[staraphd]

So I applied for NCB transfer after 6 months of purchase of the new car (insurer B). I had 25% NCB with the old car (insurer A). Insurer B is not providing 25% deduction on the own damage section. They refunded me a weird amount which is well below 25% of own damage section. I have emailed them multiple times that I don't agree to the refund amount and that I need to know the formula as how they arrived at that value. They keep parroting the sentence that they have provided refund and the ticket is resolved.
Does NCB transfer percentage depend on the time when the transfer is done after new insurance has been issued?

[Zappo]

I think you are doing this wrong. Operative word being, I think. I have not seen how you have arrived at your calculation of what should be the amount of refund.

Here's what I would do if I had to do this calculation. Go to the insurer's website. Retrieve your insurance document using the policy number. Hopefully the change has been duly noted in your policy by now (it takes a few days). First thing to see is what is the NCB mentioned in it now. If it clearly mentions 25% that means they have put it on record. Next is to look into the calculations to see how they have worked that NCB discount into your new premium calculation.

Remember, you can't take the pre NCB premium amount for the policy and deduct 25% from it directly. NCB applies only to the Own Damage portion, minus any other discounts, taxes etc that are baked into your final premium. My take, and this is my personal opinion, as long as your policy has 25% NCB duly showing up get a move on. A few thousands (as long as it's not obnoxiously high) will always happen as they are not looking for your business anymore. So they will not apply all the discounts and other discretionary rebates they would have otherwise given you. However as long as they have transferred the NCB as is you can always move to a different insurer next year who works out to your advantage.

Burning too much energy on this one will just kick in the law if diminishing returns, IMHO. :-)

[staraphd]

Originally Posted by Zappo

I think you are doing this wrong. Operative word being, I think. I have not seen how you have arrived at your calculation of what should be the amount of refund.

Here's what I would do if I had to do this calculation. Go to the insurer's website. Retrieve your insurance document using the policy number. Hopefully the change has been duly noted in your policy by now (it takes a few days). First thing to see is what is the NCB mentioned in it now. If it clearly mentions 25% that means they have put it on record. Next is to look into the calculations to see how they have worked that NCB discount into your new premium calculation.

Remember, you can't take the pre NCB premium amount for the policy and deduct 25% from it directly. NCB applies only to the Own Damage portion, minus any other discounts, taxes etc that are baked into your final premium. My take, and this is my personal opinion, as long as your policy has 25% NCB duly showing up get a move on. A few thousands (as long as it's not obnoxiously high) will always happen as they are not looking for your business anymore. So they will not apply all the discounts and other discretionary rebates they would have otherwise given you. However as long as they have transferred the NCB as is you can always move to a different insurer next year who works out to your advantage.

Burning too much energy on this one will just kick in the law if diminishing returns, IMHO. :-)

I don't see the NCB updated yet on the policy. Below is the own damage section. From my insurances all these years I have always seen NCB to be a flat discount on the Net own damage Premium as I have never availed any special discounts. I have been refunded approx 2500.

[Zappo]

So then my first thought will be to get them to add the 25% NCB endorsement into your policy. Tell them you need the policy doc with 25% endorsement on it. That will clearly show you how they have calculated it.

[ghodlur]

Originally Posted by staraphd

Does NCB transfer percentage depend on the time when the transfer is done after new insurance has been issued?

NCB % does not change until the completion of the policy year, however if the NCB is being calculated mid year then the pro rata basis calculation is effected by Insurance co.

Ideally when you bought a new car and sold the old car you should have applied for the NCB certificate which you could have used to get the refund of the NCB amount or use it during next years renewal.

[staraphd]

Originally Posted by Zappo

So then my first thought will be to get them to add the 25% NCB endorsement into your policy. Tell them you need the policy doc with 25% endorsement on it. That will clearly show you how they have calculated it.

The rule says, policy document cannot be modified after it has been issued. The changes will show up only on renewal when the new policy is issued. Although they do provide a separate endorsement document that shows the applicable NCB %. However, that endorsement document just shows the refund values and not any calculation.

[staraphd]

Originally Posted by ghodlur

NCB % does not change until the completion of the policy year, however if the NCB is being calculated mid year then the pro rata basis calculation is effected by Insurance co.

They are not even saying that it is pro rata calculation, although that's exactly what I feel seeing the refund amount. And I am fine with that too. I do not understand their reluctance to show me the math and close the chapter.

Originally Posted by ghodlur

Ideally when you bought a new car and sold the old car you should have applied for the NCB certificate which you could have used to get the refund of the NCB amount or use it during next years renewal.

Yeh, there were some technicalities involved for which I got harassed by the insurer and the broker and the communications and escalations went on for months after which the insurer provided the NCB certificate.

[thanixravindran]

Originally Posted by staraphd

I don't see the NCB updated yet on the policy. Below is the own damage section. From my insurances all these years I have always seen NCB to be a flat discount on the Net own damage Premium as I have never availed any special discounts. I have been refunded approx 2500.

Attachment 2632971

NCB is applicable on the base own damage premium only. So they should have calculated on it and added GST on it. But I guess in that case it is 2000 only but they refunded 2500. Better have an email communication with them. Else they may create issues during claim.