Transfer of no-claim bonus

Vijay Kumar, President, Bajaj Allianz General Insurance said that the driver of the car receives no-claim bonus if he doesn’t make any claims. So the hoarded NCB doesn’t change if the petrol car is exchanged for a new diesel or CNG car.

A) Buying a new diesel/LPG/CNG car

The cubic capacity of the engine of the car determines the NCB transfer eligibility. Kumar says, “If the CC of the new car engine exceeds a certain limit (in terms of engine CC) in comparison to the old car, the policyholder will not be eligible for the NCB transfer.” So if the person upgrades his car to Mercedes Benz from Maruti 800, then the person won’t be able to carry the NCB benefits.

He also says that sometimes they notice the driving pattern of the driver and depending on that they provide him or her with the NCB and so it determines the driver’s discipline. But on the basis of his discipline projected once, it’s difficult to make any assumptions that he or she will continue to maintain that discipline especially while driving a bigger car with a high cubic capacity.

If the owner of the vehicle upgrades his vehicle from 1000 CC to 2000 CC then the NCB can be carried forward but if it’s above 2000 CC then the benefits might not be transferrable.