NCB IN TWO WHEELER INSURANCE

What is NCB in Two Wheeler Insurance?

No Claim Bonus in bike insurance is a discount offered in premiums by insurer to policyholder on keeping policy claim-free for policy year. It is normally given in the form of a discount in bike insurance premiums during renewal. For the first claim-free year you get a discount of up to 20% and for cumulative claim-free years it can go up to 50%.

The concept of a No Claim Bonus (NCB) in bike insurance was introduced to discourage unwarranted claims and encourage responsible behavior among riders.

Here are the key features of No Claim Bonus in Bike Insurance

 

 

 

 

Key Features of No Claim Bonus in Bike Insurance

• NCB is applicable in Comprehensive or Own Damage Bike Insurance

• NCB belongs to policyholders and not to your two wheeler.

• NCB gets applied only on the premium of its own damage component of policy and not on complete bike insurance premium.

• NCB starts with 20% in premium for the first claim-free year and can go up to 50% discount for cumulative claim-free years.

• NCB Discount can not be shared in two independent insurance policies

• NCB can be retained even if you switch your bike insurance companies.

• On purchase of a new two wheeler you can transfer NCB from old two wheeler insurance to new one.

 

How Does NCB Work?

No claim in bike insurance is a reward mechanism for policyholders who do not claim their insurance policy during policy terms. Keep in mind that NCB only applies for the own damage component of your two wheeler policy. You can make the insurance claim if your bike damages someone else's property or causes injury to a third party.

For every claim-free policy year incremented discount gets added to bike insurance premiums.

 

NCB starts with a 20% premium discount for the first policy claim-free year and keeps on increasing progressively up to maximum 50%.

 

If a claim is made in any of the cumulative years, NCB resets to 0%. You will have to regain the NCB discount from the next claim-free year.

 

If you have added NCB add-on cover with bike insurance, it allows you to keep no claim bonus intact with policy even if you claim insurance in policy year.

 

NCB belongs to policyholders which means it can be transferred to a new vehicle if the owner plans to sell the old bike and purchase a new one.

 

If you plan to change your insurer in any successive claim-free years, you need to request a NCB certificate from the current insurer and provide it to the new insurance provider. 

 

Example How NCB Works

Suppose the premium of your bike insurance is 5000, out of which 3000 is for your own damage premium and 2000 is for third party premium.
 

Year 1: If no claim is made in the first year, you will be applicable for 20% discount of own damage premium i.e. 3000 which gets to 600 

  

Year 2: With the discount of first year NCB your overall premium will be reduced to 4400. If no claim is made in successive 2 year discounts of 25% will be added on OD premium which reduces your overall policy renewal premium to 4250.

 

Benefits of NCB in Bike Insurance

1. Reward

The discounted amount in premium acts as reward and motivates policyholders for responsible driving.

2. Discount in Premiums

NCB Discount reduces renewal premium leading to significant cost saving.

3. NCB Add On

Allows you to claim NCB even if you claim insurance during the policy term.

4. Transferrable

No claim bonus of the old two wheeler insurance policy can be transferred to the new bike policy if you plan to purchase a new bike.

 

How to Check NCB in Bike Insurance

Check Policy Document

Normally your bike insurance policy documents often mention the NCB details with applicable discounts. Check the document if there is any NCB section with details like applicable discount percentage.

 

Contact Your Insurer

If your policy document is missing the NCB section you can call or email your insurance company’s customer support to inquire about NCB status. They will verify your policy number for reference and will update you with NCB eligibility status.

 

Check Insurer Online Portal

Most of the insurance companies have online portals where you can create and log in to your account to check all the policy details including NCB details.

  

Ask for NCB Certificate

In case if you are thinking of porting your insurer provider, you can request for NCB certificate to your current insurer. This certificate can be shared with new insurers to keep availing NCB benefits.

 

How NCB is Calculated in Bike Insurance

 

When Does Bike Insurance NCB Get Canceled?

• If policyholder fails to renew bike insurance within 90 days of policy expiry

• If the policy holder cancels the policy.

• If you fail to provide a NCB transfer certificate while switching your bike insurance provider.

 

Important Tips to Retain NCB

Here are some important tips you must follow to retain NCB and keep availing its benefits.

• Avoid filing claims for minor repairs.

• Renew your policy in advance to avoid policy expiration.

• In case of switching insurer, get an NCB certificate and provide it to the new insurer.

• Consider buying an NCB add-on to retain NCB even after making a claim.

NCB in Bike Insurance - FAQs

What is NCB in Bike Insurance?

No claim bonus is a discount offered on bike insurance renewal by the insurer for each claim-free policy year.

 

Does Third Party Claims Affect My Bike Insurance NCB Discount?

No, a claim made for third party damages does not impact your bike insurance’s NCB. It is solely related to whether you make a claim for damage to your own bike.

 

What are Rules for NCB Transfers while Switching Insurance Provider?

You must obtain the NCB Transfer Certificate from your old insurance carrier to transfer the NCB to new bike insurance. You will be able to transfer the No Claim Bonus to the new two-wheeler insurance if you submit the document along with Form 29 and 30 (buyer/seller agreement).

 

Is it True If Someone Strikes My Bike, Will I Lose My NCB?

You will lose NCB if you file a claim and the insurance company pays the repair bill by settling your claim. If the other individual files a third-party claim with their insurance company, however, your NCB coverage will remain unaffected.

 

What is the Difference between NCB and NCB Add-On in Bike Insurance?

NCB is a discount offered by insurers on policy renewal amount if policyholders do not claim their insurance in consecutive years, whereas NCB add-on is cover that can be added with bike insurance to keep your NCB unaffected even in the condition of claim made during the policy period.

 

Is NCB Transferrable If I Purchase a New Bike?

Yes, as NCB belongs to policyholders not to bike so it can be transferred to new bike registered with the same policyholder.

 

Can I Get NCB Even After I Claim Insurance in Policy Terms?

If you have added NCB with your bike insurance, your NCB may remain intact with the insurance policy even after you apply for a claim during the policy term.