NCB certificate from previous insurer

[Dr Dinesh P S]

I have renewed my motor insurance with HDFC ergo . Previously it was with reliance insurances. There was no claim in the last year. After processing my insurance, now ergo is asking me to produce the NCB CERTIFICATE from the previous insurer which they denied for unknown reasons. When I checked with reliance , they said I am eligible. And I AM .
What I should do?

[reji]

As a procedure, I believe, every insurance company needs to verify with your previous insurer on the NCB benefit, which can only be done basis you confirmation letter.

[Dr Dinesh P S]

Is it our responsibility?

[madhu70]

If you want to get the benefit, then yes. Ask Reliance for a copy of the NCB.

[VVidya · Accepted solution]

Hi Dr Dinesh,

Usually when you renew your car insurance with another insurance company, the new insurer would check the NCB eligibility with your previous insurer. This is done basis the previous year policy details provided by you; either a copy of the previous policy / Renewal notice which was submitted by you or details provided when you purchased the policy online. If the details are falsified by your previous insurer, then the new insurer will request you to share the NCB certificate to revalidate the details or alternatively, may ask you to make the differential payment on account of the revocation of NCB discount.

 In your case, seems the details have not been validated and hence the new insurance company is requesting for an NCB certificate. I recommend that you provide the NCB certificate from your previous insurer as soon as possible otherwise the new Insurer may initiate the recovery of differential premium or shorten the duration of your policy commensurate to the premium receieved by you.