No Claim Bonus for Two Wheeler Insurance in India

A No Claim Bonus (NCB) is a discount offered as a reward by the two wheeler insurance company to the policyholder on the own-damage premium amount of the two wheeler insurance policy. This reward is offered for not making a claim during the entire tenure of the bike insurance policy. The NCB discount percentage ranges between 20%-50% depending on the number of claim-free years. The NCB discount is available at the time of policy renewal.

How No Claim Bonus is Calculated in Two Wheeler Insurance?

The NCB Percentage is set by IRDAI.

NCB is available only if the policyholder has not made even a single claim during the entire policy period. Thus, if a policyholder makes even one claim, he/she is not entitled to the NCB. However, by opting for a bike insurance add-on cover known as the NCB Protect, a policyholder can keep his/her NCB safe and intact even after making a claim during the tenure of the policy.

Benefits of No Claim Bonus in Bike Insurance

The benefits of No claim bonus in bike insurance is mentioned below:

1. Retain NCB: The policyholder can retain the No claim bonus on their bike but not raise claim during their plan term.
2. Transferable: The NCB can be transferred to a different insurer in case if the policyholder does not file for any claim as it belongs solely to them. The benefits of No claim bonus can be availed of at the time of renewal of the two wheeler insurance plan.
3. Reduces Premium: If there is no claim raised by the policyholder during the entire insurance plan tenure, the collected NCB can be used as a discount at the time of payment of premium for bike insurance policy renewal.
4. Offers Reward: NCB can be used for giving rewards to the insurer for safely driving and filing a claim during the policy tenure. It is given in the form of a discount to encourage the policyholder to drive their bike safely on the road.

Who Should Get A No Claim Bonus Protect Cover?

Ideally, all bike owners should opt for the NCB Protection cover, however, it is more recommended for the following:

1. New riders
2. Bike owners who wish to save the reward for not making many claims.

How to Claim No Claim Bonus or NCB?

During the two-wheeler insurance policy renewal, you can earn the No Claim Bonus or NCB earned on the old insurance plan. For this you are required to take into account total claim free years in your insurance policy and then apply the NCB rate in order to claim a discount on premium paid towards the two-wheeler insurance policy. Also, ensure that your respective insurance company has included NCB discount in the two-wheeler insurance quote offered to you.

When Can a No Claim Bonus get Terminated/Cancelled/Not Available?

The accumulated No Claim Bonus can get nullified by making even a single claim during the policy tenure. The reason which can result in termination of No Claim Bonus are as follows:

• In case a claim has been made by a policyholder during the policy tenure, then they will not be eligible to avail any discount on premium paid towards the policy during the insurance plan renewal.
• In case, the policyholder fails to get their two-wheeler insurance plan renewed on time before the insurance policy lapses.
• The No Claim Bonus or NCB cannot be availed with a third-party liability plan as it is eligible only with a comprehensive two-wheeler insurance plan.