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The Significance of No Claim Bonus (NCB) in Bike Insurance
Nov 2, 2023

Understanding The Hype Around No Claim Bonus In Bike Insurance Policy

When it comes to bike insurance, one term that often garners attention and excitement is the No-Claim Bonus (NCB). But, what is the meaning of NCB? It is a unique feature of bike insurance policies that rewards policyholders for not making any claims during the policy tenure. NCB has gained significant popularity and is often considered a valuable benefit in insurance. Let’s take a closer look at what NCB means and what should you know about it.

What is No-Claim Bonus in Bike Insurance?

NCB, or No Claim Bonus, is form of incentive offered by insurance providers to policyholders if they do not make claims on their policy. It serves as a reward for safe riding and maintaining a claim-free record. The NCB is accumulated over consecutive claim-free years and can significantly reduce the premium for subsequent policy renewals. In simple terms, it acts as a financial incentive for responsible and cautious riding.##

How Can No-Claim Bonus Benefit You?

Now that you know what NCB in insurance is, let’s take a look at the benefits it offers.

- Saving on Premium

The primary advantage of NCB is the saving it offers on the premium amount during policy renewals. The saving percentage increases with every claim-free year, resulting in substantial savings on insurance costs. Claims are subject to terms and conditions set forth under Motor insurance policy.##

- Flexibility

The NCB is transferable when you switch your insurance provider or purchase a new bike. It can be transferred from one bike to another or from one policyholder to another, subject to certain conditions. This transferability adds flexibility and value to the NCB.

- Protection of No-Claim Record

In case of a minor accident or damage that does not exceed the NCB amount, policyholders may choose not to claim insurance. By doing so, they preserve their claim-free record and continue to enjoy the benefits of NCB in subsequent years. Claims are subject to terms and conditions set forth under Motor insurance policy.

- NCB and Premium Calculation

Insurance companies consider the accumulated NCB percentage to calculate the saving applied to the premium.## The NCB percentage varies based on the number of claim-free years, as per the insurer's predetermined NCB scale. Claims are subject to terms and conditions set forth under Motor insurance policy.

Can You Get an NCB?

Once you understand what No Claim Bonus is, you may note that to be eligible for the same, the policyholder must meet certain criteria.

- Claim-Free Years

The primary requirement for availing of NCB is to have consecutive claim-free years. Each claim-free year adds to the NCB percentage, with the scale varying among insurance providers.

- Renewal within the Grace Period

To retain the NCB, it is crucial to renew bike insurance within the grace period provided by the insurer. Failure to renew within this period may result in the NCB being forfeited.

When Can NCB Lapse?

It is essential to be aware of the circumstances that can lead to the lapse of NCB in bike insurance. Some of them are as follows:

- Break in Policy

If there is a break in the policy or you fail to renew bike insurance within the grace period, the NCB will be lost. A break in policy refers to not renewing the insurance on time or letting the policy lapse.

- Making a Claim

Any claim filed during the policy term will reset the NCB to zero. Therefore, it is important to assess the damage and consider the NCB implications before filing a claim for minor damages that are within the NCB amount.

Checking No Claim Bonus

For policyholders, it is important to know how to check the No Claim Bonus. Here's how you can check your NCB.
  1. Policy Documents: When you receive your policy documents after purchasing or renewing your bike insurance, they should include information about your NCB percentage.
  2. Insurance Provider's Website: Many insurance companies provide online portals or mobile apps that allow policyholders to access their policy information. Log in to your insurer's website or app using your credentials and navigate to the relevant section to check your NCB details.
  3. Contact Your Insurance Provider: If you are unable to find your NCB information through the above methods, you can reach out to your insurance provider's customer support. Contact the customer helpline and provide your policy details. The customer support team should be able to assist you in checking your NCB status.
  4. Insurance Agent/Broker: If you purchased your bike insurance policy through an agent or broker, you could contact them for assistance in checking your NCB. They should have access to your policy information and be able to provide you with the details of your NCB.
The No-Claim Bonus is an enticing feature of bike insurance that rewards policyholders for responsible riding and maintaining a claim-free record. By understanding NCB’s meaning in insurance and utilising it effectively, bike owners can make the most of this benefit and enjoy a rewarding insurance experience while protecting their assets.   ## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply. 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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