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You can carry forward the no- claim bonus (NCB) you earn on the car insurance for your previous car to the car insurance you take for your new car. Insurers let you transfer NCB, which is as high as 50% of the premium, to a vehicle of the same type. So, you can transfer your NCB from your car to another car but not to a bike.
What’s the benefit? The biggest advantage is that the first-year premium comes down. The first-year premium is the highest since the value of the car is also the highest in the first year. By transferring NCB, you begin on a cheaper footing. Sample this: The (insured depreciated value) IDV of a Santro is Rs3.6 lakh. To insure a Santro in the first year for own damage, the insurer will charge you around Rs10,218. But if you transferred NCB of, say, 50% from your previous car, the premium would come to around Rs5,109. Every year, the premium goes down along with the depreciating value of the car.
What you lose? You will not get any fresh no-claim discount if you exhaust the maximum limit of 50% in the first year itself.
Transfer terms: If you have sold your old car, then you need to get a NCB certificate from the insurer. You need to transfer NCB within six months. But if you are not selling your old car, you need to buy a new car insurance policy for it.
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