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Harnoortv. New Delhi : We all love getting discounts on products and services. A discount feels good, almost like a proper reward. Did you know you can get a discount on your car insurance too? This discount is called 'No Claim Bonus' or NCB. NCB is paid to you by the insurance company as a percentage of deduction from your insurance premium if you do not make any claim during the insured year. Understanding the NCB calculation in motor insurance is important if you want to save money on your premiums.
How is NCB applied to your insurance premium?
No claim bonus is provided to you only after the successful completion of the insurance policy year. The discount you get is pre-defined and applies to the premium you pay for renewal of insurance after the expiry of your current insurance term.
The insurance provider automatically adjusts your premium according to the NCB you have earned. The NCB calculation for car insurance continues to increase – up to a maximum of 50% – after each consecutive year you go without making an insurance claim.
To understand how NCB is calculated
The NCB percentage is fixed and does not fluctuate among the insurance providers present in the market today. To help you understand the NCB calculation in car insurance renewal, here is an example. If you get one year of coverage without raising any insurance claim, you will get a 20% discount on the premium you pay when you renew your insurance policy.
So, if your initial premium amount is Rs. 1000, then after you complete one year without raising your claim, your premium is reduced by 20%. Thus, you will have to pay only Rs.800 for renewal of your insurance policy (if you are taking the exact same coverage and the insurance rates have not changed).
What are the different slabs of NCB?
The table below shows the different slabs of NCB calculation for car insurance –
The number of consecutive years completed without a claim is accumulated as a percentage of NCB
Completion of first year 20%
25% for two years
45% for full four years
5 years full 50%
After completion of fifth year, NCB does not increase and remains at 50%. Many insurance providers also offer NCB calculators to help you calculate your car insurance no claim bonus.
Advantages of NCB in Car Insurance
NCB has many advantages. Let's see some of them -
Promotes safe driving:-If you don't have an accident, you don't need to raise an insurance claim. As a result, willingness to obtain NCB and pay lower premiums encourages safer driving.
Helps to save money:- NCB goes up every year as you don't claim and you can pay relatively less for your coverage year after year.
Accumulated NCB is transferable:- NCB is not affected even if you change your insurance provider during policy renewal.
Disclaimer: For more details of risk factors, terms and conditions please read the sales brochure carefully before completing the sale. *Discount amount will be subject to vehicle specification and place of registration
Here's how to check your vehicle insurance status online
The Motor Vehicles Act 1988 makes it mandatory for every motorist to have a valid motor insurance policy for driving on the roads of the country. Failure to comply with these requirements can result in heavy fines. Now, a motor insurance policy needs to be renewed periodically to remain active. And it's very easy to forget to keep track of your insurance renewal date. Fortunately, you can now check your car insurance status online.
The process of checking your auto insurance online is very simple and can be done in a few clicks. There are three ways to get your policy details. Let's look at each one -
To get your insurance policy details using the Insurance Information Bureau (IIB) web portal:
Getting your auto insurance policy details is extremely easy using the IIB website. However, note that the IIB web portal has a database of insurance policies issued after 1 April 2010.
Following are the steps to retrieve your policy details
1st step:
Visit the IIB web portal.
Step 2:
Fill the required details like vehicle registration number, date of accident, your name, email id, address and anything else required.
Step 3:
Click on 'Submit'.
Step 4:
After clicking the submit button, the insurance policy corresponding to the details you have entered will be displayed on the screen.
If for any reason you are unable to check vehicle insurance status online, try starting the search again by entering your vehicle's engine and chassis number.
Getting your insurance policy details using VAHAN e-services:
This is an alternative method by which you can check the details of your vehicle insurance policy. Here are the steps to follow while using the web portal offered by VAHAN e-services.
1st step:
Visit the website offered by VAHAN e-services. Click on 'Know your vehicle details' button.
Step 2:
Enter your vehicle registration number and verification code.
Step 3:
Click on the button labeled 'Search Vehicle'.
Step 4:
After clicking on the 'Search Vehicle' button, the expiry date of your insurance policy will be displayed on the screen along with other details related to your vehicle.
To retrieve your insurance policy details using QR code:
IRDAI has made it mandatory for all insurance policies to have a QR code. These help the traffic police officers to verify the authenticity of your insurance details. If you have a photo or copy of the QR code associated with your insurance policy, you can scan it and check car insurance status online.
Your insurance provider can also help
If you need details about your auto insurance status, check online at the insurance company's website. You can access important information about your coverage by logging in as a customer. If you have any other queries you can contact the insurance company on their helpline number. Always remember to renew your vehicle insurance policy on time to get all the benefits it offers.
