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How to Transfer No Claim Bonus (NCB) of Your Motor Insurance Policy to a New Car

One of the most beneficial features of a vehicle insurance coverage is the No Claim Bonus (NCB). By giving you a discount on the premium for the next year, it compensates you for driving safely and not filing any claims during the insurance year. Even better, the NCB is associated with the policyholder rather than the car. This implies that you can move your NCB to your new car if you choose to sell your old one and get a new one.

We’ll guide you through the process of transferring your No Claim Bonus from the motor insurance policy for your previous car to a new one in this blog post.

1. Understand the NCB Transfer Process

The policyholder, not the vehicle, is entitled to the No Claim Bonus. This implies that you can keep the NCB when you buy a new auto insurance policy, even if you sell your previous vehicle. But you need to buy a new insurance policy and sell your old automobile at the same time as you start the NCB transfer.

The procedure is quite simple and guarantees that your safe driving practices will result in a lowered insurance rate for your new vehicle.

2. Sell Your Old Car and Inform the Insurer

You must sell your old car before transferring your NCB. Notify your current insurance company of the sale of the vehicle and ask them to discontinue your policy. To demonstrate that you no longer own the car, you might also need to give them the selling documentation, such as the RC transfer documents or the sales deed.

The insurance company will offer an NCB Certificate or an endorsement letter at the time of cancellation, confirming the NCB you have accrued.

3. Obtain an NCB Certificate

Your insurer will provide an NCB Certificate (or a proof document reflecting the NCB you earned) as soon as they are notified of the sale. This certificate is crucial since it serves as legal documentation of your No Claim Bonus, which you can use to the insurance policy for your new vehicle.

You can utilize the NCB certificate throughout the time that passes between selling your old automobile and purchasing a new one because it is often good for up to three years.

4. Purchase Insurance for Your New Car

You will require a new insurance policy as soon as you get a new vehicle. Tell the new insurance company that you want to transfer your No Claim Bonus at this point. To demonstrate your qualification for the discount, the new insurer will need to see the NCB Certificate.

The NCB will be applied by the insurance provider, and you will receive a lower premium in accordance with the proportion of NCB you have accrued.

Generally, the NCB rates have the following structure:

  • 20% off after one year without making any claims.
  • 25% off after two years.
  • 35% off after three years.
  • 50% off after five or more years without a claim.
  • 45% off after four years.

5. Ensure a Smooth Transition

As the NCB is being transferred, ensure that:

  • The name on the new insurance policy and the NCB certificate match.
  • The transfer is completed in the allotted amount of time, which is usually ninety days after the previous insurance expires.
  • When the old automobile is traded in for the new one, there are no gaps in insurance coverage.


Being proactive guarantees a seamless application of your NCB discount.

6. Transferring NCB When Switching Insurers

You can still transfer your NCB when changing insurance companies, whether you’re driving a new automobile or the same one. The procedure stays the same: to receive the relevant discount, provide the NCB Certificate to the new insurer.

It’s always a good idea to examine several auto insurance policies when changing insurers to see which one provides the best coverage and allows you to keep your accrued NCB.

7. Things to Remember

For the policyholder, NCB is: The NCB is yours and can be transferred to a new automobile even if you decide to sell the current one.
It is convertible to a new vehicle: As long as the NCB is registered in your name, you can transfer it whether you purchase a new or used vehicle.
Duration of validity: Since the NCB certificate is often good for three years, you don’t have to buy a new automobile right away after selling your old one.

In summary

One wise option that might drastically lower your insurance price is transferring your old car’s No Claim Bonus to your new one. The procedure is straightforward and entails notifying your present insurance provider, acquiring an NCB Certificate, and giving it to your new provider when purchasing a policy for your new car.

You may maintain the advantages of your safe driving practices and make sure that your premiums don’t increase when you move automobiles by transferring your NCB.

What do you think?

Written by Jessica

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