How to Use a No Claim Bonus to Get Discounts on Your New Car

Sometimes when we do good work, our efforts are appreciated with a reward or a gift. We live in an age, where a simple monetary gain or discount is the best gift that we can think of. And such monetary rewards can be obtained through simple daily activities such as better driving.

When we say driving, we aren’t talking about driving as a job, but rather seeing out the insurance without getting into any trouble. Having insurance does not mean you have a license to drive impetuously, expecting the insurance company compensate the damages due to your own carelessness.

Safe driving leads nil accidents with major damages. Once the car insurance ends, you will be rewarded by your insurance provider.

What is No Claim Bonus?

It is a bonus provided to the policyholder when no claim is filed during the entire insurance tenure. The use of this bonus is only limited to car insurance and can be used to get discount on the premium of a renewable policy. However, this bonus can also be used to get discount on the insurance policy of a newly purchased car. You can avail the No Claim Bonus easily by following the instructions below:

To avail the benefits of No Claim Bonus on your new car, you have to sell your old car before you buy a new one. The car can be sold to any authorized dealer or a third party individual. However, it is important to obtain necessary documents like the delivery receipt or the sale deed, as it can be used for verification purposes.

Once, the car has been sold and you receive the necessary documents, the next step is to contact your insurance provider to notify them about the car’s sale and you want to avail No Claim Bonus benefits for the new car. The best way to inform your insurance provider can be through an e-mail, as you can send the necessary documents and mention the details of existing insurance at the same time.

After you initiate the process of No Claim Bonus, there are some documents that you might have to keep handy throughout the procedure.

  1. Copy of delivery note received for sale of old car.
  2. A copy of booking form for the new car.
  3. A copy of insurance policy for the old car.

How to put the No Claim Bonus to work?

When you submit the application, the insurance company will take two or more days to issue the No Claim Bonus certificate. This certificate can be used as a proof of the existing NCB and on the base of this certificate, you will be able to claim the benefit of the No Claim Bonus on the purchase of your new car. You can also get a substantial amount of discount on the policy.

Almost everyone can apply for a No Claim Bonus, but the criteria of approval may differ from provider to provider. There are few things that you have to keep in mind before you apply for a No Claim Bonus . For example, to transfer the NCB to a new car, you have to take the insurance of the new car from the same insurance provider.

If you have queries on the types of Car Insurance do feel free to drop us a message at PL-India Motor Insurance and we shall revert at the soonest. Alternatively, do email us at


[erforms id=”763″]

Leave a Reply