What is No Claim Bonus (NCB) in a Bike Insurance Policy?

As a responsible bike owner, you must have purchased a bike insurance policy to protect yourself and your bike against unforeseen circumstances such as accidents, theft, or natural disasters. However, did you know that a bike insurance policy comes with a special bonus called the No Claim Bonus (NCB)? If you are new to the world of bike insurance, you might be wondering what NCB is and how it works.

In this article, we will explain in detail what a No Claim Bonus (NCB) is in a bike insurance policy, how it works, and its benefits. So, let's dive right in!

What is No Claim Bonus (NCB) in a Bike Insurance Policy?

NCB is a reward given by the insurance company to the policyholder for not making any claims during the policy period. In other words, if you have a bike insurance policy and you have not made any claims in a particular year, you will be eligible for an NCB discount when you renew your policy the following year.

The NCB discount is calculated as a percentage of the own damage premium of the policy and ranges from 20% to 50%. The percentage of the NCB discount increases with each claim-free year, and the maximum discount of 50% can be availed after five consecutive claim-free years.

Here's a quick breakdown of the NCB discount percentage based on the number of claim-free years:

• 1 claim-free year: 20% discount
• 2 consecutive claim-free years: 25% discount
• 3 consecutive claim-free years: 35% discount
• 4 consecutive claim-free years: 45% discount
• 5 or more consecutive claim-free years: 50% discount

It's important to note that the NCB discount is only applicable to the own damage premium and not the third-party liability premium. Moreover, the NCB discount is transferable from one insurance company to another when you switch your policy.

How to Avail of NCB Discount?

Availing of the NCB discount is simple and hassle-free. When you renew your bike insurance policy, the insurance company automatically applies the NCB discount to your policy premium. Here's what you need to do:

• Inform your insurance company that you want to renew your policy
• Provide the necessary details such as policy number, personal details, and bike details
• Pay the policy premium
• The insurance company will apply the NCB discount to your policy premium based on the number of claim-free years you have accumulated
• Once the premium is paid, you will receive the renewed policy document with the NCB discount applied.

Benefits of NCB in a Bike Insurance Policy

NCB in a bike insurance policy comes with a host of benefits that can help you save money on your policy premium. Here are some of the benefits of NCB:

1. Lower Policy Premium:

The most significant benefit of NCB is that it reduces the policy premium of your bike insurance. The more claim-free years you accumulate, the higher the NCB discount you can avail of, and the lower your policy premium will be.

2. Transferable:

As mentioned earlier, the NCB discount is transferable from one insurance company to another. So, if you switch your policy from one insurance company to another, you can carry your NCB discount with you and enjoy its benefits.

Long-term Savings:

If you manage to accumulate five or more consecutive claim-free years, you can avail the maximum NCB discount of 50%. This can result in significant long-term savings on your policy premium and help you save money in the long run.

The incentive to Drive Safely:

NCB is a great incentive for bike owners to drive safely and avoid accidents. As the NCB discount is only applicable to policyholders who do not make any claims during the policy period, it encourages responsible driving habits and can lead to a safer road environment.

 

Frequently Asked Questions (FAQs)

Q. Can I transfer my NCB discount to another bike?

A. No, the NCB discount is applicable only to the policyholder and not the bike. So, if you sell your bike and buy a new one, you cannot transfer the NCB discount to the new bike.

Q. What happens if I make a claim during the policy period?

A. If you make a claim during the policy period, you will not be eligible for an NCB discount when you renew your policy the following year. The NCB discount is applicable only to policyholders who do not make any claims during the policy period.

Q. Can I avail of the NCB discount if I have a third-party liability policy?

A. No, the NCB discount is applicable only to the own damage premium and not to third-party liability premium. So, if you have a third-party liability policy, you will not be eligible for an NCB discount.

Conclusion

In conclusion, the No Claim Bonus (NCB) is a great incentive for bike owners to drive responsibly and avoid accidents. It not only reduces the policy premium of your bike insurance but also encourages safe driving habits and leads to a safer road environment.

It's important to remember that the NCB discount is only applicable to the own damage premium and not the third-party liability premium. Moreover, the NCB discount is transferable from one insurance company to another when you switch your policy.

By understanding what the No Claim Bonus (NCB) is and how it works, you can maximize its benefits and save money on your bike insurance policy premium. So, make sure to accumulate claim-free years and enjoy the rewards of NCB!