How to Lower the Premium of Your New Oriental Car Insurance Policy With No-Claim Bonus (NCB)?

Safe driving skill is something that you can be nurtured over time through patience, calmness of mind, remaining unhurried, and not panicking when caught up in a traffic snarl. You can avoid mishaps on the road while driving your car by respecting the traffic rules.

Despite your safe on-road behaviour if you meet with an unfortunate accident, your car insurance provider shall take care of the financial liability arising due to the same. You are rewarded with a no-claim bonus (NCB) if no accident happens during the insurance validity period.

NCB is a discount on the premium value offered in incremental mode during the renewal of your car insurance.

If you have purchased a new Oriental car insurance policy, you can avail of the NCB benefit to lower your premium liability. This post discusses how you may use the NCB for a new policy.

Claiming NCB on New Oriental Car Insurance Policy

Oriental Insurance Company has been offering the best car insurance policy at affordable rates since 1947. You can get comprehensive coverage of all on-road and car theft-related risks from Oriental, which prides itself on a high car insurance claim settlement ratio.

Reduce your premium amount payable while purchasing a new car insurance policy by claiming NCB in the ways discussed below.

1. Refrain from Making Minor Claims for Car Repairs in the Previous Policy

You can earn NCB and sustain its incremental value by

• Driving your car attentively without engaging in activities that can endanger your or others' lives or properties
• Not making car insurance claims for minor dents, nicks or scratches that can be repaired inexpensively

Avoiding such claims will help you retain your NCB benefits.

This also applies when switching the insurer for new car insurance from Oriental Insurance Company. The NCB in car insurance you are entitled to for making no claims during the previous policy period will be applied as a discount on the premium while buying new insurance.

2. Keep Increasing the Number of Claim-free Years

NCB is a reward that the car insurance company gives you for not making any claim during the previous year. NCB grows by an accumulation of percentage discount points for every claim-free year up to 50%.

So, if you don't make car insurance claims for five successive years, you are entitled to an accumulated NCB of 50%.

Once you enter the 6th year, the NCB of 50% is retained for every subsequent claim-free insurance year. When you decide to

• Change your present insurer and move to Oriental Insurance Company or
• Buy a new car and purchase the insurance policy from Oriental

You can transfer the collected NCB from the current insurer's policy to the Oriental car insurance policy and avail yourself of a maximum discount on the premium payable.

So, if you have driven your old car accident free for five or more years, you will get an NCB of 50% while purchasing a new car insurance policy from Oriental for your new vehicle.  

3. Renew Your Policy Within 90 Days

Your NCB can become NIL if you fail to renew your car insurance policy within 90 days from the previous policy's lapsing date.

So, suppose you have decided to renew car insurance online with a new policy from Oriental Insurance Company. In that case, you must do so within three months from the expiry date of the previous insurer's policy.

This will make you eligible for optimum NCB benefits.

Process of Claiming NCB on New Oriental Car Insurance Policy

The Insurance Regulatory and Development Authority of India (IRDAI) states that NCB belongs to the insurance buyer, not the car.

So, when you sell the car to another owner, she/he is not entitled to avail of the NCB discount on the following premium payable, although the insurance is transferred to their name.

Once you sell your existing car and decide to buy an Oriental car insurance policy for your new car, you need to

• Ask the previous insurer to issue you a reserving letter called the NCB transfer letter.
• Furnish to the insurer Form 29 and/ or Form 30 attesting the status of the sale of your previous car.
• Maintain a copy of the car insurance policy bought from the previous insurer.

After verification, the insurer will provide you with an NCB transfer certificate which shall be valid for a maximum of three years from the date of issue.

This certificate proves that you have sold your old car, and the NCB discount can be carried forward to the new policy.

Read more - Guide to No Claim Bonus in Car Insurance

Once you purchase the new car insurance policy from Oriental Insurance Company, you have to provide:

• NCB Transfer Certificate
• Old car's sale-related delivery note's copy
• New car booking form

This will form the ground for passing on the NCB benefit to you by Oriental.

Process of Claiming NCB on New Policy If You Have Not Sold Your Existing Car

If you are not interested in parting with your old car, you must transfer its ownership to a family member. NCB cannot be claimed on a new Oriental car insurance policy unless your name is removed from the ownership records of your old car. After this, you can request for NCB Transfer Certificate from your present insurer.

Key Takeaways

You can seamlessly claim an NCB discount on the premium payable for a new Oriental car insurance policy by following a few easy steps. Oriental extends all possible assistance to make the process hassle-free on your part.

Read more- Understand the Advantages of Purchasing an Oriental Car Insurance Plan