Team AckoJun 11, 2021
It is not always that you want to raise a claim from your bike insurance policy. You take good care of your bike by riding safely and ensure that you do not take undue advantage of your bike insurance to settle the repair bill. You may even pay the premium amount and not raise any claims during the policy period. To award you for riding safely and for not raising a claim, the insurance company offers you a discount known as the No Claim Bonus (NCB) in Bike Insurance.
When the insurance company takes note of you riding your bike safely and not raising any claims during the policy period, it awards you with a discount called No Claim Bonus also known as NCB in two-wheeler insurance. You can get up to 50% discount on the bike insurance premium amount for not raising any claims. This is available when you do not claim for five consecutive years. Ensure you take good care of your bike through regular services and try to avoid damages by riding safely and take advantage of the NCB feature offered on your bike insurance policy.
By not raising any claim during the policy period, you get to retain the No Claim Bonus (NCB) on your 2-wheeler insurance and few other benefits listed below:
It is a reward given to you by the insurance company for driving safely and for not registering a claim during the insurance policy period. It is a discount and encourages you to drive your vehicle safely and ensures you adhere to the traffic rules.
The NCB is yours and belongs to you for driving safely and not registering a claim. Hence, it can be transferred to the new insurance company. You can avail the benefits of the NCB while renewing the policy.
If you do not raise a claim during the policy period, the NCB is used as a discount while paying the renewal premium. You can take advantage of the financial benefits that it offers.
Two-wheeler insurance is important from the legal point of view, offers third-party coverage and protects your vehicle against Own Damage (OD). While buying bike insurance, one of the important elements that you need to look at is the NCB. It is crucial, especially when you raise a claim for damages. Why is NCB important for two-wheeler insurance? Below are a few points which will help you understand the importance of the NCB:
NCB is associated with Comprehensive Two-Wheeler Insurance and it acts as a reward or discount for riding safely and not raising a claim during the policy period. While renewing the policy, the insurance company will offer you a discount in the form of NCB which will help reduce the premium amount.
During the 5th consecutive claim-free renewal of your two-wheeler, the insurance company will provide a 50% discount on the premium. The IRDAI has fixed the percentage of NCB for each consecutive claim-free year. This is a maximum of five years. The discount starts from 20% for the first year and goes up to 50% for five consecutive claim-free years.
You may wonder how NCB for insurance is calculated. The IRDAI has set the limit of discount insurance companies can offer to the policyholder. This is however based on the claim-free years. The percentage of the discount increases every consecutive claim-free year.
Below is the table with the NCB discount in percentage for two-wheelers:
|Year||NCB Discount (%)|
|After the first year||20%|
|After the second year||25%|
|After the third year||35%|
|After the fourth year||45%|
|After the fifth year||50%|
It may be inevitable that you have to raise a claim during the policy period. This will certainly deprive you of enjoying the benefits of NCB. To protect this feature or discount, insurance companies offer Add-on to your standard Comprehensive bike insurance to make it more exhaustive in terms of features. One such is the NCB Protection Cover. Therefore, even if you raise a claim, the NCB will be intact and you can take advantage of the discount while renewing the insurance policy. While you may have to pay a slightly higher premium, the NCB Protect Add-on will shield the NCB while you raise a claim during the policy period.
Some insurers offer additional covers to make the standard Comprehensive insurance more robust and exhaustive. One of the covers is the No Claim Bonus (NCB) Protection Add-on. The main objective of the Add-on is to provide protection to the NCB in case you raise a claim during the insurance policy period. Generally, your NCB will not be affected by the first 2 claims. The cost of NCB Protector Add-on varies between insurance companies. You can get the details while using the bike insurance premium calculator when you include the Add-on.
To take advantage of the discount you have earned the NCB by not raising any claim, you can transfer only the NCB portion to the new insurance company. This is because the NCB does not belong to the bike but to the owner or the policyholder. Below is the No Claim Bonus Transfer process:
You can retain the No Claim Bonus you earned from the Comprehensive bike insurance policy of your old vehicle after you sell it and transfer the insurance policy to the new owner. Your insurance company will issue the NCB Transfer Certificate, and along with required documents, you can transfer the NCB and avail the discount with the new insurance policy for your new bike.
Below are the documents required while transferring the NCB from your old insurance to the new bike insurance:
NCB Transfer Certificate from the insurance company.
Buyer/Seller Agreement (Forms 29 and 30).
The delivery note provided by the new buyer to get the NCB Transfer Certificate.
