[hypermiler]

I have a ncb protection letter for 50% from my previous car sale valid till 2024. In 2021, I purchased a new car. Since my old car sale was just done, I was unable to transfer the ncb benefits during the purchase of the new car then. Now, using the ncb reservation letter, I tried to transfer the 50% benefit to my now 2 year old car. But none of the insurance providers are willing to consider this. They say I can get the benefit only when I purchase a new car and it cannot be transferred to an old car. One vendor claimed that the ncb benefit has already been claimed!

I am pretty sure that transfer is possible as I had done this similar transfer earlier, 4-5 years back i.e., old car ncb benefits to a 2 year old car (with ncb 20%). Has anything changed?

[ghodlur]

Originally Posted by hypermiler

I have a ncb protection letter for 50% from my previous car sale valid till 2024. In 2021, I purchased a new car. Since my old car sale was just done, I was unable to transfer the ncb benefits during the purchase of the new car then. Now, using the ncb reservation letter, I tried to transfer the 50% benefit to my now 2 year old car. But none of the insurance providers are willing to consider this. They say I can get the benefit only when I purchase a new car and it cannot be transferred to an old car. One vendor claimed that the ncb benefit has already been claimed!

I am pretty sure that transfer is possible as I had done this similar transfer earlier, 4-5 years back i.e., old car ncb benefits to a 2 year old car (with ncb 20%). Has anything changed?

Nothing has changed. The Insurance cos are taking you for a ride. If the NCB certificate is valid then no Insurance co can stop you from claiming the NCB bonus.

Ideally you should have sent the NCB certificate to the Insurance co when you purchased the car in 2021 for an equivalent amount refund and get the policy updated with the NCB eligibility.

[gischethans]

I sold my car and asked Digit, the insurer for the process of obtaining the NCB certificate. They gave me these options -

• Own Damage part needs to be cancelled by retaining Third Party premium (requires cancelled cheque).
  OR
• We will recover the NCB premium and issue the NCB certificate.

If I go with the second option, the policy will continue to have own damage cover. But do insurers give NCB benefits to new owners - unlikely, right? I suppose they would also collect the same amount from that person. Then how is it justified to collect that amount from me?

[Aviator_guy]

Originally Posted by gischethans

I sold my car and asked Digit, the insurer for the process of obtaining the NCB certificate. They gave me these options -



If I go with the second option, the policy will continue to have own damage cover. But do insurers give NCB benefits to new owners - unlikely, right? I suppose they would also collect the same amount from that person. Then how is it justified to collect that amount from me?

In case of resale, the insurance company collects the NCB recovery amount from the buyer unless the seller has already paid this amount to get NCB letter. Buyer does not get NCB benefit in either of the scenarios. Hope this helps.

[nidhikapoor]

Originally Posted by ghodlur

You don't need a NCB certificate to claim the NCB discount for the new vehicle, all you need is a NCB endorsement. In any case every Insurer will issue the NCB certificate post the confirmation of RC transfer of the old vehicle.

What is a NCB endorsement? How does one get it?

[ajay99]

Originally Posted by nidhikapoor

What is a NCB endorsement? How does one get it?

NCB endorsement is the one given by your insurer that can be used by you when you buy a vehicle in the future.It is valid for 3 years from the date of issue

[ghodlur]

Originally Posted by nidhikapoor

What is a NCB endorsement? How does one get it?

NCB endorsement is nothing but your NCB eligibility which is confirmed by the Insurance co. Once can share the policy document to the customer care mail id and request for the NCB endorsement to which the Insurance co will reply stating the NCB eligibility. This can be used during the new car insurance purchase. Once you sell a car then you can demand for the NCB certificate which is valid for 3 yrs.

Originally Posted by ajay99

NCB endorsement is the one given by your insurer that can be used by you when you buy a vehicle in the future.It is valid for 3 years from the date of issue

Slight correction, see above.

[nidhikapoor]

Originally Posted by ghodlur

NCB endorsement is nothing but your NCB eligibility which is confirmed by the Insurance co. Once can share the policy document to the customer care mail id and request for the NCB endorsement to which the Insurance co will reply stating the NCB eligibility. This can be used during the new car insurance purchase. Once you sell a car then you can demand for the NCB certificate which is valid for 3 yrs.


Slight correction, see above.

So, you will need the actual NCB certificate to get the benefit on the new car insurance? Or will the endorsement be enough? I got an endorsement but it says as follows. I guess I wont get the NCB on my new car unless my certificate says that ownership has been transferred?

(A) Confirmed NCB % : 45%.
(B) OD Claim status on the policy : No Claim.
(C) NCB Status : NCB Confirmed.
(D) Ownership Transferred : No.

[ghodlur]

Originally Posted by nidhikapoor

So, you will need the actual NCB certificate to get the benefit on the new car insurance? Or will the endorsement be enough? I got an endorsement but it says as follows. I guess I wont get the NCB on my new car unless my certificate says that ownership has been transferred?

