Significance of No Claim Bonus for a Two-Wheeler Rider is of at most importance. Read the below article to understand the No Claim Bonus in Two-Wheeler Insurance!
NCB or No Claim Bonus is a reward given to the holder of comprehensive bike insurance for every year a claim is not made. In two-wheeler insurance, the insurance company pays you a discount known as a No Claim Bonus, or NCB, in lieu of taking good care of your bike and not bringing liability to them. You might save up to 50% on your bike insurance if you don't file any claims. This is available if you haven't filed a claim in the previous five years. Accumulated NCB over years can increase your sum insured to a considerable degree.
You can claim your NCB when you renew your bike insurance.
Importance of No Claim Bonus in Bike Insurance
The importance of NCB in bike insurance is substantial. It is a reward for driving safely that can be availed when they renew bike insurance online/offline. It is an incentive employed by insurance companies to encourage drivers to exercise caution while riding or driving on the roads. The major significance of NCB in bike insurance is that it reduces your insurance premium over time and thus reduces your monthly or yearly expenditure. This means that you get higher coverage for a lesser insurance premium. What better than driving safely and getting high insurance with lower and lower premiums?
Benefits of NCB in two-wheeler Insurance
If you buy bike insurance online, things get very easy for you. Your initial costs reduce and you enjoy the insurance with negligible or no initial cost at all.
In subsequent years of driving safely, you can further benefit from the NCB bonus which is easy to claim in the online medium. Here are some of the major benefits of NCB in two-wheeler insurance:
Acts as a reward:
It always feels good to be rewarded for fulfilling your responsibilities. In the case of NCB, it's the same. You can majorly discount the premium for driving responsibility and taking good care of yourself and your vehicle.
Easy to Transfer:
The benefit of NCB belongs to the policyholder and not to the two-wheeler, hence the policyholder can easily transfer the same to his new policy when he buys bike insurance online/offline. For example, if you have% NCB on your account, you can transfer it to the new policy at the time you renew your bike insurance online.
Helps Reduce Premium:
With NCB you directly reduce your bike insurance premium. This is a significant benefit for policyholders because the reward increases with each year without a claim, lowering the cost of coverage. Additionally, if you decide to sell your old two-wheeler and purchase a new two-wheeler, the NCB you've earned will assist you in obtaining a more affordable bike insurance policy.
How is NCB for Two Wheeler Insurance calculated?
Now let’s see how to check NCB for bike insurance. NCB is available to you if you have not filed a claim for a year. The NCB discount from the previous year will be applied to the premium for the following year. As a result, you will be able to carry over the discount from Year 1 into Year 2. The amount of money that can be saved by accumulating discounts over time is huge. The premium calculator will do the calculation on an annual basis throughout the length of the insurance.
The table below shows how the eligible discount amounts are broken down by the number of years:
|Claim Free Year||Applicable No-Claim Bonus(NCB)|
|After 1 year||20|
|After 2 year||25|
|After 3 year||35|
|After 4 year||45|
|After 5 year||50|
Now if you wish to sell your existing bike and buy a new one, the accumulated NCB can be transferred to the new bike.
How to Transfer NCB to New Bike Insurance?
After selling your previous car and transferring the insurance policy to the new owner, you can preserve the No Claim Bonus earned on your Comprehensive motorcycle insurance policy. Your insurance carrier will offer a no claims bonus certificate, which you can transfer along with the necessary papers and use to qualify for a discount on a new insurance policy for your new bike.
Documents Required For the Transfer Of No-Claim Bonus
- NCB Transfer certificate received from the insurance company
- Buyer and Seller Agreement (Form 29 and Form 30)
- The delivery note by the new buyer to get the transfer certificate of NCB
Thing to Remember about NCB in India
Here are few things you should now about NCB in India if you are about to buy bike insurance online/offline:
Available only with comprehensive insurance policy
The default policy that your bike seller provides you is a third party insurance policy that only covers the other party in an accident. To avail of the benefits of NCB, you should have comprehensive bike insurance.
Even a single claim will disqualify you from receiving the NCB discount the following year when you renew your insurance. Ensure that you do not file small claims and that you only file large claims to protect the NCB.
Making claims will nullify NCB
Make intelligent claims to ensure that you keep the NCB. You may be eligible for a 50% discount on your insurance premiums if you haven't filed any claims in the past five years.
Renew your bike insurance on time
It is important to renew your bike insurance on time. In case of timely payment, your policy can lapse which can lead to fines and losing out on your acquired NCB. The NCB is terminated if you do now renew bike insurance within 90 days of the expiration date.
Make sure to transfer the NCB
If you change the vehicle, the NCB acquired on the previous vehicle is not automatically transferred. You have to go through the proper process and documentation for the same. Ensure that you transfer your NCB when you buy a new two-wheeler.
Use the NCB certificate within 3 years
The NCB must be utilized and then it must be shifted to the new vehicle within 3 years. This is because the NCB transfer certificate is valid only for 3 years.
Don’t cancel the policy before the tenure ends
No Claim Bonus is that one major aspect of insurance policy that most people either do not know about or do not pay attention to. But it can be substantially helpful for you in terms of finance and monetary benefits.
We try to bring you the required information through our blogs and content, which would help you to compare bike insurance, and be your own agent. This is easy with the help of Coverfox easy to use interface. Buying bike insurance from Coverfox is easy, affordable and convenient like no other platform. If you still find it difficult to choose your policy or need guidance, you can always reach out to us at our customer support. We are available 24x7 to assist you.