The Role of No Claim Bonus in Car Insurance Transfers

What is a No Claim Bonus (NCB)?

The No Claim Bonus is a reward offered by insurers to policyholders who don’t file any claims during the policy year. It starts at 20% for the first claim-free year and can go up to 50% for five consecutive claim-free years. This bonus is applied as a discount on the own damage premium, making your policy more affordable each year.

Contrary to popular belief, the NCB is not attached to the car but to the policyholder. This makes it a valuable benefit you carry with you—not your vehicle.

When Does the NCB Come Into Play During a Car Insurance Transfer?

Whether you're selling your old car or buying a new one, transferring your insurance (and NCB) is crucial. Here’s how NCB plays a role in different car insurance transfer scenarios:

Selling Your Old Car

If you're selling your existing car and have a claim-free record, you are entitled to retain the NCB. Here's what you need to do:

• Inform your insurer (or Jio Insurance Broking advisor) about the sale.
• Obtain an NCB Retention Letter or NCB Certificate from the insurer.
• This certificate is valid for up to 3 years, allowing you to use it when you buy your next vehicle.

Pro Tip: Always request this certificate as soon as your car ownership transfer is completed—it’s your claim-free track record, after all!

Buying a New Car

Bought a new car? Great! You can use the NCB from your old car to get a discount on the new car’s insurance. Share the NCB certificate with your new insurer (or broker, like Jio Insurance Broking) and apply it during policy issuance.

This ensures that your years of responsible driving are rewarded, even if the car is brand new.

Switching Insurance Companies

If you're happy with your car but want to change your insurance provider—maybe to get better coverage or better service—you can still retain and transfer your NCB.

At the time of switching:

• Share your previous policy and NCB certificate.
• The new insurer verifies your history and applies the eligible bonus.
• Jio Insurance Broking offers this as part of their service to make switching seamless and stress-free.

Common Myths About NCB Transfers

Let’s clear up some misunderstandings:

Myth: NCB cannot be transferred when selling the car.

Fact: You absolutely can transfer the NCB with proper documentation.

Myth: NCB is automatically carried over.

Fact: You must request the NCB transfer and submit a certificate or declaration.

Myth: If you miss applying NCB on a new policy, it’s lost forever.

Fact: It’s valid for up to 3 years after your last policy expiry.

How Jio Insurance Broking Simplifies NCB Transfers

Transferring NCB can seem daunting, but with the right guidance, it's a smooth process. Here’s how Jio Insurance Broking helps:

• Advisory Support: Expert advisors who guide you through documentation and policy comparisons.
• Quick NCB Certification: Assistance in obtaining NCB Retention Letters from previous insurers.
• Best Policy Matching: We compare policies across insurers and apply your NCB to the best-fit plan.
• Digital Convenience: Manage the transfer online with minimal paperwork.

Real-World Impact: A Quick Example

Rahul had insured his sedan for five years without any claims. He recently bought an SUV and connected with Jio Insurance Broking to get it insured. Thanks to his 50% NCB, Rahul saved over ₹8,000 on his new policy premium!

Now imagine throwing that discount away by not knowing how to transfer your bonus. That’s money lost—literally.

Protect Your Bonus Like an Asset

Your No Claim Bonus in car insurance is not just a discount—it's a badge of responsible driving. Whether you're transferring your policy to a new owner, switching insurers, or upgrading to a new car, don’t let your NCB slip through the cracks.

With the right support from experts like Jio Insurance Broking, you can ensure that every year of safe driving continues to pay off—mile after mile.

Looking to transfer your car insurance or retain your NCB? Connect with Jio Insurance Broking today and let our experts help you maximise your savings.