Page 182 - Motor Insurance Ebook IC 72

The Insurance Times

There is also a practice to allow lesser NCB on substitute
vehicles belonging to different sub-classes e.g. a Maruti
800 private car is substituted by a Mercedes Benz, though
the NCB entitlement is 50% on substitution the
transferee insurer is allowing only 35%

If a vehicle is sold and not replaced immediately the
NCB earned could be claimed within three years of
cancellation for any fresh insurance. In practice insurers
are now allowing lesser NCB than entitled keeping in
mind sub-classes involved. In the two-wheeler and
commercial category the discount and entitlement period
for such cases have also been curtailed

NCB is allowed provided the policy is renewed within
90 days of expiry of previous policy.

Q. 10 Define the compulsory deductibles under different
motor insurance policies?

Ans: Claims under OD section of policies covering all classes
of vehicles are subject to a compulsory deductible as
follows:
I. PRIVATE CARS:
1. Not exceeding 1500 cc deductible Rs. 500/-
2. Exceeding 1500 cc deductible Rs. 1000/-

II. MOTORISED TWO WHEELERS
Deductible Rs. 50/-

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