No claim bonus: - No claim bonus is generally given by the motor insurance companies to the insured vehicles which did not take any claim throughout the year. So the insurance companies give some amount of relief for encouraging re insured as well as one can see a gift for driving and caring vehicle safely throughout the year.
How much the no claim bonus: - This is different policy to policy but generally no claim bonus is 10-15% of the policy.
How can one redeem the no claim bonus: - one can only adjust on the policy renewal.
Effect on the sale of car: - No claim bonus certificate is a very good thing to offer to the buyer of your car. The reason for this is as follows.
1- This tells that your car is not accidental or didn’t get any serious maintenance.
2- Insurance companies also offer discount on the insurance premium which has no claim bonus. Insurance companies generally give 20% on the first year, 30% on the second and 40% on the third year insurance premium if there is no claim on the vehicle.
3- One can demand more for his car as you are offering something very useful.
One needs to pay the remaining part of no claim bonus for transferring the policy. Like if you are selling the car on 1 July and the policy expires on 31 December. The seller needs to pay the remaining 6 months no claim bonus to the company. After which only the buyer can get full benefits of no claim bonus.
Transferring insurance policy for the vehicle is lot of time consuming and need a lot of paper work. Insurance policy is not transferred as transferring the vehicle. Only third party insurance is transferred. So transferring insurance policy is complex, but very important.
So in short never transfer the vehicle without informing the insurer company and take into account the no claim bonus factor which selling or buying the old vehicle.
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