The NCB in Bike Insurance is a well-known aspect of the insurance sector. The main idea is to give policyholders, who haven’t filed a claim throughout the policy duration, discounts in the form of bonuses. Although there are a plethora of factors determining the amount of your bike insurance premium, NCB or No Claim Bonus plays a vital role in mitigating your premium amount.
What Is No Claim Bonus In Two Wheeler Insurance?
In the context of two-wheeler insurance, NCB refers to a discount that an insurer may grant if you ride your bike carefully and make no claims while the policy is in effect. Therefore, be sure to give your bike regular maintenance and attempt to prevent damage by riding safely.
No Claim Bonus promotes safe driving. It’s a ploy used by insurers to encourage drivers to use caution when operating motor vehicles. Driving safely results in no claim. In exchange, insurance providers give customers a benefit known as an NCB bonus, which may be claimed by paying a cheaper rate when renewing a bike insurance policy. If you think the current SI is insufficient, you can also raise the policy sum insured.
Benefits Of No Claim Bonus In Bike Insurance
Here are three of the most important benefits of No Claim Bonus in bike insurance:
- Transferable
You are the owner of the NCB that you obtain for driving defensively and avoiding filing a claim. Therefore, if you change insurance companies, it can be transferred to the new insurer, where you can start to benefit from it.
- Aids In Premium Reduction
The NCB is provided as a discount when paying the renewal premium if you do not file a claim during the policy period. Therefore, you are able to benefit financially from it when your insurance is renewed.
- Promotes Safe Biking
The No Claim Bonus is a thank-you gift from your motorcycle insurance provider. Every bike rider gradually improves their riding skills and becomes a responsible driver as a result of their enthusiasm to obtain this NCB bonus each year.
How Is The No Claim Bonus Calculated In Two-Wheeler Insurance?
If you have made no claims in a year, you are eligible for the NCB. Now next year when you will pay the premium amount, a discount will be generated from the NCB of the previous year. The discount that was received by the end of the first year will essentially be carried over to the second year. The whole discount that was accumulated by the end of the second year will be carried over to the third year, and so forth. Throughout the duration of the policy, a yearly calculation is made.
The same is illustrated in the table below:
| Claim Free Year | No Claim Bonus |
| First Year | 20% |
| Second Year | 25% |
| Third Year | 35% |
| Fourth Year | 45% |
| Fifth Year | 50% |
For example, you paid a premium of Rs. 20,000 to get a bike insurance coverage. If you didn’t file a claim in the first year, you’ll receive a 20 percent discount on the subsequent premium, bringing the cost of your second year’s premium to Rs. 16,000. On the other hand, no discount will be applied if you file even one claim during the first year. Your monthly premium will not change. Moreover, the discount will continue if you do not claim for five years.
| Year | Discount Generated | Premium Amount |
| First Year | 20% | Rs. 16,000 |
| Second Year | 25% | Rs. 15,000 |
| Third Year | 35% | Rs. 13,000 |
| Fourth Year | 45% | Rs. 11,000 |
| Fifth Year | 50% | Rs. 10,000 |
Things To Know About NCB On Bike Insurance
The following are some of the most important things you should know about NCB on bike insurance:
- The discount amount cannot be split across two or more policies. It is applicable to just one policy.
- You risk losing the NCB discount earned for that year if you cancel the insurance before the policy period expires.
- The NCB gained from your existing provider can be transferred to the new provider if you decide to change your insurance company.
- Your request for an NCB will be cancelled if you made a claim in any year during the policy period.
- NCB expires if the insurance coverage is not renewed within 90 days of the actual expiration date of the policy.
- If a name change occurs on the vehicle’s RC, NCB recovery may be possible.
Summing Up
I hope you now understand what NCB means in the context of bike insurance and the kind of significant influence it has on your premiums. So, if your primary aim is to save on bike insurance premiums, it is advisable to drive safely and avoid claiming your bike insurance policy. In this manner, you will make the most out of your No Claim Bonus and enjoy the benefits of affordable yet extensive two-wheeler insurance.
