How to Transfer Your No Claim Bonus to a New Car in Sri Lanka

How do you transfer your No Claim Bonus to a new car in Sri Lanka?

You transfer your No Claim Bonus (NCB) by asking your current insurer for a written NCB confirmation letter, then giving that letter to your new insurer when you insure the new vehicle. Your NCB is tied to you as the policyholder, not to the car, so it moves with you whether you buy a different model, switch insurance companies, or both at once.

This matters because NCB can cut your premium by a large percentage after a few claim-free years. Losing track of the paperwork, or not asking for it, means starting back at zero on a brand-new policy — even if you have driven for years without a single claim.

Key facts

• NCB is a discount your insurer gives you at renewal for not making a claim during the previous policy period.
• It belongs to the policyholder, not the vehicle, so it is portable between cars and between insurers.
• Discounts typically build up over consecutive claim-free years, starting around 20% and rising with each extra year, though the exact scale and cap differ by insurer (check yours, as of November 2026).
• An own-damage claim generally resets your NCB to a lower tier or to zero, depending on the insurer's rules.
• You need a written NCB confirmation letter or certificate from your current or previous insurer to carry it to a new policy.
• Some insurers sell an NCB protection add-on that keeps your discount safe after one claim, for a small extra premium.
• When you sell your car, your NCB does not automatically go with the vehicle or the buyer — it stays with you for your next policy.
• If you have gone without a vehicle for a while, some insurers still honour a prior NCB, but the proof and time limit they accept vary.

What is a No Claim Bonus and who owns it?

An NCB is the discount your insurer applies at renewal because you did not file a claim during the past policy year. According to MotorGuide.lk, the bonus "belongs to the owner of the insurance policy, not the vehicle." That single point is what makes the whole transfer process possible: you are not transferring a benefit attached to the car's CR book, you are carrying forward your own claims record as a driver and policyholder.

This is different from things like the revenue licence or insurance cover itself, which are tied to the specific vehicle and do need fresh paperwork every time you buy or sell. NCB sits outside that — it is personal to you.

How much discount can an NCB give you?

Most insurers build NCB on a rising scale tied to consecutive claim-free years — commonly starting around 20% after the first year and increasing with each further claim-free year, up to a cap that some companies set at 50–70%. These exact figures change between insurers and over time, so always ask your specific insurer for their current NCB table before you rely on a number, as of November 2026.

If you are comparing quotes for a new policy, ask each insurer to show you the premium with your NCB applied, not just the base premium — the gap between insurers on the discounted figure is what actually affects what you pay.

What documents do you need to transfer NCB?

You will generally need:

• Your current or most recent motor insurance policy number
• The name of your current or previous insurer
• A written NCB confirmation letter or certificate from that insurer, stating your claim-free years and current NCB percentage
• Your NIC and the CR book or registration details of the new vehicle you are insuring

Ask for the NCB letter as soon as you decide to sell your car or switch insurers — don't wait until the last day of your current policy. If you let the policy lapse for a long time before asking, some insurers may be stricter about accepting it.

Can you transfer NCB when you switch insurance companies?

Yes. NCB transfer between companies works the same way as transferring it between vehicles with the same insurer. You request the NCB confirmation from your current insurer, then declare your NCB percentage and claim-free years to the new insurer when you take out the new policy. The new insurer applies the discount once they have verified your letter.

It is worth comparing more than one insurer's quote before you commit, since base premiums (before the NCB is applied) can differ. You can shop around based on vehicle value and risk profile while keeping your NCB intact across any of them.

What happens to your NCB if you make a claim?

Filing an own-damage claim typically drops your NCB back down — either to the starting tier or to zero, depending on the insurer's specific rules. A third-party-only claim where you are not paying for your own vehicle's damage usually does not affect your NCB, but this also varies by company, so confirm it with your insurer before assuming either way.

If you are close to a high NCB tier and are deciding whether a small claim is worth filing, weigh the repair cost against what you would lose in future premium discounts — sometimes paying a minor repair out of pocket keeps more money in your pocket over the next few years.

Can you protect your NCB from being wiped out?

Some insurers offer an NCB protection add-on, usually for a small extra premium, which keeps your discount intact even if you make one claim during the year. This is most useful once you have built up a high NCB percentage and have more to lose. Ask your insurer directly whether this cover exists, what it costs, and exactly what it protects — terms differ between companies.

What if you sell your car and don't buy a new one right away?

Your NCB does not transfer to the buyer of your old car — it stays with you as the policyholder. If you go without a vehicle for a while before buying again, keep your NCB confirmation letter safe, because you will need to present it to whichever insurer covers your next vehicle. Many insurers will still honour an NCB earned on a previous vehicle after a gap, but the time limit and proof they require are set by each company, so check before you assume your discount is still valid.

Step-by-step checklist to transfer your NCB

1. Before your current policy ends or before you sell your vehicle, ask your insurer for a written NCB confirmation letter showing your claim-free years and current NCB percentage.
2. Decide whether you are staying with the same insurer or switching — either way, you will present this letter to whoever issues your new policy.
3. When buying insurance for your next vehicle, declare your previous policy number, insurer name, and NCB percentage to the new insurer.
4. Ask the new insurer to show you the quote with the NCB discount already applied, so you can compare it properly against other quotes.
5. If you have a high NCB and want to keep it safe, ask about an NCB protection add-on before you finalise the policy.
6. Keep a copy of the NCB letter for your own records in case there is any dispute later.

Where this fits when buying or selling

If you are about to sell your car and buy another one, you can list the old one on Wahanaya and check current market prices with the price check tool before you negotiate. If you're financing the new vehicle, the leasing calculator can help you work out monthly payments once you know roughly what premium — with your NCB applied — you'll be paying on top of that. Browse available vehicles on /vehicles, and read the safety tips before you view or test drive anything. If you run into an insurer that won't honour your NCB or you're unsure about the paperwork, ask in the Wahanaya forum — other buyers and sellers often share what worked for them.

Sources

• What is No Claim Bonus (NCB) in Vehicle Insurance? - MotorGuide.lk
• Allianz Sri Lanka - Motor Insurance
• No Claim Bonus (NCB) in Vehicle Insurance: Meaning, Benefits and Transfer Rules - LT Finance