Benefits of No Claim Bonus On Car Insurance
If you conduct a poll to determine the words that bring maximum happiness to the hearts and minds of working class Indians, the word “bonus” will surely rank No. 1! Let us take a look one such bonus – the No Claim Bonus in Car Insurance policies and its many benefits.
What is a no-claim bonus car insurance?
In the insurance business, No Claim Bonuses (NCBs) are often referred to as “fortunes followed by the insured.”
No Claim Bonuses in car insurance are discounts that are provided to encourage and incentivize safe driving on the roads and are essential elements of all Comprehensive Car Insurance plans offered by any insurance company.
The first thing to understand about No Claim Bonus is that this discount is not for the vehicle as it is commonly believed but for the insured who drives the vehicle without making any claim during the policy duration since the purchase date of insurance.
Drive safe to save big!
After the first claim-free year, a discount of 20% will be provided on the next premium and after every subsequent year, this discount will increase by a certain percentage provided you do not make a claim during the policy duration. This discount slab can increase up to a maximum of 50% with each successive claim-free year!
It is important to note that the No Claim Bonus is applied to only the basic ‘Own Damage’ component of the Comprehensive car insurance plan and does not hold for third party liability components.
Did you know the benefits of No Claim Bonus on car insurance by HDFC ERGO?
Since the No Claim Bonus is awarded for the driver and not the car, in the event of the sale of your current vehicle, it can be transferred to the next car you buy within 3 years of sale.
Upon purchase of the new vehicle, all you need to do is provide a written request for NCB reserving letter to ensure that your existing No Claim Bonus is carried over to your new car. Supporting documents shall be required to process your request
If you are transferring your car insurance policy from a different company to HDFC Ergo, you can easily transfer the No Claim Bonus accrued on the previous policy to the new one at HDFC ERGO.
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