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All about NCB and IDV in Two Wheeler Insurance

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 –

             Policy Age        NCB

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.

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2 responses to “All about NCB and IDV in Two Wheeler Insurance”

  1. Raksha says:

    I wasn’t aware of the terminologies NCB and IDV. Thanks for sharing the same. It was really very informative.

  2. Raksha says:

    I recently bought a two wheeler insurance but wasn’t aware how the IDV is calculated. I have come across this term multiple times Thank you for sharing the same.

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