate, and how to transfer it wisely to the new insurance policy keeps the financial benefits of safe driving intact, even when the vehicle has been changed. Also, avoid some common pitfalls that occur when buy used car by taking a close look at the history of the car, getting proper documentation, and securing the right insurance for it. It can be very satisfying and cost-effective, provided it is carefully planned and with attention to detail when buying a used car.
Do not let the benefits of NCB slip away on buy used car, this little step becomes the stairway to great savings and a comfortable transition into the new ownership of your vehicle.
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