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When you renew your bike insurance online , you might notice that the premium sometimes becomes lower even though your coverage remains the same. This is because of a benefit known as “No Claim Bonus” or “NCB”. Many bike owners know what NCB is, but not everyone understands how valuable it can be.
Understanding NCB can make a real difference in managing your insurance costs wisely. So in this blog, let’s learn the meaning of NCB, how it works, and why it can help you save on bike insurance premiums.
What is NCB?
The full form of NCB is No Claim Bonus. It is a reward that the insurance company gives you when you do not make any claim during the year. This reward comes as a discount of 20% to 50% on your insurance premium when you renew your policy.
The best part is that you can carry this discount with you even if you buy a new bike. So your NCB stays with you, not with the old vehicle.
1 Let’s understand this with an example:
Imagine your bike premium this year is Rs. 1,000. You ride carefully and do not make any claims this year.
Next year, the insurance company gives you an NCB of 20%. This means you get a discount on your premium. So next year you will pay:
Rs. 1000 - 20% = Rs. 800
You saved Rs. 200 just because you did not make a claim!
Features of No Claim Bonus (NCB)
| Features | Description |
|---|---|
| Discount on Premium | NCB gives a 20% to 50% discount on the Own Damage (OD) part of your bike insurance premium. |
| Starts from 2nd Year | You can claim NCB from the second year of your policy if no claim was made in the first year. |
| Transferable | You can transfer NCB if you buy a new bike or switch insurance companies. |
| Encourages Safe Riding | Rewards careful riders, promoting safe and responsible riding. |
| Doesn’t Affect Add-Ons | Choosing or removing add-ons does not change your NCB. |
| Long-Term Savings | The longer you stay claim-free, the more you save on future premiums. |
How to Calculate No Claim Bonus?
You can start getting a No Claim Bonus starting from the second year of your insurance policy. If you do not make any claim in the first year, your insurance company gives you a 20% discount on your next year’s premium.
This discount increases every year you don’t make a claim, up to 5 years in a row. To see how the NCB grows each year, look at the table below:
| Age of Policy | No Claim Bonus Percentage |
|---|---|
| After year one of no claim | 20% |
| After two years of no claim (continuous) | 25% |
| After three years of no claim (continuous) | 35% |
| After four years of no claim (continuous) | 45% |
| After five years of no claim (continuous) | 50% |
Benefits of No Claim Bonus (NCB) in Bike Insurance
No Claim Bonus (NCB) for bike insurance gives these benefits to the person who has the policy:
- Save Money on Premium: If you do not make any claim during the year, you get a discount on your bike insurance. This discount can be from 20% to 50%.
- Can Be Transferable: NCB belongs to you, not your bike. If you sell your bike or change the insurance company, you can still keep your NCB.
- Encourages You to Drive Safely: NCB motivates bike riders to drive safely and avoid accidents.
- Gives a Reward for Safe Riding: NCB is a reward for driving carefully. It gives you money back because you did not make any claims, even though you paid for insurance.
How NCB Affects Your Premium?
The No Claim Bonus (NCB) only gives a discount on the Own Damage (OD) part of your comprehensive bike insurance.
A comprehensive bike insurance premium has four parts:
- Own Damage (OD) premium for damage to your bike
- Third-Party Liability (3PL) premium for damage to others or their property
- Personal Accident Cover (PAC) premium covers accidents for you or your passengers
- Add-on cover premiums are an optional extra coverage
The 3PL and PAC premiums are fixed by law, so NCB does not apply to them. NCB also does not change if you add or remove any add-on covers. So, the total premium calculation looks like this:
Comprehensive Bike Insurance Premium = OD Premium + 3PL Premium + PAC Premium + Add-ons - NCB (on OD Premium only)
When Can You Lose Your No Claim Bonus (NCB)?
The No Claim Bonus (NCB) can be lost in certain situations:
- If you file any claim during the policy year, your NCB for that year is cancelled.
- You must renew your policy before it expires. If you renew after 90 days from expiry, the NCB is lost.
- NCB belongs to the policyholder, not the bike. You can transfer it to a new insurer or a new bike using an NCB Transfer Certificate. Without this certificate, you cannot get a No Claim Bonus.
- NCB is available only for comprehensive or own-damage policies, not for third-party insurance.
- NCB cannot be used on two different policies, even with the same insurer.
Can You Protect Your NCB?
You get No Claim Bonus (NCB) only when you renew your policy without making any claims. But sometimes accidents happen even if you are very careful. To help you keep your NCB in such situations, the insurance company offers an NCB Protection Add-on. This add-on lets you keep your NCB even if you make certain types of claims.
Here are some claims that are covered under NCB protection:
- Damage to your parked bike due to something hitting it
- Damage to your parked bike due to natural disasters like floods, earthquakes, or storms
Documents Needed to Transfer NCB
You will need the following documents:
- NCB Certificate from your previous insurer
- Copy of your old insurance policy
- Vehicle Registration Certificate (RC)
- Identity proof (if the new insurer asks for it)
How to Transfer NCB to a New Bike Insurance?
Transferring your No Claim Bonus (NCB) to a new bike or a new insurance company is very simple:
- Step 1: Get an NCB Certificate from your old insurance company.
- Step 2: Give this certificate and your policy details to the new insurer.
- Step 3: Make sure you complete the transfer in the given time period.
Note: Some insurers require you to complete the transfer within 2 years (24 months). So, contact your insurer to find out the transfer time limit.
Conclusion
No Claim Bonus (NCB) is one of the most useful benefits in bike insurance because it helps you save money every year by rewarding safe and claim-free riding. With discounts ranging from 20% to 50%, NCB can reduce your premium and make your insurance more affordable in the long run.
It is important to ride safely, renew your policy on time, and protect your NCB with add-ons if needed. By understanding how NCB works and how to maintain it, you can get the most value from your bike insurance and enjoy long-term savings.
FAQs
After 1 year of not making any claim, you get 20% No Claim Bonus (NCB) on your bike insurance premium.
No Claim Bonus (NCB) is a discount given by the insurance company when you do not make any claim during the policy year. This discount helps reduce your premium during renewal and can go from 20% to 50%.
NCB works very simply:
- If you do not make a claim, you get a discount on next year’s premium.
- The discount starts at 20% and increases every year you stay claim-free, up to 50% in 5 years.
- If you make a claim, the NCB becomes zero for the next year.
- NCB applies only to the Own Damage (OD) part of the premium.
A 20% NCB means you get 20% off on the Own Damage part of your bike insurance premium because you did not make any claim in the last year.
Yes, it is very good to have NCB because:
- You save money on your premium.
- The discount grows every year.
- It rewards safe riding.
- You can transfer NCB even if you buy a new bike.
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