Transfer NCB to new car by cancelling old car’s insurance livemnt . Updated: 22 Jul 2014, 07:25 PM IST Abhishek Bondia You can apply for a NCB retention letter within 90 days from the date of sale

I have had a car for five years and plan to buy a new car. Can I transfer the NCB to my new car? —Rajeev Singh

You can transfer the NCB to a new car by cancelling the old car insurance. Upon cancellation, you will receive an NCB retention letter from your current insurer. Present the NCB retention letter to the new car’s insurer to avail the bonus.

The insurer will ask for the following documents to issue the NCB retention letter:

- Request letter for policy cancellation

- Original policy copy and certificate of insurance (also called Form 51)

- Form 29 (notice of transfer of ownership of a motor vehicle)

- Form 30 (application for intimation and transfer of ownership of a motor vehicle)

- Photocopy of registration certificate book with name of the new owner

- Proof of delivery of car to the new owner

The last four documents are only required if you are selling your old car. Though technically, it is possible to transfer NCB without selling the old car. Several insurers insist on ownership transfer. I interviewed frontline executives of five insurers and got a different view from each. A transfer to a spouse or family member is considered valid. You can apply for a NCB retention letter within 90 days from the date of sale. The retention letter is valid for three years. So, do the paperwork much in advance before you actually buy your next car.