NCB certificate is handed by the Insurance co only after the ownership transfer i.e if you sell the vehicle.

However if you are not selling your existing vehicle and plan to buy a new one, the existing NCB can be used to buy the Insurance for the new vehicle for which the NCB endorsement is sufficient. This will make the NCB zero for the existing car as NCB can be taken only one vehicle. Hope this clears.

You will need to inform the existing Insurance co of using the NCB for the new car insurance.

[mreccentric]

NCB is owner dependent, and it is possible to transfer the NCB. The usual misconception is that NCB is dependent on the vehicle (which is false).

Since I know this well as I worked as an Insurance agent, in two of the well branded companies, I can suggest you in contacting the agency in matters related to it. One or the other insurance company, who are interested with the customers would definitely help you on this. Please make a point that NCB is owner dependent.

[supremeBaleno]

Originally Posted by supremeBaleno

Is it required that we sell our old car to claim the NCB certificate? What if I want to retain the old one, but want to use it's NCB to a new car purchase ?

Originally Posted by Aviator_guy

Technically, insurance company should provide NCB letter on customer request and charge the customer for NCB recovery.

Originally Posted by hp52_vishy

Perfectly ok. I actually did sell my old car. However, just to test out the hypothesis above- I didn't do it before buying the new one. You just need transport invoice of new vehicle and you can transfer the NCB benefit from old car to new as long as you owned the old car and are the owner of the new car too.

So I wanted to get the 50% NCB certificate of my 2005 Baleno (never claimed insurance ever) and use it for the purchase of a new car. I went to the local National Insurance office where we have all our cars/bikes insured and tell the guy that I needed the NCB certificate. He asks me to give a request in writing.
And after paying Rs409 towards the NCB discount for remaining insured period, they issue me a certificate. Never imagined it is as simple as this. And he said there's no need to sell the old car or show any RC change info etc.

Against the dealer quote of Rs.58,641 for the new car's insurance, it is only Rs.30900 with the 50% NCB applied. A cool 28K savings.

I wouldn't have known this if not for this thread by Ajmat.

[Sufficient_shop]

I'm new to this and have tried my best to go through the thread to find an answer to my noob question, but unable to figure out. So here i my question:

I have booked a new car which is expected to deliver in the next 2-3 months. I plan to sell my old car only after that. How can I transfer my NCB (which is at 50% right now) from my old car to the new one? I understand NCB is for the insurer and not the car itself, so my assumption is I should be informing my new car insurer about NCB. Am I right?

If so, what will happen to the insurance of my old car when I sell it? The new buyer will have to reinsure the car like a fresh insurance?

[Fillmore]

Originally Posted by Sufficient_shop

I have booked a new car which is expected to deliver in the next 2-3 months. I plan to sell my old car only after that. How can I transfer my NCB (which is at 50% right now) from my old car to the new one? I understand NCB is for the insurer and not the car itself, so my assumption is I should be informing my new car insurer about NCB. Am I right?

If so, what will happen to the insurance of my old car when I sell it? The new buyer will have to reinsure the car like a fresh insurance?

You can get a NCB letter from the old insurance company only after the Sale of the old car. Against a copy of the sale certificate, the old company will issue you a NCB letter with the % specified.
Then you take this letter to the new insurer and ask them to transfer the NCB.

An NCB letter once issues is valid for 3yrs.
If you do not get it before registration of the new car, then for the 2nd year insurance renewal you can present the NCB letter and incorporate the NCB bonus.

[Aviator_guy]

Originally Posted by Sufficient_shop

I have booked a new car which is expected to deliver in the next 2-3 months. I plan to sell my old car only after that. How can I transfer my NCB (which is at 50% right now) from my old car to the new one?

Originally Posted by Fillmore

You can get a NCB letter from the old insurance company only after the Sale of the old car.

There is more to this than meets the eye. While insurance company insists on issuing NCB Letter only on sale of car, it may not be true. There is a provision that customer can request NCB Letter even without selling the car, by paying a small fee (called NCB recovery). It may require you to visit the company office or follow up multiple times. If you have healthy NCB on current car and you are willing to spend some time then you should try this option. It gives you option to apply NCB on new car purchase and the savings can be substantial.

Check out post from @supremeBaleno by scrolling up and you'll find more info.

[Sufficient_shop]

Originally Posted by Aviator_guy

There is more to this than meets the eye. While insurance company insists on issuing NCB Letter only on sale of car, it may not be true. There is a provision that customer can request NCB Letter even without selling the car, by paying a small fee (called NCB recovery). It may require you to visit the company office or follow up multiple times. If you have healthy NCB on current car and you are willing to spend some time then you should try this option. It gives you option to apply NCB on new car purchase and the savings can be substantial.

Thank you so much for this. I'm exploring my options right now.

One interesting thing I came across on ICICI Lombard is that the NCB is applicable on the "same class" of the car. What does this mean? It won't be applicable if I'm moving from a hatchback to a mid-size SUV?