If you drive a car in India, you ought to be having a new car insurance from an online service provider or other. Anyone having a car insurance is also aware that they need to pay a premium annually for asking compensation in case of an accident.
Yes, the insurance service provider comes to the rescue of the policyholder to bear the financial loss arising out of an unfortunate mishap. One can ask for a claim to his/her insurance company and get the compensation and save from paying on own.
However, when you no longer make any claim during the tenor of your new car insurance policy, you can grab the benefits of the No Claim Bonus (NBC).
What is a no claim bonus?
The no claim bonus (NBC) is nothing but is a motivation or encouragement provided by the insurance service provider to those drivers who drive responsibly. The award is provided in the form of a bonus which the drivers get if there are no claims made by them.
They can use the no claim bonus at the time of renewing the new car insurance policy. At the time of the new car insurance policy renewal, the no claim bonus amount is deducted from the total renewal amount (payable premium). Hence, the policyholder pays only a discounted amount to settle the balance amount and it helps save money.
However, before you pledge to drive safely and enjoy the no claim bonus at the time of the policy renewal, you need to consider some points. Let’s know more about this!
- No claim bonus amount
The no claim bonus amount provided by the insurance companies is in the range of 20-50% and keeps increasing every year. You can claim a bonus of 20% in the 1st year of the new car insurance.
- Don’t claim small amounts from an insurance agency
As you know that the no claim bonus benefit if offered for each year in which a driver has not asked for a claim. Nonetheless, you lose the no claim bonus if you make a claim to the insurance company in a year when your policy is active. Hence, before making any claim from the service provider – you should think about the claim that you will make and the loss of no claim bonus that you will lose for asking for the claim. Example – if you are making a claim for Rs.5,000, you will also lose a no claim bonus of Rs.6,000. Even if you make a claim, you will get Rs.5,000 but in this case, you will also lose Rs.6,000. During such cases of involving smaller amount as the claim, it is better not to make the claim and pay on your own. Like this, you can keep your no claim bonus intact and redeem it later when you have a bigger claim to make in the future.
- NBC is applicable per person and not per car
Another thing that you may not be aware of is that the no claim bonus is applicable per person and not per car. Hence, if you plan to sell the car after 2 years, and buy a new one – you can still claim the advantages of the no claim bonus. Also, for not making any claim during the first 2 years, you can claim a no claim bonus of 25% and claim the 25% NBC even after the purchase of a new car.
The Bottom Line
You went through some meaningful information on no claim insurance for your new car insurance policy and even generally. You will now be able to deal with a no claim bonus with the car insurance policy now even with more confidence.