NCB, as you know, is No Claim Bonus. It is a bonus you receive if you don’t have any claim for a year. At times, you may decide to repair your bike on your own. This makes you eligible for an NCB for bike insurance.
What is NCB in bike insurance?
NCB in bike or two-wheeler insurance is a percentage of discount on your premium. You receive it during the renewal of your policy. NCB is applicable on own-damage premium component of your policy. The discount generally comes in the range of 20-50%.
Why no-claim bike insurance bonus?
All these insights present the next question; why it is so important? The answer is quite simple. You lower your premium with every passing year. You can accumulate the discount and get a huge discount in your premium. You can always transfer your NCB to from an old bike to new one. In such an instance, your insurer gives you an NCB reserving certificate. The document is valid for three years.
Points to remember
Remember the following points when aspiring for no claim bonus for bike insurance:
- NCB is a gift you receive from your company for your good driving habits.
- You will get NCB only if you renew your insurance without delay. It should be done within 90 days after your policy has expired.
- No claim bonus gets higher every claim free year. On renewal, a discount of 20% is given in first year, 25% discount is given in the 2nd consecutive year, 35% in 3rd year, 45% in 4th year and 50% in 5th year. In case of any claim made in between any year, NCB discount will do down to zero.
- You can avail no claim bonus only in own damage, not for a third-party claim.
- NCB can't be transferred to the other driver. It is given to the driver’s good driving skills and not to the vehicle. NCB discount can be availed on the first premium of the new bike. But you may not transfer NCB from a two-wheeler to its four-wheeled counterpart.
- You may transfer your no claim bonus of your bike even if you change your bike and insurance company. For that to happen, your insurer should give you an NCB certificate. You may also avail it online.
No claim bonus add-on policy
You may go for add-on coverage to protect your NCB insurance for two-wheelers. But insurance providers impose several restrictions in this regard. For some, it is available only if you don’t file a claim for two years. Others may allow just one claim a year to avail the benefit. Certain companies just deny you the coverage if you file for a total loss claim. The only way out is to avoid filing claims for minor damages.
Note* Adopt best practices while driving; your wallet will thank you for the effort.