Transferring your no-claim bonus to a new car in India: slabs, rules and documents

By Arjun Ramanarayanan, IndiCar · Published 4 November 2026 · Tips

Your NCB of up to 50% stays with you, not the car. You can move it to a new car if you renew within 90 days and the new car is in your name and of the same class.

Yes, you can move your no-claim bonus (NCB) to a new car. It belongs to you, not to the old car. It is worth up to 50% off the own-damage part of your premium. There are three conditions: the new car must be registered and insured in your name, it must be of the same class as the old one, and you must not let more than 90 days pass after the old policy expires.

The NCB slabs

The discount rises with each consecutive claim-free year, up to 50% after five years. The slab structure is standardised across all insurers in India under IRDAI, so the percentage does not depend on which company insures you.

Insurers also describe the same ladder by renewal: 20% at the first renewal, 25% at the second, 35% at the third, 45% at the fourth, and 50% at the fifth and every renewal after that.

What the discount actually reduces

NCB cuts only the own-damage (OD) portion of the premium. A 50% NCB means half off the OD portion, not half off the whole policy.

In one worked example, a 20% NCB saves Rs 3,000 and the bill comes to Rs 12,000. Your saving depends on how large the OD portion of your new car's premium is, which brings in the car's price and the cover you choose.

Who can carry the NCB to a new car

The NCB is linked to the policyholder, not the vehicle. That shapes every rule on transfer:

• You must be the registered owner of the new car.
• The new car's insurance must be in the same name as the policy that earned the NCB.
• The new car must be of the same class as the car on which you earned the bonus.
• The NCB can also move to another insurer, so switching companies when you change cars does not cost you the discount.

The flip side: when you sell your old car, the NCB does not pass to the buyer. It stays with you. If a buyer expects your 50% to come with the car, it will not.

The 90-day window

You lose the NCB if your policy is not renewed within 90 days of expiry. General Regulation 27(i) of the India Motor Tariff sets this rule. It allows no NCB after a 90-day gap, with one exception: a 3-year rule for vehicles that are sold or laid up.

This is where most people lose the discount. A five-year bonus takes five clean years to build and one missed deadline to lose. If there is a gap between selling the old car and taking delivery of the new one, deal with it before the 90 days run out.

Selling the old car first: the reserving letter

If you sell your car without buying a new one straight away, you are entitled to an NCB reserving letter. It is also called an NCB certificate or retention letter. It is valid for three years from the expiry of your previous insurance.

• Apply for it within 90 days from the date of sale.
• Keep it until you buy the next car.
• When you insure the new car, the certificate lets you apply your NCB to its OD premium.

This is the route the 3-year exception in the tariff is built for. Of all the steps in a car change, it takes the least paperwork and protects the most money.

Documents and steps to transfer

You need two documents: a request letter asking for the NCB to be transferred, and the new car's registration certificate. The insurer then issues the new car's policy with the NCB discount applied.

• Write a request letter to transfer the NCB to the new car.
• Attach the new car's registration certificate.
• If you are moving to a new insurer, provide the renewal notice or a confirmation letter from the previous insurer.
• Check that the new policy shows the correct NCB percentage.

General Regulation 27(f) of the India Motor Tariff covers a change of insurer. The new insurer may allow the NCB rate the previous insurer would have given, on the strength of that renewal notice or confirmation letter. It is expected to write to the previous insurer within 21 days, and the previous insurer to reply within 30 days.

Worked example: insurance on a Mahindra Scorpio N

Insurance is a large line on a new car's on-road price, and it is the line your NCB reduces. On IndiCar's 12 October 2026 price list for Mumbai with individual registration, the cheapest of 27 Scorpio N variant and powertrain combinations is the Z2 Petrol Manual 7-seater at Rs 16,54,792 on-road.

On-road charges above ex-showroom come to Rs 2,85,791 on this variant, and insurance at Rs 1,02,815 is the second-largest of them after road tax. Your NCB applies to the OD portion of that Rs 1,02,815, not to the whole figure and not to road tax. The range tops out with the Z8 L 4WD Diesel Automatic 7-seater at Rs 31,30,136 on-road. You can see every variant on the Scorpio N prices and configurator page, or price another car with the on-road price calculator.

IndiCar gives you the written itemised breakup, including the insurance line, before you book, so you can see where an NCB transfer will apply.

Sources: NCB in Car Insurance: Get No Claim Bonus - ICICI Lombard, How to Transfer No Claim Bonus to a New Car?, No Claim Bonus (NCB)

Buying a new car through IndiCar

IndiCar arranges new-car purchases in Mumbai, Navi Mumbai and Thane. You book a new car on IndiCar at the on-road price shown on its car page, with the full price breakup: ex-showroom, RTO registration, insurance, TCS and FASTag. You book online with a refundable reservation, and IndiCar sources the car from partner dealer stock and handles the registration, insurance, paperwork and delivery.

You deal only with IndiCar from quote to delivery. Your phone number is never passed to a dealer, and you do not need to take the quote to a showroom to negotiate. See on-road prices and book or get a WhatsApp quote on +91 85916 41004.

Frequently asked questions

Does my no-claim bonus move with my car when I sell it?

No. NCB is linked to the policyholder, not the vehicle, and it does not pass to the new owner when you sell the car. It stays with you.

Can I use my NCB on a new car from a different insurer?

Yes. NCB can be transferred to another insurer. Under General Regulation 27(f) of the India Motor Tariff, the new insurer may allow the NCB rate against a renewal notice or confirmation letter from the previous insurer.

How long can I go without a policy before I lose my NCB?

90 days from the expiry of the old policy. After that the NCB is lost, except under the 3-year rule for vehicles sold or laid up.

What if I sell my car and buy the next one much later?

Apply for an NCB reserving letter within 90 days from the date of sale. It is valid for three years from the expiry of your previous insurance, and you use it to apply the NCB to the new car's own-damage premium.

Does a 50% NCB halve my whole premium?

No. It is 50% off the own-damage portion of the premium only, not half of the total.

What documents do I need to transfer NCB to a new car?

A request letter to transfer the NCB and the new car's registration certificate. The insurer then issues the new policy with the applicable NCB discount.

Tags: no claim bonus, car insurance, ncb transfer, new car buying, irdai