Buying
a car has become increasingly convenient with easy finance options available.
Various financial institutions offer a car loan facility as high as up to 90%
of the value of your car. It helps in achieving one’s dreams of owning a car. A
car is no more luxury but a necessity. Travelling to work becomes comfortable
with the flexibility to move at your own pace. Apart from work, you can enjoy
road-trips with family and friends in that dear car of yours.
But
owning a car is not all fun, you need to maintain it too. Apart from getting it
serviced at timely intervals, there are other legal aspects that one needs to
fulfil like obtaining a pollution certificate. One might say insurance is also
compliance, but in fact, it is a necessity to protect you and your car at a
minimal cost.
When
you avail a car insurance cover, it is not in each policy period that you will file
a claim for damages. At such times, a benefit is passed to the policyholder in
case of no claims. It is called a No Claim Bonus (NCB).
Let
us learn more about NCB -
●
No Claim Bonus is
available in the form of concession - No claim bonus can be availed in the form
of a reduction in premiums at the time of car insurance renewal. A no claim bonus ranges between 20%
up to a maximum of 50%. At each renewal date, it goes on increasing subject to
its upper limits. Your first claim-free year will earn you a bonus at 20%,
which grows at 5% for every subsequent year without claims.
●
No Claim Bonus is
associated with the policyholder - There is a misconception that the NCB is
related to the vehicle for not making any claims, whereas the truth is
different. A no claim bonus facility is associated with the individual policyholder.
Knowing this, you can ensure that you avail continued benefits of an NCB even
in case you change your car. You have to intimate the insurer at the time of
renewal of your car insurance about the change in the vehicle. Doing this, the
insurance company passes on the benefits to your next vehicle too. A thing to
note is that NCB concession is applicable with respect to the own damage
portion of your premiums and not the third-party liability.
●
Third-party
insurances do not have No Claim Bonus - What this means is that the benefit of
not claiming any damages during the year is available in case of a
comprehensive policy only. Third-party car insurance plans do not have any
concession for not claiming during the previous policy year at the time of car insurance renewal.
●
Avoid filing claims
for small repairs - Making an insurance claim for minor repairs can be trivial.
You might be with the notion to utilise the available insurance cover but
carrying out a cost-benefit analysis is essential. At times, incurring the cost
of repairs is beneficial than letting go a no claim bonus. Make sure you
compare the expenses towards repairs and accordingly file a claim for
insurance.
Remember
the points mentioned above while using a car insurance premium calculator. It can help in approximating to the NCB value, so you
get the best insurance cover for your car.
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