Have you ever wondered what is the best way to encourage someone to stay disciplined in their life? While acknowledging and praising their activities can motivate them to a certain extent, a financial reward will keep them motivated forever!
The No Claim Bonus for two-wheeler insurance is one similar feature introduced to reward and help you stay motivated while safeguarding your bike.
You can determine the impact of the No Claim Bonus on the premium by utilising the bike insurance premium calculator.
So, what is the bike insurance No Claim Bonus, how is it calculated, and how is it beneficial, let us drive through the knowledge journey right away!
What Is No Claim Bonus (NCB) In Bike Insurance?
No Claim Bonus (NCB) in bike insurance is a discount on a premium provided to you for not making a claim in the previous policy year. You can utilise the No Claim Bonus on your bike insurance policy renewal.
Furthermore, if you have not faced any damages on your bike and you never made a claim in the past few years, you can accumulate the No Claim Bonus over the years and benefit from a more significant discount.
How Is NCB Calculated?
The No Claim Bonus for bike insurance applies to a comprehensive bike insurance policy and is specific only to the own damage cover.
The NCB for the renewal after the first year is a 20% discount on your premium. Further, it will increase by 5 – 10% in the subsequent years.
Here is a detail explaining the applicable NCB for bike insurance.
| Claim free years | Applicable No Claim Bonus |
| After 1 policy year | 20% |
| After 2 policy years | 25% |
| After 3 policy years | 35% |
| After 4 policy years | 45% |
| After 5 policy years | 50% |
After five years, the discount will not increase and will remain 50% in the next year if applicable.
Example:
Consider that you purchased Yamaha bike insurance in the previous policy year, and the premium was ₹4000. If you have not made any claims in the previous year, the premium at the time of renewal this year for the same type of bike insurance coverage will be ₹3200.
The calculation is as follows:
| Particulars | Amount |
| Premium for the previous policy year | ₹4000 |
| NCB (20%) | ₹800 |
| Premium for the current policy year | ₹3200 |
Benefits of No Claim Bonus For Bike Insurance
- Discount on premium – The NCB is a discount and reduces the premium for every applicable policy year. Furthermore, the discount increases with the increase in the claim-free years.
- Easily availed – You can avail of the NCB benefit from your insurer easily online during your bike insurance policy renewal.
- Easy to transfer – Although the NCB is associated with your bike, it is a reward provided for your disciplined riding practices and for the fact that you have not raised a claim in the previous year. Therefore, you can continue to benefit from this discount by transferring the No Claim Bonus to a new bike purchased or a new insurance provider.
- Encourages safe riding – A financial reward on your bike insurance premium will encourage safe riding discipline. Riding safely and adhering to the traffic rules will increase your claim-free years while securing your bike to the best standards.
Factors To Keep In Mind While Considering NCB
- Applicability – The NCB for two-wheelers is available only for the comprehensive bike insurance policy and specifically for the own damage. Therefore, it is a benefit not applicable to the third-party bike insurance policy.
- NCB can be nullified – When you raise a claim for one policy year, it can nullify the NCB accumulated, irrespective of the number of claim-free years.
- Avoid making small claims – As a single claim can reset the NCB to zero, avoid initiating requests for small claims for which you can bear the cost.
- Bike insurance lapse can terminate NCB – If you have not renewed your insurance for 2 wheeler timely, it can lead to a policy lapse which can later terminate your No Claim Bonus benefit.
The validity for NCB is 90 days from the date of expiry of the bike insurance policy. Therefore, ensure to renew your bike insurance policy in time to avail of the NCB benefit.
Is There A Way To Make A Claim And Still Retain My NCB?
You can make a claim and still retain your No Claim Bonus by purchasing an add-on to protect the NCB benefit. You can make a specific number of claims in a year and retain the NCB. Furthermore, there can be conditions on the number of years the benefit can be availed.
The NCB Protect add-on is available at an additional cost. However, the benefit is worth the expense.
Conclusion
The No Claim Bonus (NCB) in a comprehensive bike insurance policy is a discount on its premium provided to you if you have not made a claim in the previous policy year.
It is a reward for every claim-free year and increases for five consecutive policy years. It can be easily availed, encourages safe riding practices, and can also be transferred to a new bike or insurance provider.
