Meaning: No Claim Bonus (NCB) is a waiver of premium which is offered by insurance companies if the vehicle owner has not made a single claim during the term of the motor insurance policy. In what is ncb in bike insurance ?
Description: No-claim bonus is a reward given to the vehicle owner for judicious use of the vehicle. Example, if you sell your 10-year old hatchback car and then buy a C-segment car, the no-claim bonus will accrue to the new vehicle and you can save significantly on your insurance costs.And this can be transferred to any other insurance company subject to evidence in the form of renewal notice or letter from the previous insurer confirming NCB eligibility.
Generally the discount in premium is upto 20% for the second year, and 25% for the third year, 35% for the fourth year, 45% for the fifth year and 50% for the sixth year. The value of the discount depends on the insurance claims made by you in that particular year. The NCB can be extended and will be allowed only if the policy is renewed within 90 days from the expiry date of the previous policy.
Can you transfer NCB while buying a new bike?
Also the another good news is that the accumulated NCB bonus is just like the famous pug, it goes with you wherever you go. Yes it is transferable from your old vehicle to the new vehicle, if you decide to buy a new bike, as long as you continue to be the policy holder. Your No Claim Bonus is for you as the policy holder and not for your bike.
How to calculate NCB in bike insurance
Your No Claim Bonus starts only after the first renewal of your comprehensive two wheeler insurance policy. (Note, NCB is specifically applicable to the Own Damage component of your premium, which is the premium calculated based on the IDV or Sum Assured Declared Value of the bike less the cost of damage to the bike. Bonus Third Party Does not apply to cover premium).
You start getting 20% discount on your premium after the first claim-free year. The discount increases by 5-10% every year at the time of policy renewal. In other words, the discount is accrued every year you don’t claim, almost as if the reward for good behavior of the policy holder keeps getting higher.
For example, if you have received 20% NCB at the end of the first policy year and you do not claim any claim in the second year also, your premium will be discounted to 25-30%, then up to 30-35% for consecutive years and so on. This way you can get up to 50% off on your premium in 5 years.
|Claim free years||No Claim Bonus|
|After 1 year||20%|
|After 2 years||25%|
|After 3 years||35%|
|After 4 years||45%|
|After 5 years||50%|
Don’t be greedy because the exemption will not increase after five years, even if you don’t claim in one year. Now let’s see how this calculation works with a simple example.
You bought a fast bike in 2010. There can be no other ideal biker aka policy holder like you in the world. You paid your premium on time. You didn’t make any claim in the first year or the second year… or the fifth year.
Now, you thought, you’ve had enough of this bike. You sell this bike and bring home another slick model in 2015 instead. You have also got your bike insured along with your new bike. Suppose the premium for own damages for the new vehicle is Rs.3000. But you have deposited NCB for 5 years. So you will get up to 50% off on your new vehicle premium. For own loss premium you have to pay only Rs.1500!
When can I lose NCB?
Once a claim is made, the NCB is reset to zero, irrespective of the year of your policy. Is there any exception to this? Of course, there is. If the NCB protection feature has been added to your policy, then this rule will not be applicable.
Is there any way I can claim and still retain my NCB?
Depending on whether your desired insurance company offers benefits or not. If your insurer allows it, you can go for NCB Protect add-on as part of your comprehensive policy. With this facility, you can make a specific number of insurance claims (mostly just one) in a year without losing your No Claim Bonus. Some insurers may also put a stipulation on the number of years your policy must go without a claim before the protection feature starts.
So, the next time you are in the mood for some bike racing, remember that the no claim bonus awaits you on the other side of self-control. It is also worth remembering that this reward is transferable to new vehicles and new insurers. So the wisdom says, drive safe, don’t claim unless you really need to and keep on taking advantage of the no claim bonuses that come your way!
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FAQ about what is ncb in bike insurance
How is NCB calculated?
So, the earned NCB percentage will be calculated by deducting third party liability premium from the total premium. This is one of the important to understand, as car owners often wonder if there is a calculation error as they usually calculate the NCB on the total premium and feel that they have received insufficient discount.
What is the use of NCB in two wheeler insurance?
What is NCB in Bike Insurance? NCB or No Claim Bonus is the discount or savings on premium paid by motor insurance companies to the bike owner if he did not make any claim during his bike insurance policy term. In case of death of the Life Assured, NCB benefit is provided to the nominee.
What is NCB in bike insurance policy?
NCB stands for No Claim Bonus. And generally a two wheeler insurance policy holder is eligible for this benefit if he/she does not file any claim in the previous policy year. This exemption is applicable on the ‘own loss premium’ component of the insurance plan. Discounts usually range between 20% and 50%.
What is NCB amount?
No Claim Bonus or NCB is a reward offered by an insurance company to an insurance company for not making any claim requests during the policy year. No Claim Bonus is generally a discount of between 20%-50% and is given to the insured while renewing the policy. NCB discount is offered on premium amount during renewal.
How do I get No Claim Bonus on my bike?
While renewing your bike insurance policy, you can avail the no claim bonus accrued on the old policy against the loss of motor insurance itself. First you have to consider the total claim-free years in your policy and apply the applicable No Claim Bonus rate. Claim premium waiver in the policy.
That’s all about what is ncb in bike insurance ?