NCB Protection Cover in Car Insurance

Benefits of SBI General NCB Protection Car Insurance Cover

The No Claim Bonus (NCB) offers a reward for claim-free years, reducing your car insurance premiums with each year you don’t make a claim. SBI General’s NCB Protection Cover allows you to retain your NCB even if you need to file a claim, protecting your discount from decreasing or resetting. Here are the top benefits of SBI General’s NCB Protection Cover:

• Financial Savings: By maintaining the NCB discount, policyholders can save significantly on their insurance premiums during renewal. For example, if a policyholder had a 30% NCB and filed a claim, without protection, their discount would drop to zero upon renewal; with protection, they retain that 30% discount.
• Higher Resale Value: Since your NCB remains unaffected, potential buyers will find your car more attractive due to the lower insurance costs.

What’s Covered in NCB Protection Car Insurance Add On?

The NCB Protection Cover provides peace of mind by securing your NCB under certain circumstances.

Here’s what is generally covered in SBI General’s NCB protection in car insurance:

• Small or Partial Claims:

  If you need to make minor repairs or a partial claim, the NCB Protection cover ensures that your No Claim Bonus on car insurance remains unaffected.

• Retention of NCB:

  The primary benefit of the NCB Protection add-on is that it allows policyholders to retain their accumulated NCB percentage even after filing one or two claims during the policy year. This means that despite making a claim, the policyholder can still enjoy the discount on their premium during renewal.

• Discounts on Premiums:

  With the NCB Protection, policyholders can continue to receive discounts on their own damage premium during renewal, which can be as high as 50%, depending on the number of claim-free years prior to making a claim.

Each insurer may have slight variations in coverage, so it’s crucial to review the policy terms to understand fully what’s protected.

What’s Not Covered in NCB Protection Car Insurance Add-On?

Although the NCB Protection Cover offers good benefits, it doesn’t apply to every situation. Common exclusions include:

• Limit on Claims:

  The NCB Protector typically allows for the protection of the NCB for vehicle insurance only a limited number of claims (usually one or two) within a policy year. Exceeding this limit will result in the loss of the NCB benefit for subsequent renewals.

• Mid-Term Changes:

  Most insurers do not allow for the addition or removal of the NCB Protector during the policy term. It must be included at the time of purchasing or renewing the policy.

• Type of Coverage:

  The NCB Protector can only be purchased with comprehensive car insurance policies or standalone own damage covers. It is not applicable with third-party insurance policies, which do not offer an NCB benefit.

Be sure to understand these exclusions when considering NCB Protection as an add on cover.

Who Should Opt for NCB Protection Cover?

NCB Protection is ideal for certain types of policyholders:

• Those with High NCB Discounts:

  If you’ve accumulated a high NCB discount over several years, NCB protection ensures that one unfortunate incident won’t set you back.

• Owners of High-Value Vehicles:

  For expensive cars where repairs can be costly, NCB protection helps maintain premium discounts, preserving savings over time.

• Drivers in High-Risk Areas:

  If you live in an area prone to natural calamities or theft, NCB protection adds an extra layer of security.

How is NCB in Car Insurance Calculated?

The No Claim Bonus on car insurance starts at 20% after one claim-free year and can go up to 50% after five years. Each year without a claim increases your NCB percentage, leading to significant savings on your premium. Here’s a typical calculation:

• 1 Year No Claim: 20% Discount
• 2 Consecutive Years No Claim: 25% Discount
• 3 Consecutive Years No Claim: 35% Discount
• 4 Consecutive Years No Claim: 45% Discount
• 5 Consecutive Years No Claim: 50% Discount

An NCB Protection Cover ensures that these accumulated discounts remain safe, even in the event of a claim, providing a stable and predictable premium structure.

When Does the No Claim Bonus in Car Insurance Expire?

The No Claim Bonus in motor insurance is sensitive to policy renewal timelines. Generally, NCB expires if:

• Policy Lapses for More than 90 Days:

  If there’s a gap of more than 90 days between renewals, the NCB is usually reset.

• Transfer of Ownership:

  When you sell your car, the NCB doesn’t transfer to the new owner, as it’s tied to the driver, not the vehicle.

How to Buy or Renew NCB Protection Car Insurance Cover?

To add or renew your NCB Protection Cover with SBI General:

1. Visit the SBI General Insurance website or an authorized agent.
2. Choose the NCB Protection add-on during the car insurance policy purchase or renewal process, ensure you meet the eligibility criteria, as some policies require claim-free years before adding NCB protection.
3. Complete Payment pay for the add-on to activate it as part of your coverage.

This straightforward process allows you to secure your NCB along with your primary policy coverage.

When is No Claim Bonus in Car Insurance Applicable?

The NCB is applicable in these circumstances:

• Full Policy Term Completion:

  NCB is awarded for each completed claim-free year.

• Renewal with the Same Insurer:

  Renewing your policy with the same provider typically applies NCB discounts automatically.

NCB is a reward for responsible driving and careful car ownership, reflecting your reduced risk as a driver.

When is No Claim Bonus in Car Insurance Not Applicable?

Certain conditions prevent NCB from applying:

• Claim in the Policy Term:

  If a claim is made within the term, NCB for vehicle insurance that period is forfeited.

• Policy Lapses Over 90 Days:

  An expired policy results in lost NCB if not renewed promptly.

• Policy Transfer to New Vehicle:

  When transferring your insurance to a new vehicle, the NCB may not carry over unless specifically requested.

How to Transfer a No Claim Bonus to a New Car Insurance?

Transferring NCB is possible when switching insurers or purchasing a new car. Here’s how:

1. Obtain the NCB Certificate:

   Request an NCB certificate from your current insurer.

2. Submit to New Insurer:

   When buying a new car insurance policy, submit this certificate to apply for the discount.

3. Verification:

   The new insurer will verify and transfer the bonus to your new policy.

This transfer enables you to retain your NCB, benefiting from your claim-free history even if you change vehicles or insurers.

Conclusion