Welcome to Mycarhelpline Community Blog

Car Insurance NCB Certificate Process. How to Transfer NCB to New Car Online

Car Insurance NCB Certificate Process. How to Transfer NCB to New Car Online

Here is Detailed Process of Car NCB Certificate Issuance to Transfer Process. Know how to transfer NCB from Old Car to New Car


Car Insurance NCB Transfer Process

Any Comprehensive Car Insurance comprises of 2 Components :- Own Damage and 3rd Party.

While Own Damage covers Insurance related to Car Theft, Accidental Claims, 3rd Party Insurance pertains to to cover the loss incurred to co-passenger or another party with whom you met an accident.

NCB is No Claim Bonus and is like a discount offered by Insurance Companies to the Insured on Car on Own Damage Part for driving safe by not making a claim in entire 1 year of Policy. You will get different Tier of NCB Discount

  • 20% for Not making a claim for 1 Year
  • 25% for 2 Year
  • 35% for 3 Year
  • 45% for 4 Year
  • 50% for 5 Year (maximum limit)

and thus will be eligible maximum 50% Discount (for 5 years or more)

Do you have an NCB Discount on your existing Car and looking to transfer same to New Car.


When Can NCB be Transferred to New Car

Only in below Scenario can NCB be transferred when

  • You wish to Cancel in Existing Car Insurance
  • You have Sold your Existing Car 
  • Your Old Car is Scrapped


Scenario 1 (Cancelling Existing Car Insurance)

Although insured can place request for NCB Certificate issuance to Insurance Company, but Cancelling Car Insurance is a very rare scenario.

Insurance Company will only issue NCB Certificate only if another Valid Policy Submitted to them (yes, as long as car is not sold -  you need to get another Insurance Policy issued for car, if not comprehensive then atleast in 3rd Party) to place cancellation request.

The reason is as per IRDA Rules - no Car allowed to be driven without Valid Insurance.

So if you wish to cancel existing Car Insurance - you need to submit 

  • Request Letter for Cancellation of Existing Car Insurance Policy and issuance of NCB
  • Your Existing Car Insurance Policy, Scanned RC Copy
  • Copy of New Insurance Policy (with  atleast 3rd Party)


Scenario 2 (Your Old Car is Scrapped)

If in case your Old Car is not usable and scrapped, you need to provide requisite proof after scrap from Government authorized scrap vendor on letterhead with proof of Photos, acknowledgement of Car Chassis been removed and removal of registration from RTO records

Once same done - can submit proof to Insurance companies for Policy Cancellation and issuance of NCB Certificate


Scenario 3 (You Sold your Old Car to Dealer Showroom)

In Case you have sold your Old Car to an Authorized Car Dealer Showroom then can submit in

  • Letter to Insurance Company that you have sold your Car 
  • Dealer Sale Certificate that they have bought your Old Car
  • Scanned Copy of RTO Form 29, 30 for Transfer to Dealer with there Stamp and Sign

Once Same submitted then Insurance company will provide in 2 Options whether

  • This Old Insurance need to be transferred to Dealer Showroom  (in that case NCB Recovery difference needs to be paid and Policy will be transferred) and NCB Certificate will be issued


  • Cancel in Policy and issue NCB Certificate. 

NCB Certificate issuance may take anywhere upto 2 Weeks post submission of above


Scenario 4 (You Sold your Old Car to an Individual or Broker or Small Dealer)

In Case you have sold your Old Car to an Individual as Direct Buyer then can submit in

  • Letter to Insurance Company that you are selling Car / sold car 

Now, Insurance company will provide in 2 Options whether

  • Cancel Existing Policy or transfer Car Insurance to another Buyer (in that case NCB Recovery difference needs to be paid and Policy will be transferred to new Buyer)
  • Have to submit in copy of Transferred RC (as and when available)

NCB Certificate issuance may take anywhere upto 2 Weeks post submission of above.


Scenario 5 (You just wish to Transfer NCB to New Car without Selling Old Car)

Well, if you just wish to transfer No Claim Bonus from Old Car to New Car without selling Old Car then there is no as such provision which allows transfer of NCB unless 

  • Your Old Car is Sold
  • Your Old Policy is Cancelled

If you wish to buy New Car now and later on sell Old Car then Process is the Buyer at time of buying in a New Car has to pay Full Insurance Premium or buy Car Insurance as per available scheme from Dealer without any No Claim Bonus.

Once the Old car is sold and transferred in name of buyer, the Seller can then first apply for NCB Certificate from Insurance Company (by submitting Transferred RC and request letter - which is what valid for 3 years)

Once NCB Certificate obtained, then make an application to Insurance company with Endorsement of NCB on the New Car Insurance Policy. Post the same endorsed, submit in a copy of NCB Certificate along with Request Letter, Original Insurance Policy, New Insurance Policy with Endorsement of NCB, KYC Documents and Cancelled cheque for refund on account of excess collection as NCB Discount was not applied in New Car Insurance (at time of initial purchase). Insurance company will refund in excess amount as charged by applying NCB Bonus discount in the Car Insurance in generally 5 to 7 working days.

Its important to note that NCB - No Claim Bonus Discount can not be transferred to any other Individual other than owner himself. Also - Insurance Policy should not be expired at the time of making application for NCB Discount.

So - if you seek NCB Discount on your Old car to New Car (after purchase of New Car) - its also important to check with Insurance company for any specific time period under which the Transferred RC can be provided.

However, please note that this is not a standard practice, and is all at Insurance company discretion. Recommended to check with Car Insurance company for same. 

Maruti XL6 Review. Positives and Negatives of Maru...
Honda Jazz 2021 Official Review: Positives and Neg...

Important: If you seek advise or recommendation, pls raise query in Car Forum instead of posting in comments



Post a Comment. Make your Voice Heard
Sunday, 03 July 2022

Captcha Image