Car Insurance: It is necessary to insure every person buying a car. It is mandatory according to the rules to take a third party insurance cover to compensate for the damage done to someone or another person on the road or your property with your vehicle, while there is an On Damage Policy only to compensate for the loss to the vehicle. Both of these can be taken either separately or in a comprehensive policy. For additional benefits under car insurance, the customer can also add some add-on covers. One of these add ons is no claim bonus protection. But before knowing this add on, it is important to know what is the ‘no claim bonus’.
Actually, in case of car insurance, after the policy is started, if the owner of the car has not made any claim for the car in the past year, then in return, the insurance company gives the vehicle owner a discount in the insurance policy premium for the next year. . This is called a no claim bonus. If you do not claim every year or next year, every year continuously, then this exemption increases year after year. That is, the more the years without claims, the higher the premium rebate. However, this exemption cannot exceed 50 per cent.
Now know no claim bonus protection
If you have kept the No Claim Bonus Protection Add on the twin in a car insurance policy, then the advantage is that despite claiming the policy period, you will get the benefit of next year’s premium exemption. However, despite how many claims will continue to be exempt, this number will depend on the terms and conditions of the add-on. Generally, it is limited to 1 or 2 claims in the policy period.
Conditions related to NCB and NCB Protection Add On
- The benefit of No Claim Bonus Protection Add On cannot be availed by taking third party insurance alone. This is for the Damage Insurance claim. Therefore, to take advantage of this add on, it is important to have both third party and own damage insurance.
- When the vehicle is sold, its new owner does not get the right to no claim bonus.
- While renewing the insurance of the vehicle, you will get the benefit of no claim bonus facility even if the insurance company changes. For this, you have to present proof that you have not filed any claim on the ending policy.
- If the policy is not renewed within 90 days of expiry, you will not get NCB. Even if you have not taken a claim in the past year.
- If the vehicle owner changes his vehicle, that is, he buys a new vehicle, then he can also take advantage of NCB on the new vehicle.
When is NCB at risk
If the accident of the vehicle has happened and the driver is at fault then the no claim bonus can be rejected to some extent or completely. On the other hand, if the accident involves a third-party and the driver is not at fault, then no claim bonus will be affected. In the same way, if the vehicle is stolen then no claim bonus is at risk.