Full Form Of Ncb In Insurance
The full form of MCB in insurance is No Claim Bonus. In fact, it is a kind of reward that is provided by the insurance company to the insured when he does not file any claim in the policy year. In No Claim Bonus, the insured can get a discount in premium on renewing the insurance in their next policy year.
This No Claim Bonus increases every year if the insured does not file any claim in the policy year.
What Is No Claim Bonus In General Insurance ?
Generally, there are two important segments of the insurance industry – life insurance and general insurance. Insurance that does not come under the purview of life insurance is classified under general insurance. Thus vehicle insurance, travel insurance health insurance etc. are the types of general insurance. The full form of NCB is No Claim Bonus and it is applicable in both life insurance and general insurance.
A No Claim Bonus plays an important role in vehicle insurance as well as health. But in other insurance sectors NCB is not as popular as it is in vehicle insurance and health insurance. At present, more people are choosing auto insurance and health insurance. Through NCB, he can reduce the cost of his premium. When he renews his policy, he can get a good discount in the premium through No Claim Bonus.
What Is No Claim Bonus ( NCB ) In Car And Bike Insurance ?
If you drive your vehicle safely during the policy period and do not file any claim during the policy period and you renew the policy on time ( within 90 days of policy expiry) at the end of the policy period . If you get it done, you are provided the benefit of No Claim Bonus by the insurer. In this, the insurer offers the vehicle owner a discount on the premium when renewing his vehicle policy. This discount provided in premium is called No Claim Bonus in bike and car insurance.
This No Claim Bonus increases if you do not submit any claim continuously during the policy term. You can avail No Claim Bonus up to 50%.
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Benefits Of NCB In Car & Bike Insurance
- Positive Rewards :
NCB (No Claim Bonus) is a positive reward that rewards a person for being a responsible driver and vehicle owner. Through this, you can fulfill the responsibility of a responsible driver very well.
- Connected to you and not to your vehicle :
NCB (No Claim Bonus) is related to you as an individual and not your vehicle. This means that no matter which vehicle you own, as long as you renew your vehicle policy before the end of the policy term, you can continue to enjoy the benefit of No Claim Bonus for your vehicle insurance. .
- Savings on Insurance Premium :
Everyone wants to get discount while buying anything. You can get a discount of 20% to 50% on your annual vehicle premium through No Claim Bonus.
- Easily Transferable :
If you are changing your insurance company or vehicle due to any reason then you can easily transfer NCB through a simple process. For this, you just have to keep in mind that you have to transfer your policy to another insurance company before the expiry of the current policy so that you can take advantage of NCB.
How Does NCB Work In Car And Bike Insurance ?
The cost of everything increases with time. In such a situation, while buying a vehicle insurance policy, the increasing cost is definitely in the mind of the person. But through the No Claim Bonus, one can avail a discount on the vehicle insurance premium. It is important to know about how a No Claim Bonus works.
A No Claim Bonus works like a rewards system. You get a discount of up to 20% if you have not made any claims during your first vehicle policy year and have renewed your policy within 90 days of your policy expiry. After this, if you do not submit any claim for the second consecutive year, then you are provided with an additional 5% no claim bonus. If you do not file any claim for 6 consecutive years then this no claim bonus can increase up to 50%. Therefore, by driving your vehicle responsibly without submitting any claim, you can reduce your vehicle insurance policy premium by up to 50% through NCB (No Claim Bonus).
How To Transfer NCB To New Insurance Company?
Transferring an NCB (No Claim Bonus) to a new insurance company depends on whether you are buying your new vehicle insurance policy online or offline.
- Offline:
If you are buying your new insurance policy through agent or offline then you need to transfer your No Claim Bonus. For this you need to submit buyer seller agreement Form-29 and Form-30 along with an application form requesting transfer of NCB (No Claim Bonus) to your insurance company. After this the insurance company will issue an NCB certificate. You will have to submit this certificate to the new vehicle insurance company.
- Online:
If you buy your new auto insurance policy online then you do not need to do anything. All you have to do is provide your correct NCB and old policy number and insurer name online. Your new insurance company will then manage the rest of the process itself.