How to Get NCB Certificate?

An NCB certificate is a document that states the no-claim bonus you earn on your insurance policy. You may require the certificate in two scenarios:

• If you wish to transfer your no-claim bonus to a policy for new car insurance.

• If you want to transfer your insurance to another insurer.

Here are the steps that you must follow to obtain a no-claims discount certificate:

Contact the Insurance Provider

The first step to obtaining the NCB certificate is to contact your insurance provider. You must get in touch with your previous insurance company and request them for the certificate.

Provide the Required Information

Your insurance company will require some details to give you the no-claim bonus certificate. They may ask you for the policy number, vehicle details, personal information, etc. You must help them with the required information so they can process your request.

Claim History Evaluation

Once you raise the request, your insurance company will evaluate your policy's claim history to ensure you are eligible for a no-claim bonus certificate.

Raise an Official Request

Once your eligibility is determined, you must submit a formal request for the issuance of a no-claims discount certificate.

Documentation

The next step is to submit the documents as required by the insurance company. It will help them to process your request as per the protocol.

Obtain the Certificate

Once you submit the documents and meet all the requirements, the insurer will issue the NCB certificate, which will also include the NCB percentage.

To obtain an NCB retention letter, you must submit the following documents to the insurance company.

Sale Letter (Buyer Seller Agreement in form 29 and form 30)

The sale letter is a document issued by the Regional Transport Office stating that you have sold your car to a new owner. It is a transfer agreement that transfers all the car's liabilities to the new owner. If you are transferring your NCB to a new car, you must submit the sale letter to the insurance company.

Previous Year Policy or PYP in Insurance

Another essential document that you must submit is the policy documents issued by the previous insurer for the previous year. These documents may be necessary if you are transferring your policy to a new insurance company.

Declaration Letter

It is a document issued by the previous insurance company. The letter contains all the terms and conditions that you must acknowledge. You must ensure that the letter contains correct and accurate information, as any misleading information can lead to claim rejection by the new insurance company.

Transfer Application

If you are transferring your policy to another insurer, you must also submit a transfer application to the insurance company. It is a request letter to grant you an NCB transfer so that you can get a discounted premium on the new policy.

• Some other documents that you may have to submit are

• A copy of the booking receipt in case of a new car purchase

• A copy of the ownership transfer certificate

• A copy of the car delivery receipt, etc

The following example will help you understand how a no-claim bonus is calculated.

Suppose Mr A opts for his own damage cover insurance for his vehicle. His insurance premium is fixed at ₹25000 per annum.

For the first claim-free year, he is entitled to get an NCB of 20%. Thus, when he renews his policy for the second year, he will pay a premium of ₹20,000, as he will get a discount of ₹5000 (20% on 25,000).

This 20% bonus will continue to increase for each year that Mr A does not raise a claim. For five consecutive claim-free years, he will get a discount of 50% on his premium at the time of policy renewal.

Here are a few crucial facts that one must know about a no-claim bonus and NCB certificate:

NCB Applicability

A no-claim bonus is a discount offered by the insurance company to policyholders who do not raise any claims in a policy year. It can be used at the time of policy renewal. The no-claim bonus discount is not available for third-party insurance. It applies to comprehensive or own-damage insurance.

You can find out what is own damage insurance here.

NCB is Transferable

As an insured, you must be aware that your no-claim bonus is transferable. Whether you buy a new car or switch the insurer, you can obtain a no-claims discount certificate from the insurance company and utilise the discounts.

NCB Certificate Validity

The NCB certificate has a validity of three years from the date of issue. Therefore, once you receive the certificate from the insurance company, you must transfer it within three years to avail of the discounts.

NCB Certificate Download

Your insurance provider may also give you the option to download the certificate from their official website after you have completed all the formalities. You may log into your insurance account and download the certificate.

Discount Rates on No-Claim Bonus

You can enjoy up to 50% discounts on your renewal premium if you have accumulated a no-claim bonus on your policy. For each claim-free year, you get an NCB, and it accumulates year after year if you do not raise any claims. The NCB starts at 20% and can go up to 50%.

Retaining NCB

If you have earned a no-claim bonus on your insurance policy, you must retain it by renewing your policy before it expires. However, if you miss renewing the policy before expiry, you can still retain the bonus by renewing the policy within 90 days of the policy’s expiry.

Incorrect No-Claim Bonus Percentage

You must stay cautious and avoid writing any random percentage for the NCB while switching the policy to a new insurer. If you write an incorrect figure, the insurance company has the right to reject your claim. Therefore, you must provide the appropriate information about NCB and claim history to avoid any difficulty in the future.

NCB Add-On Safeguards the No-Claim Bonus

Opting for an NCB add-on cover is an excellent way to safeguard the no-claim bonus even if you raise a claim during the policy tenure. When you include this cover, you can raise a claim and still be eligible for an NCB discount on policy renewal.

No-Claim Bonus Termination

Your no-claim bonus will terminate in the following circumstances:

• If you raise a claim in the previous policy year, the NCB will not be applicable.

• If you do not renew the policy within 90 days of its expiry.

• If you buy a new car but do not transfer the NCB to the new car.

• If you switch to a new insurance provider but do not transfer the NCB from the previous insurance company.

No-Claim Bonus In Case of Accidents

When a car meets with an accident, the insured loses all of the no-claim bonus, irrespective of the claim amount and the expenses borne by the company. However, if the accident takes place due to the fault of a third party and the insurer recovers a part of the expenses, then some of the NCB may get saved.

No-Claim Bonus In Case of Stolen Car

Even in the case of a stolen car, the NCB is lost. However, if the owner does not raise a claim, the no-claim bonus will be restored.

Here are some of the benefits of a no-claim bonus, which you can enjoy if you do not raise petty claims on your insurance policy:

Makes Premium Affordable

A no-claim bonus provides you with discounts on insurance premiums for your policy, making them more affordable. You can earn a discount of 20-50%, which will reduce the premium amount of the policy for the coming years.

Encourages Safe Driving & Car Maintenance

NCB is a reward from the insurer to those policyholders who drive responsibly and maintain their vehicles. It encourages the insured to continue safe driving and take care of their vehicle.

Given to Policyholders

The NCB is associated with the policyholder and not the insured vehicle. Thus, even if the policyholder sells his vehicle, the no-claim discount remains with him, which he can transfer to the new vehicle with an NCB certificate.

Saves Money

The no-claim discount reduces the premium cost for the next policy year. Thus, an insured can save money that would have otherwise been spent on renewing the policy.

NCB in car insurance is a reward for the policyholder, which provides him a discount on the next year's premium. A no-claim bonus can be transferred by obtaining an NCB certificate from the insurance company using the steps mentioned above.

However, one must be cautious while investing in four-wheeler insurance and choose a renowned provider such as TATA AIG to get maximum benefits from their insurance policy. We offer affordable insurance plans that do not stress your finances and also provide wider coverage. You can compare our car insurance renewal price and find the best quotes.

Our insurance plans offer a host of benefits, such as a cashless claim facility, add-on options, no-claim bonuses, an easy purchase and renewal process and so on. We have a network of 6900+ network garages, providing professional repair services.

Additionally, for questions like what is own damage insurance, or what is IDV in insurance, contact our expert customer care executives at +91-9136160375 or email us at customersupport@tataaig.com.