For buying a new policy call 094444 48899. For customer service call 1860 425 0000.
Search The Blog
Posted by Royal Sundaram on 10 Jul 2019
As the name suggests, no claim bonus or NCB is a bonus offered by the insurance companies if a vehicle owner has not filed any claim in the previous years. In simple terms, NCB is like a reward for not making any claims throughout the policy period. On the other hand, insured declared value or IDV is the current market value of the car, bike or any other vehicle. It is basically the maximum amount one can claim in case of theft or total loss of the vehicle. For example, if a vehicle suffers theft or damage beyond repair, then IDV is the compensation offered by the insurance companies to the policyholder.
Here’s everything you need to know about NCB and IDV in two wheeler insurance –
NCB in two wheeler plays a very significant role in lowering down the premium amount. It is the best way to gradually reduce the cost of premium. NCB starts at 20% and goes up to the maximum of 50%. Below is the table explaining the same –
No claim in the first year
Two continuous claim free years
Three continuous claims free years
Four continuous claims free years
|Five continuous claims free years||50%|
How is IDV calculated?
IDV or insured declared value is the maximum amount that an insurance company will offer against a two wheeler in case of theft or total loss. It is calculated on the basis of company’s listed selling price minus depreciation value.
Insured Declared Value = Manufacturer’s registered selling price – Depreciation Value
The depreciation applicable is as per the table given below –
|Two wheeler’s Age||Depreciation Value|
|Not more than 6 months||5%|
|More than 6 months but less than 1 year||15%|
|More than 1 year but less than 2 years||20%|
|More than 2 years but less than 3 years||30%|
|More than 3 years but less than 4 years||40%|
On the whole, both NCB and IDV play an important role in determining the two wheeler insurance premium. Besides, for those who are looking to buy two wheeler insurance online, go for Royal Sundaram; they offer comprehensive two wheeler insurance plans at affordable rates.
Join over 25,000
of your peers and receive our italk (insurance talk) newsletter with actionable advice on travel, motor, health and home needs right in your inbox!
*We won't spam you, promise