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If you do not claim for a year, you will be eligible for the No Claim Bonus benefit at the time of renewal. You will get a discount on the premium rates at the time of renewing your car insurance policy. However, many of you might not know you can use NCB of your old car insurance policy to reduce your new car insurance premium. When you buy car insurance for your new car, you can reduce the premium, all you need is little planning. For instance, if you have a 50% NCB on your previous car insurance, you can get a huge discount on the insurance premium, approximately Rs 9, 700/- on Rs 7.75 lakh of car's IDV. Today we are going to talk about how you can use NCB of your old car policy to reduce the premium of the new insurance. But before that let's look into a couple of scenarios in which you can use it:

First Scenario


If you have got the NCB on your previous car, and now you have bought a new car. In this scenario, you can retain the NCB that you have earned form your old car's insurance. You can sell your car and insurance policy to a new buyer. After that, you can buy a new car with new car insurance. You can use your retained NCB while buying car insurance and get a huge discount on the premium rates.

Second Scenario


If you have got the NCB on your previous car, and now you have bought a new car, but you also want to retain your old car. In this scenario, you can gift/ sell your old car to someone in your family. This way, you can retain the NCB from your previous car and use it to get a discount on the premium while buying car insurance for your new car. Now you will ask why is there a need to sell your previous car. Well, as long as you are the owner of your previous car, you won't be able to use the NCB earned on that car to get a discount on the premium paid for your new car's insurance policy.

In both scenarios you can transfer NCB of your previous car, to get a discount on the premium of the new policy for your new car. However, now you will ask, how long you can retain the NCB. After issuance of the NCB transfer certificate, you can retain your NCB for 3 years. To retain your NCB, you need to apply for an NCB transfer certificate. You need to provide your insurer with compulsory documents related to the sale of an existing vehicle, and Form29/30. You should keep a copy of your last insurance policy. The NCB transfer certificate that you will get from your insurer, you can use it for the next 3 years to get premium for your next car insurance. You should also know that it is not necessary to buy car insurance from the same insurer that provided you with an NCB transfer certificate. You can use this certificate as proof to buy car insurance from any insurance provider. So, go online to find car insurance quotes for your next car.​