The No Claim Bonus (NCB) can be cancelled or terminated due to the following reasons:
In case you make a claim during the insurance tenure.
If you do not renew the policy within 90 days of the expiry date, the NCB stands nullified.
NCB is not available with the Third-Party Liability plan. This is only available with the Comprehensive Bike Insurance Policy.
Here are a few things to remember and understand about the No Claim Bonus (NCB) on bike insurance:
The NCB is offered only with the Comprehensive Two-Wheeler Insurance Policy and not with the Third-Party Liability Plan. Ensure you choose the former to enjoy the discount of NCB.
The NCB is awarded in the form of a discount by the insurance company for riding your bike safely and for not registering any claim during the policy period. Hence, make smart claims to ensure you can retain the NCB. This is especially useful when you have accumulated up to 50% discount by not raising claims for five consecutive years.
Even a single claim will deprive you of the NCB discount while renewing the policy for the next year. Ensure you protect the NCB by not raising small claims and only when the repair bill is high.
You can transfer the NCB from your existing insurance policy to the new bike insurance when you sell the bike. The insurance company allows you to transfer the NCB to another insurance company by issuing the NCB Transfer Certificate.
Ensure you renew your two-wheeler insurance within the expiry date. The NCB is terminated in case you fail to renew the policy within 90 days of the expiry date. Hence, a lapse in insurance renewal will impact the NCB.
The NCB Transfer Certificate is valid for a period of three years. Ensure you transfer the benefit to your new bike insurance within three years to avail the discount on the premium amount.
For whatever reasons, do not cancel the bike insurance policy before the tenure ends as the NCB for that year will also be cancelled and you may not be able to take advantage of the discount.
The NCB that you earn for not raising any claim during the policy period cannot be shared between two different bike insurance policies.
Getting the right type of bike insurance policy can sometimes be difficult. With several insurance plans in the market, there is bound to be questions about the best two-wheeler insurance. To choose the right insurance policy for your bike, the following factors will help you find the best bike insurance in the market:
With the advent of digital transactions, insurance companies have scaled up to offer insurance products online. One of the best ways to select the ideal bike insurance policy is to check and compare bike insurance quotes before you buy the policy. Comparing bike insurance policies available in the market will help you understand the parameters which affect the premium amount. You can make an informed choice and select the policy which offers better coverage at a lower premium amount.
The right insurance provider offers prompt services, a better claim settlement ratio, has a large network of garages and offers feature-rich insurance products. You can verify the insurance company based on the reviews that are available on the internet either through their website or their social media handles. Online bike insurance policies offer low premium policies as they do not depend on agents, whom they have to pay commission and provide the insurance directly to the customer.
Before you choose bike insurance, ensure you understand what you require. Based on your needs and the coverage available in the market, choose the policy which offers you higher coverage at a lower premium amount. Check the Insured Declared Value (IDV, Add-on covers, and deductibles before you buy the insurance policy.
Below are some of the common queries about NCB on two-wheeler insurance:
Can I use the NCB for more than two vehicles or bikes?
No. The NCB is awarded for the policy for which a bike or two-wheeler has been insured. You cannot use the benefit you received for one policy for a different policy.
Can I raise a claim and still retain my NCB protection Add-on?
The number of times you can raise a claim during the policy period can differ between insurers. It may be limited to only two claims to protect your NCB with the Add-on, after which the NCB gets nullified.
Does NCB expire?
Yes, the NCB expires if you do not renew the policy within 90 days from the expiry date.
Is No Claim Bonus (NCB) transferable?
Yes. You can transfer the benefit of NCB of your old vehicle to a new vehicle once the old bike is sold to a buyer.
How long should I wait for an insurance claim?
The turn-around-time for the claim to be settled by the insurance company will vary between insurers.
What should I state in an insurance claim?
State the facts about how the vehicle was damaged if you have chosen Comprehensive insurance which covers Own Damage (OD) to your vehicle. Insurance companies will settle your claim if all facts stated are genuine within the terms and conditions mentioned in the policy wordings.
What are the NCB transfer rules?
To transfer the NCB to new bike insurance, you must ensure you procure the NCB Transfer Certificate from your existing insurance company. Ensure you submit the document along with the Form 29 and 30 (buyer/seller agreement) and you would be able to transfer the No Claim Bonus to the new two-wheeler insurance.
Do I lose my NCB if someone hits my bike?
If you raise a claim and the insurance company pays the repair bill by settling your claim, you will lose out on NCB. However, if the other person raises a third-party claim through their insurance company, your NCB policy will remain intact.
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