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Selling the old car The absolute car, which is acceptable for NCB, charge be awash either to the banker or a third affair for the NCB to be transferred to the new car. It is important to get a commitment agenda acknowledging the sale, followed by a auction deed.

Applying for the NCB affidavit The policyholder can again address to the allowance aggregation allegorical it about the auction of the old car and that he wants the NCB becoming on the old car to be utilised for the new car. Absolute allowance action capacity should be mentioned in the email or letter for accessible reference.

Documents bare The afterward abstracts are appropriate forth with the accounting application: 1. Archetype of commitment agenda accustomed for auction of old car. 2. A archetype of booking anatomy for the new car. 3. A archetype of allowance action for the old car.

Use of the NCB affidavit Once the appliance has been sent, it takes about one to two alive canicule for the allowance aggregation to affair the NCB certificate, which can be acclimated as affidavit of the absolute NCB. On the base of the certificate, the allowance aggregation can administer the NCB as a abatement on the allowance exceptional for the new car. A abundant abatement can be availed of if the absolute NCB is 50%.

Points to agenda 1. To alteration the NCB to a new car, the allowance for it doesn’t accept to be taken from the aforementioned insurer. 2. The NCB of an old car can accomplish a big aberration to the allowance exceptional of the new car.

(The agreeable on this folio is address Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)

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