Use the NCB of the old vehicle insurance policy to reduce the premium of the new vehicle insurance policy


The PNE is a benefit accruing to the policyholder if no claim is made during an insurance period. Thus, at the time of renewal, you benefit from a discount on the premium (PNE benefit) which starts from 20% and increases to a maximum of 50% over each loss-free period up to 5 years. However, you should know that the premium discount can only be claimed on the own damage (OD) part of the comprehensive automobile policy.

When the policy is renewed, the NCB benefit is paid to the owner of the auto insurance policy, not to the insured vehicle. The NCB is never transmitted to the new owner of the vehicle. Hence, this becomes the reason why the vehicle owner can transfer the NCB to their new vehicle policy.

You can keep the SOP earned on your old or existing vehicle’s insurance policy and have it transferred to a new vehicle’s policy by selling or transferring your old / existing vehicle.

For example, let’s first say that you earned 50% of the NCB on your existing 5 year old vehicle and now you have sold that vehicle and bought a new vehicle. In such a case, when selling the vehicle and transferring the vehicle’s insurance policy to the new owner, you can easily keep the SOP earned on your old vehicle’s insurance policy by requesting a ‘transfer certificate. PNE ”to the previous insurer. You should also submit all relevant documents related to the sale of the existing vehicle, etc., immediately after the sale of the vehicle to the new owner.

Now, by submitting the NCB transfer certificate to the new insurer (assuming you have purchased a new policy from another insurer for your new vehicle), you can have the NCB transferred to the new vehicle’s insurance policy and benefit a considerable discount on premium rates. .

However, if you don’t plan to buy a new car right away, you can still claim the NCB on your new vehicle if it’s purchased within three years. In fact, you can keep your PNE for a maximum of 3 years after the issuance of the PNE transfer certificate by the previous insurer.

Second, there may be times when you do not want to sell your 5 year old car but want the NCB from that old vehicle to be transferred to the new vehicle in order to lower the premium for your new vehicle since the policy premium rates for. a new vehicle are higher than the premium rates offered by insurers for an older vehicle. In such a situation, you will have to transfer your old vehicle to another member of your family. In other words, you have to change the ownership of the old vehicle to someone else within the family members. This is because you cannot use the SOP earned on the old vehicle to get a discount on the premium paid for a new vehicle until you continue to own the old vehicle.

Sanjiv Bajaj, Co-Chairman and Managing Director of Bajaj Capital, said: “You can transfer the NCB from your private vehicle policy (provided it is sold) to a new private vehicle of the same class for the same owner. However, you cannot switch from one vehicle category to another to transfer the SOP. This means that you cannot transfer the PNE accumulated on the two-wheeler contract to a new automobile insurance contract.

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