Page 180 - Motor Insurance Ebook IC 72

The Insurance Times

vehicles the premium is around Rs. 100/- per
person.

Q. 9 What is 'NO CLAIM BONUS." Describe the
rules relating to No Claim Bonus.

Ans: No claim bonus is earned only on the Own damage
section of the Package policy covering all classes of
vehicles except Motor trade policies. For policies
covering Fire &/or Theft premium only. An insured
becomes entitled to NCB only at the renewal of the
policy after the expiry of the full duration of twelve
months. No claim is incorporated in the policy as per
the prescribed table.

The NCB follows the fortune of the original insured
and not the vehicle or the policy. In the event of transfer
the new owner is not entitled to the NCB and hence the
proportionate amount will be recovered; if the new owner
is not presently entitled to or enjoying NCB.

It can be allowed on a substituted vehicle. However the
substituted vehicle must be of the same class as the
vehicle on which the NCB has been earned.

In the case of an individual owner, in the event of death
of the individual, where the custody of the vehicle
passes to the spouse and/or children and /or parents

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