Disclaimer: For more details of risk factors, terms and conditions please read the sales brochure carefully before completing the sale. *Discount amount will be subject to vehicle specification and place of registration]
Overview of Standalone Own Damage Car Insurance
Various types of unexpected events can cause damage to a car. Natural calamities and accidents can cause damage that can weigh heavily on you as a car owner. A separate personal damage car insurance plan will help you in such situations by covering you for the expenses incurred due to damage to your own vehicle.
In India, purchasing third-party car insurance is mandatory to legally drive your vehicle on the country's roads. A standalone OD policy is not mandatory; However, it can really be very helpful in protecting you from huge financial loss if your car is damaged due to some calamity.
What does standalone own damage insurance cover?
Let's understand a little more about how OD car insurance works by looking at what this type of policy covers. A typical own damage policy will offer coverage against the following:
Accidental damage
Theft of an insured vehicle
Irreparable damage caused by fire, lightning, explosion or self-ignition
Damage caused by natural calamities such as floods, earthquakes or landslides
If your car is damaged due to any of these incidents, you can make a personal damage car insurance claim with your motor insurance provider. Nowadays, filing a claim is easier than ever. You can log on to the insurance company's website, fill a form, check the damage to your car and get the repairs done after the claim is approved.
Extend your coverage with add-ons
You can also increase the protection you get from your own damage cover with the help of add-ons. Zero depreciation cover, consumables cover, return-to-invoice cover and roadside assistance cover are some of the add-ons you can consider.
Exceptions to coverage
As mentioned earlier, personal injury car insurance only covers damage to your own vehicle. This means it will not cover third-party liability. In addition to those exclusions, here are some other things your own damage policy won't cover:
Claims made while driving without a valid license or under a learner's license without the supervision of a licensed driver
Claims for drunk driving incidents
Damage caused by negligence of owner
Damage caused by war or nuclear damage
Damage due to normal wear and tear
Who Should Buy Personal Injury Insurance?
If you currently only have third-party motor insurance, it is advisable to purchase a personal damage car insurance policy. In this way, you increase the coverage you get in unfortunate events like road accidents, man-made calamities or natural calamities.
Calculation of premium for own loss insurance
The premium you pay for your personal loss car insurance plan is determined by various factors, including the age and model of your car, the city you live in, the IDV (Insured Declared Value) and the fuel used.
You can easily get a quick calculation of the premium you can expect to pay by using the car insurance calculator tool on your insurance company's website.
Disclaimer: For more details of risk factors, terms and conditions please read the sales brochure carefully before completing the sale. *Discount amount will be subject to vehicle specification and place of registration
Vehicle Scrappage Strategy - 101: Everything You Need to Know About Upgrading Your Car
As Indians, we love our vehicles and hold on to them for years. Although we are emotionally attached to our cars and our bikes, using a vehicle over the years adversely affects the environment and increases carbon emissions. To encourage us to get rid of old vehicles when they are past their prime, the Government of India introduced a vehicle scrappage policy in Budget 2021. The idea behind this policy is to reduce the impact of old vehicles and the pollution caused by these vehicles to the environment. Let's learn more about it in this article.
What is a vehicle scrappage policy?
The vehicle scrappage policy is an initiative to frame new rules for the maintenance of private and commercial vehicles that will create a new ecosystem to gradually and steadily rid the polluting, unfit vehicles from the central database of Indian vehicles. Vehicles will be scrapped at automated testing centers and government-registered vehicle scrapping facilities across the country.
Under the vehicle scrapping policy, private vehicles older than 20 years and commercial and government vehicles older than 15 years will be destroyed or scrapped. As per the policy, old vehicles must undergo and pass a fitness test before re-registration, failing which they will be cancelled.
Highlights of Old Vehicle Scrappage Policy Announcement
Vehicle owners who opt to scrap their vehicles will get the scrap value of the vehicle, which is 4 to 6% of the ex-showroom price of the new vehicle they wish to purchase.
New vehicle registration fee will be waived for owners who present vehicle scrapping certificate while purchasing new vehicle.
New vehicle owners will also get a motor vehicle tax concession of up to 25% for non-transport vehicles and 15% for transport vehicles.
The government has further advised vehicle manufacturers in India to offer a 5% discount on new vehicle purchases to buyers who present a vehicle scrappage certificate.
Classification of vehicles under scrappage policy
Government Vehicles: Vehicles owned by the Central and State Governments of India will be scrapped if they are more than 15 years old.
Commercial Vehicles: All commercial vehicles are required to undergo fitness test after completing 15 years. If they pass the test, they will be renewed for 5 years; Failing that, the vehicle will be scrapped.
