no claim bonus

[vivek_sof14]

Few days back bought a preowned Car..Insured from HDFC Ergo only.As the insurance validity was finishing on Oct 17 and paper was to be deposited in RTO for Ownership transfer..the seller told me to buy insurance.I bought it but it was in Seller's name as paper was on transfer process.After few days back Ownership transferred and he called me up and said the policy has been cancelled as he has availed his NCB of 50%.He said i have to take fresh policy.Plz suggest what can be done or my old premium amount got wasted?

[Vishal Sharma · Accepted solution]

Sorry to know that you have had this much Inconvenience. 

First please know the logic of NCB.

IRDA's Handbook says '' No claim Bonus is the benefit accrued to an insured for the NIL claims during the previous policy period. As per current norms prevalent, it ranges from 20% on the own damage premium (and not on Liability premium) and progressively increases to maximum of 50% based on successive claim free years. If however, a claim is lodged, the No Claim Bonus is given to insured and not to the insured vehicle. Hence, on transfer of the vehicle, the insurance policy can be transferred to new owner but not the NCB. The new owner has to pay the difference on account of NCB for the balance policy period. The original owner can, however, use the NCB on a new vehicle purchased by him.''

You can read more from this link :  http://www.policyholder.gov.in/uploads/CEDocuments/Motor%20English.pdf

Now that you have bought a car, and that Insurance is compulsory, you will have to buy Motor Insurance without previous owner's NCB. 

And as your policy is cancelled, the premium paid will be refunded back to you in the same Bank account, or why dont you call their customer support call center, use this link https://www.hdfcergo.com/customer-care/customer-care.html and ask them about your premium amount.