What is NCB in Bike Insurance? Benefits and How It Works

If you are a bike owner with two-wheeler insurance, you are already familiar with the term NCB. NCB or no claim bonus is crucial to your two-wheeler insurance policy. So, if you are wondering what NCB in bike insurance means and how it benefits you, you have come to the right place!

Read this blog further to understand what NCB in bike insurance entails, how it works, its benefits, and how it can help you save more on your bike insurance premiums.

What is NCB in Bike Insurance?

A bike insurance no claim bonus is a discount your insurance provider offers on the premium you pay for your bike insurance policy. This discount is provided to you for not made any claims during your entire policy term. In short, if you did not make any claim in your bike insurance in preceding policy year, your insurance company rewards you—with a discount on the bike insurance premium when you renew your policy.

How Does NCB Work?

NCB or bike insurance no claim bonus is your reward for riding your bike safely. Here is how NCB works:

1. No Claim Year: You earn no claim bonus each policy year and do not claim on your bike insurance. So, the more consecutive no-claim years you have, the more discount you get on your bike insurance premium on renewal.

2. Accumulation of Discount: Your NCB or no claim bonus discount is 20% in the first claim-free year. This can accumulate up to 50% over five consecutive claim-free years. For instance, if your bike insurance premium amounts to ₹10,000 and you have an NCB of 20%, you will only pay ₹8,000.

3. Transferable: One of the best parts about your bike insurance NCB is that you can transfer it to any of your vehicle. It is tied to you, the insurance policyholder, not your bike. So, if you sell your bike to buy a new one, you can transfer the no-claim bonus to your new bike’s insurance policy.

4. Loss of No Claim Bonus: If, for some reason, you claim your bike insurance policy, you will lose the NCB. NCB means that in bike insurance, you must ensure you ride your bike safely, avoiding even the smallest of accidents. However, some insurers may continue to offer you “NCB Protector” as an add-on, allowing you to retain your bonus even after you make a claim.

Benefits of NCB in Bike Insurance

NCB, or no-claim bonus, is a significant aspect of your bike insurance policy. Therefore, it is essential to understand the benefits it offers:

1. Helps You Save More: NCB in your bike insurance helps you save a lot on your premium. Over the years, the discount accumulated by every consecutive claim-free year can go up to 50%. This means you will have halved the cost of your insurance coverage with your claim-free record.

2. Gives A Reward for Safe Riding: For any two-wheeler owner, safety comes first. Therefore, NCB is the reward for riding responsibly. By avoiding accidents, keeping yourself and your bike safe, and not making any claims in the active claim year, you are a safe driver and also help to reduce the risk for your insurance company. Therefore, you are rewarded with a lower renewal premium.

3. Offers Flexibility: NCB is flexible because it can be transferred. You may sell your old bike, upgrade it, or even switch your insurance company, and your NCB or hard-earned no-claim bonus moves with you. This means you can continue to enjoy lower premium benefits.

4. Provides Protection with the NCB Add-On: Some insurance companies offer an NCB protection add-on. This add-on allows you to make specific claims without losing your no-claim bonus. Accidents happen suddenly and are unforeseen, so this feature is beneficial if you are worried about losing your discount.

5. Encourages You to be Responsible: NCB is a valuable aspect of your insurance policy, and you should aim to achieve it yearly. This means your purpose is to be more responsible on the road. It is an incentive to avoid random risks and situations leading to claims.

How to Maximize Your NCB?

With many benefits, NCB in bike insurance is very important for any two-wheeler owner. But to get the most out of your no-claim bonus, you need to know how to maximize it:

Avoid Small Claims: Some claims, especially the small ones which cost you such as Rs. 500, can be covered by you as an out-of-pocket expense. It may be tempting to claim your bike insurance even for minor damages, but it would cost you more in the long run because you will lose your no-claim bonus. So, calculate minor repair costs against the loss of your bonus before you make a claim.
Switch Insurers Wisely: If you want to switch your insurance company, transfer your no-claim bonus to the new provider’s policy. All insurance companies allow you to carry your NCB to the new policy.
Drive Safely: The most straightforward way to maximise your NCB is to drive responsibly and avoid accidents or damage.
Opt for NCB Protection: Accidents are not in your control. So, if you are worried that you will lose out on your NCB due to an accident, consider getting an NCB protection add-on when you renew your policy or purchase a new one. This add-on allows you to make specific claims without losing your no-claim bonus.

Conclusion

NCB in bike insurance is a valuable benefit. By understanding the nuances of NCB in bike insurance and how it functions, you can effectively utilise it to lower your insurance premiums. Whether you are a seasoned bike rider or an amateur, maintaining your no-claim bonus is a wise way to save money and safeguard your finances on the road. Ensure you transfer your bike insurance's no-claim bonus when you switch insurers.