It’s All About No Claim Bonus (NCB) On Two Wheeler Insurance in India

Do you know that you can earn discount on your two wheeler insurance policy? Yes, for every claim free policy year, your two wheeler insurance company gives you a discount on your OD premium (Own Damage premium), referred to as No Claim Bonus (NCB). The No Claim Bonus ranges between 20% and 50%, if you do not file a claim with your insurance policy for bike every consecutive year. Thus, NCB is the best way to progressively reduce your two wheeler insurance premium.

Why do you need NCB?

Let’s take an example, if the IDV of your two wheeler after 6 years is INR 1,80,000 and you have not filed for a claim in these 6 years, then the premium you need to pay is approximately INR 2,800, as you earn an NCB of 50% on your OD premium. However, if you have filed a claim in these 6 years, then your premium amount for your two wheeler insurance plan is significantly higher. Once you have a better grip on what is NCB in bike insurance, you utilize it wisely and save a lot on your insurance premium.

How does NCB work in two wheeler insurance?

At Bajaj Allianz, we offer a long term two wheeler insurance policy, which enables you to get your two wheeler insured for 1, 2 or 3 years. Thus, if you opt to buy a two wheeler insurance policy for more than one year, you can enjoy hassle-free 2 or 3 years without any renewal reminders. Both the annual as well as multi-year policy give you the benefit of No Claim Bonus during two wheeler insurance renewal. However, it works differently in both the scenarios. Have a look at the following table, to get a better understanding of the NCB benefit for long term and annual two wheeler insurance policies.

NCB Feature	Multi-year two wheeler insurance	Annual two wheeler insurance
NCB benefit	NCB benefit can be fixed or incremental depending on the insurance company.	NCB benefit is fixed in case of annual two wheeler insurance policy.
NCB benefit after a claim	NCB reduces after filing a claim, but does not become nil.	NCB becomes zero if you make even a single claim during the policy year.

  You should get in touch with your insurer before you buy a multi-year or single year insurance policy, as the NCB structure for all the companies vary depending upon their policy terms and conditions. Also, there is a provision to get the benefits of your NCB transferred in case you change your two wheeler insurance provider. And, you can also transfer the NCB from your old two wheeler to a new one only if it is of the same class and type as your previous two wheeler. One last thing you should remember is that you should file a two wheeler insurance claim only if the repair/replacement costs are very high and you can’t bear it on your own. For smaller amounts, it is best advised that you do not file a two wheeler insurance claim and earn the benefit of NCB (No Claim Bonus) on your OD premium during policy renewal.