Private Vehicles: All private vehicles will have to pass a fitness test on completion of 20 years. If they pass the test, they will be renewed for 5 years; Failing that, the vehicle will be scrapped.
Vintage Vehicles: Vintage vehicles are more than 50 years old. The government has exempted these vehicles for now under the auto scrappage policy.
Advantages of a vehicle scrappage policy
The main objective of the car scrap policy is to reduce the burden on the environment and boost the country's economy. Here are some benefits.
Protects the environment by significantly reducing air pollution.
More employment opportunities are created in the automobile sector
The automobile sector benefits through increased sales and profits
Vehicle owners get a lot of benefits in the form of waivers and discounts for opting for scrappage
Frequently Asked Questions
What is the primary reason for bringing a vehicle scrap policy?
The primary reason for introducing a vehicle scrap policy is to reduce environmental pollution and provide growth opportunities to the automobile industry.
What does a fitness check include?
A fitness check involves a thorough inspection of your car's safety equipment, including seat belts, airbags, pollution tests, headlight alignment checks, indicators, brakes, engine components, rusting parts, etc.
When will the policy take effect?
Private vehicles over 20 years old will be deregistered from 1 June 2024 and commercial vehicles over 15 years old from 1 April 2023.
Disclaimer: For more details of risk factors, terms and conditions please read the sales brochure carefully before completing the sale. *Discount amount will be subject to vehicle specification and place of registration
'Apart from the rising prices of petrol and diesel, the major reasons for opting for electric cars are:
Electric cars are becoming more popular today than ever before. At some point, you may have considered shopping for an electric car for its many highlights. Today, vehicle owners consider electric cars as a viable everyday means of transportation, which offer many benefits beyond the obvious benefit of saving money on skyrocketing fuel prices. The steady decline in fossil fuels and the rapid depletion of natural resources have led many consumers to turn to eco-friendly vehicles such as electric cars. In this article, we explain what electric cars are and the main reasons to choose them.
What are electric cars?
Electric cars are four-wheeled vehicles that run on electricity generated using renewable sources. These cars have electric motors and cost less to run because they have fewer moving parts to maintain and don't use fossil fuels. These properties make electric cars incredibly environmentally friendly. Electric vehicles use large traction battery packs to help power their electric motors. Car owners can plug the battery pack into a wall outlet or similar device to charge or power up the vehicle for daily commutes. Depending on the size of the electric car, you can drive up to 100 kilometers with a fully charged electric car.
Advantages of electric cars
Some of the best benefits of electric cars include:
Saves you money
Electric vehicles are more economical and ergonomic than gasoline powered vehicles. They run on electricity generated from renewable energy sources at cost-effective rates compared to petrol and diesel, whose prices keep increasing every few months. Electric cars also have a lower total cost of ownership and are more efficient for long-term use.
Reduce carbon emissions
Among the many benefits of electric cars, one of the most important is that they significantly reduce carbon emissions. Electric cars produce less global warming pollution than regular vehicles. Furthermore, those electric vehicles powered entirely by renewable energy produce virtually no emissions.
Great driving experience
Electric cars offer smooth, responsive acceleration and deceleration, making them a pleasant experience to drive. As the car comes with an inbuilt, low center of gravity, it helps drivers with responsive handling and driving comfort.
Low maintenance
Since electric cars have very few moving parts, there is less chance of problems related to vehicle breakdowns. Batteries come with an extended warranty period and you don't have to spend a lot of money while servicing the vehicle.
encourage
To promote a greener planet, governments around the world are offering special incentives to electric car owners. These range from subsidies on the actual cost of the vehicle to waivers in registration fees and exemptions from paying road tax. The government is also setting up car charging stations in states with a large number of electric car users, allowing them to recharge car batteries at a nominal charge.
Reduces noise pollution
Electric vehicle engines rarely produce noise, which directly reduces noise decibels. In a country where honking and removing silencers is seen as a right of way, the low noise of electric vehicles is a much-needed change that helps reduce noise pollution.
Let's Go Electric
With all set to create the ideal ecosystem for the best electric cars, consumers are slowly but surely getting ready to embrace this change. Initial limitations of electric vehicles such as high cost, performance issues, limited range, long charge times and lack of charging stations have faded over time. Now may be the best time to join the electric vehicle revolution. Also, make sure you familiarize yourself with the car insurance requirements and policy types for electric vehicles as they may differ from fuel-based vehicles.
Disclaimer: For more details of risk factors, terms and conditions please read the sales brochure carefully before completing the sale. *Discount amount will be subject to vehicle specification and place of registration