Maximising Your Bike Insurance With No Claim Bonus

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By John A

Ina two-wheeler insurance policy, the No Claim Bonus (NCB) is pivotal in determining premiums and facilitating savings for policyholders. NCB is a concession that insurers offer to policyholders who maintain a claim-free record over the policy period. It is essential to delve into the intricacies of NCB to make informed decisions while purchasing and renewing bike insurance. *

Full-Form And Calculation Of NCB In Bike Insurance

As the full name suggests, the No Claim Bonus is a benefit extended to policyholders who refrain from filing claims during the policy term. The Insurance Regulatory and Development Authority of India (IRDAI) governs the calculation of the NCB—the concession percentage increases with each claim-free year, capping 50% after five consecutive claim-free years. # *

NCB Slab For Bikes

The NCB concession on the Own Damage component of a two-wheeler insurance policy follows a structured slab, providing policyholders with a clear understanding of how NCB impacts insurance rates.

Following the first year: 20%

After the second year: 25%

Post three years: 35%

After the fourth year: 45%

Following the fifth year: 50%

Advantages Of NCB In Two-Wheeler Insurance

Lowering The Premium: NCB’s primary advantage is its role as a premium concession during policy renewal. Safe riders who abstain from filing claims can significantly reduce their insurance costs, incentivising adherence to traffic rules and responsible riding. ## *

Convertibility: NCB is a portable benefit owned by the policyholder. *

Significance Of NCB In Two-Wheeler Insurance

NCB is immensely important in two-wheeler insurance third parties, contributing to a reduction in premium costs. Over five consecutive claim-free policy terms, policyholders can enjoy a substantial 50% reduction in their policy premiums, resulting in significant cost savings. ## *

NCB Protection Add-On Cover In Bike Insurance

The NCB Protection Add-On Cover, available exclusively with Comprehensive Bike Insurance, safeguards the No Claim Bonus (NCB) from being affected by claim filings. This optional benefit allows policyholders to make up to two claims per year without impacting their NCB, ensuring uninterrupted concessions even in the event of a claim.


NCB Protection Add-On Cover Inclusions And Exclusions

The NCB Protection Add-On Cover includes eligibility for comprehensive insurance, safeguards NCB during damage claims, and permits up to two claims annually without NCB loss. Exclusions involve disputes over eligibility, complete loss or theft, fraudulent damage claims, and falsification of information. Claims are subject to terms and conditions set forth under the motor insurance policy. *

Transferring NCB To A New Bike Insurance

Transferring NCB to a new bike insurance policy involves notifying the current insurer, obtaining an NCB transfer certificate, submitting buyer-seller agreement forms, and paying the lowered premium rates for the new policy. Claims are subject to terms and conditions set forth under the motor insurance policy. *

Understanding and leveraging NCB in bike insurance can result in substantial savings and financial benefits for responsible and claim-free policyholders. The chassis number in bike insurance plays a crucial role during the policy transfer process, ensuring the accurate documentation and seamless transition of the No Claim Bonus to the new owner. ##

Regular two-wheeler insurance renewals, adherence to documentation protocols, and informed choices regarding add-on covers enhance the overall effectiveness of NCB in optimising two-wheeler insurance costs.

*Standard T&C Apply

#Visit the official website of IRDAI for further details.

##All savings are provided by the insurer as per the IRDAI-approved insurance plan.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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