A valid NCB certificate is proof of your safe and responsible driving. In other words, it is an endorsement of your claim-free history, and an incentive to maintain it that way. When you sell your car, you can use the discount to purchase a better car insurance for your next vehicle.  An NCB certificate is a document that shows your NCB percentage earned in the past years. The best part of earning an NCB is that it belongs to you and not your car. Even if you sell your car, you will not lose out on the bonus. It will not be transferred to the buyer. Also known as NCB reserving/retention letter, the NCB certificate is valid for three years. This indicates when you buy a new car within three years, your NCB discount needs to be transferred to your new car insurance.

How can I get an NCB certificate?
After acquiring a car insurance you will get an NCB certificate. It is now your decision whether or not you want to make claims within the policy year. In case you apply for it, the NCB certificate benefits will not be available for you the next year. However, if you don’t avail it for the entire year, you will be eligible to receive the benefits. 

How to transfer NCB from one car to another? 
The NCB certificate transfer process is quite easy. Follow the steps below to transfer your NCB to a new car. 
1. Request for the NCB certificate from the insurer you are now insured with.
2. Next, get your old car sold.
3. Purchase a new car and get car insurance.
4. Submit the necessary documents to the new insurer. This will include the sale deed, KYC documents, NCB certificate, and RC of the new car. 
5. Request for an NCB transfer to deal with the premium for the new policy.

Necessary documents for an NCB transfer
You need to attach the following documents listed below to complete your application. Some of the NCB certificate transfer documents include:

  • Insurance policy papers
  • Invoice copy when you sold your old vehicle
  • Copy of the insurance policy on the old vehicle. 

Once the aforementioned paperwork is submitted, the no claim bonus gets transferred to the new vehicle. Additionally, based on your current NCB certificate, a discount of up to 50% will be applied to the insurance premium for your new car.

If you are wondering about transferring NCB certificate online, you need to inform your insurer about your existing NCB. Consequently, your new insurer will get in touch with your old insurer to help you transfer your NCB from one car to another. 

Wrap up
The NCB certificate transfer process is quite easy. If you have acquired NCB you can apply for an NCB transfer. All you need to do is inform your insurer and ask them to transfer your NCB to your new car.