What is No Claim Bonus ( NCB) in Two Wheeler Insurance
Jul 23, 2020

No Claim Bonus (NCB) in Two Wheeler Insurance

NCB stands for No Claim Bonus. A two wheeler policy holder is eligible for this benefit if he/she does not register any claim in the previous policy year.

Sometimes, the policy holder decides to bear the expenses of repair of the bike on his/her own, instead of filing a claim with the insurance company. In such a scenario, he/she becomes eligible for NCB, which is a percentage discount on the insurance premium amount that the policy holder will be paying during the renewal of two wheeler insurance policy but not when a new bike insurance policy is purchased as the NCB would be zero then.

This discount is applicable on the 'Own Damage Premium' component of the insurance plan. The discount usually ranges between 20% and 50%.

Why is NCB important?

NCB plays an important role in reducing the two wheeler insurance premium amount (OD Premium). It is a great way to progressively reduce the premium during two wheeler insurance renewal , as the percentage of this bonus increases with the consecutive years of claim not registered by the policy holder.

What is No Claim Bonus calculator?

The calculation of the NCB is done as indicated in the table below:

20% discount on OD Premium No claim made or pending during the preceding full year of insurance
25% discount on OD Premium No claim made or pending during the preceding 2 consecutive years of insurance
35% discount on OD Premium No claim made or pending during the preceding 3 consecutive years of insurance
45% discount on OD Premium No claim made or pending during the preceding 4 consecutive years of insurance
50% discount on OD Premium No claim made or pending during the preceding 5 consecutive years of insurance

Here are some points about NCB that the two wheeler policy holder should keep in mind:

  • NCB becomes nil in case the policy holder files a claim.
  • NCB can be transferred to the new vehicle in case of substitution of vehicle of the same class.
  • Validity of NCB is 90 days from the date of expiry of the policy. Therefore everyone should renew the two wheeler insurance policy in time to avail the benefit of NCB.
  • NCB can be utilized within 3 years (where the existing vehicle is sold and a new vehicle is purchased).
  • NCB recovery can be done in case of a name transfer on the RC of the vehicle.
  • Two wheeler insurance an important investment for every bike owner. An online 2 wheeler insurance purchase is quick and hassle-free.

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