hello friends today we will discuss about auto insurance as per vehicles insurance act, every person who own a vehicle, is liable get insured you all either buy or renew insurance online or through an agent you should take note of one thing, after the expiry of 1st year's insurance but before the renewal that, if you haven't filed or claimed any insurance claim during the previous year then insurance company offers a discount in next year's renewal premium which is called no claim bonus or ncb and the rate of this ncb can be ranges from 20% to 50%
this ncb applies only on "own damage premium" cover auto insurance has two types of covers 1st is own damage cover this insurance covers damages arises due to fire,explosion,earthquakes,floods and theft or terrorism. 2nd is third party cover third party insurance is a statutory requirement and in this cover, all kind of physical injury or property damages caused to third party by you, is covered means it covers your legal liability now if you only have taken third party insurance then you won't be able to get ncb
now, lets check the slabs of ncb after 1 claim free year you will be eligible to get ncb@20% on own damage premium and you can get upto 50% ncb subject to prior to that previous 4 years you haven't claimed or filed insurance let's take an example.. assume you have a car and its idv after 1st year is rs.4 lakh and its own damage premium comes to rs.12000 and @20% you can save rs.2400 provided you haven't filed or claimed any claim in the previous year here i would like to tell you one more thing
that as and when you renew your vehicles insurance please keep in mind that how much idv you are going to get against the premium you are paying assume you have a 2 wheeler for which renewal premium is rs.900 approx and against that you are going to get only rs.19000 idv but it might be possible that some other company in lieu of extra rs.40-50, offers more idv cover. and, now if you too take care of such small things then you can save some money out of the renewal's insurance
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