When you purchase a bike, there are two things that you need to do – registration and insurance. While registration is a dealer assisted process, insurance is optional, i.e. either you can purchase your insurance cover or opt for the one offered by your dealer.
Bike insurance is undoubtedly one of the essential things to have when you own a bike. You can either purchase two wheeler insurance online or offline as per need. But it isn’t always that you will make an insurance claim. Questions like, ‘What if I don’t make a claim?’, ‘Will my premium go waste?’ are valid. If you are someone who ponders upon these questions, fret-not!
Insurance companies offer a No Claim Bonus (NCB) wherein if you, the policyholder does not make a claim, there is a concession in premium in the form of NCB.
What is No Claim Bonus?
As the insured, if you have not made an application for a claim during the entire policy tenure, then at the time of two wheeler insurance renewal online / offline, you are eligible for a bonus in the form of NCB. This NCB is a form of concession in your next bike insurance premium amount. The premium to your bike insurance generally increases as your bike gets older. Your bike tends to get more risk and more prone to accidents. Also, the cost of repairs goes upwards with an increase in inflation. Thus, these factors may result in a higher premium at the time of renewal. But since you are eligible to avail NCB benefits, the premium at least remains the same.
What are the benefits of NCB?
- NCB is a form of incentive that encourages you to abide by traffic regulations and drive safely.
- NCB is transferable, i.e. if you change your insurance company at the renewal date, these accrued benefits can be carried forward to your new insurance company. Thus, you need not worry about your NCB if you want to switch or upgrade your insurance policy.
- It reduces the premium amount significantly. Also, since your bike insurance policy is linked to the policyholder and not the vehicle, you can avail the same benefits on your new bike in case you sell your bike or opt for a trade-in.
What is the procedure to claim NCB?
If you are renewing your policy with the same insurance company, it automatically reduces your premium amount. Alternatively, if you change your insurer, you have to obtain an NCB certificate from the former insurance company to submit to your new insurer. You need to consider the number of years for which no claim has been made against your insurance policy and check if an appropriate concession is awarded at renewal.
How is NCB calculated?
No claim bonus ranges from 20% up to 50% for consecutive claim-free policy-years. Also, an important thing to note is that NCB is available only for comprehensive bike insurance plans and not for third-party covers.
Here is the table that shows concession in premium under NCB –
|Year||NCB Concession in premium amount|
|One claim-free year||20%|
|Two consecutive claim-free years||25%|
|Three consecutive claim-free years||35%|
|Four consecutive claim-free years||45%|
|Five consecutive claim-free years or more||50%|
Ensure that you compare the various policies before purchasing. Making use of a two wheeler insurance premium calculator can get you some of the best deals across different insurers. This tool facilitates easy comparison of the premiums when added or reduced with additional coverage options.
Now that you know how you can keep your premiums in check using NCB, make sure to take advantage of these benefits to the fullest. You can also purchase an additional NCB protector cover that allows you to retain your NCB benefits even if you make a claim.