Bike insurance policies allow you various value-added benefits besides the coverage. These benefits promise you premium discounts or added coverage. One such benefit in bike insurance policies is the No Claim Bonus. Do you know what No Claim Bonus is?
What is No Claim Bonus?
No claim bonus is the bonus which is allowed in the bike insurance policy if no claim is made in a policy year. When no claim is made, the insurance company allows a discount in the renewal premium when you renew bike insurance.
How does the No Claim Bonus Work?
The bonus allows a two wheeler insurance premium discount on renewal. The discount also increases with every claim-free policy year, for a consecutive period of five years. The discount rate is 20% after the first claim-free policy year, 25% after two successive claim-free years, 35% after three successive claim-free years, 45% after four years and 50% if there has been no claim in the last five years and above. When you renew bike insurance you would have to see for how many years there has been no claim. According to the applicable rate you get a premium discount.
How to Avail No Claim Bonus?
You can avail no claim bonus discount only when you renew bike insurance policies. When you do two wheeler insurance renewal online, you would be given a choice to opt for the applicable no claim bonus. Consider the total claim-free years in your policy and apply the applicable no claim bonus rate to claim a premium discount in the policy. Make sure to check whether your insurer has included the No Claim Bonus (NCB) discount (if applicable) while letting you know the bike insurance quote.
Things to Know About No Claim Bonus?
There are some things to note about no claim bonus before you avail it. Here are some of the main things –
- No claim bonus is available only in case of comprehensive two wheeler insurance policies. If you have bought just the third party two wheeler insurance you would not get no claim bonus even when there is no claim. In case of third party two wheeler insurance policies coverage is allowed only for third party liability while no claim bonus is meant for own damage claims.
- If any claim is made in the policy, the entire accumulated no claim bonus is lost. Even if you have accumulated up to 50% no claim discount and there is a claim, you lose the entire discount. To protect the discount, you can opt for no claim protect add-on. The add-on protects the accumulated no claim bonus even if you make a claim in the policy. The add-on comes at an additional premium and can be chosen when you buy or opt for two wheeler insurance online.
- To protect the accumulated no claim bonus, you should avoid making small claims in the policy. Paying for small claims yourself keeps your bonus intact and helps you avail a premium discount.
- When you sell your bike, you can retain the no claim bonus accumulated in the policy. The bonus can then be used to avail a premium discount in the new bike insurance policy which you buy.
- If your two wheeler insurance policy has expired you should renew expired bike insurance online. If the policy is not renewed on time, the accumulated no claim bonus lapses and you lose the discount. The bonus is available for 90 days after the expiry of the policy. If the policy is not renewed within this period you lose the bonus. So, always renew your two-wheeler insurance policy on time to avoid losing the discount in your policy.
So, understand the concept of no claim bonus in your two wheeler insurance policy and use the bonus to avail attractive premium discounts.
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