All You Need To Know About No Claim Bonus in Two Wheeler Insurance

A bike insurance claim is the process by which a policyholder gets compensation from an insurance company for the expenses incurred by them relating to their bike. Thus, a claim is a cash outflow for an insurance company. Thus, when a policyholder does not make even a single claim during the entire policy period, the insurance company provides them with a reward known as No Claim Bonus (NCB).

Let’s explore this reward in detail for two wheeler insurance. Read on.

What is No Claim Bonus in Bike Insurance?

No Claim Bonus in bike insurance is a reward that an insurance company gives you for riding your bike safely on the road and not making any claim during the policy period. The insurance company gives you this reward in the form of a discount on the own-damage premium of your policy at the time of renewal. NCB starts from 20% and can go up to 50%, depending on the number of claim-free years.

Benefits of No Claim Bonus In Bike Insurance

A No Claim Bonus, as the name suggests, offers the following benefits:

  1. Reduces the Premium: The No Claim Bonus helps you lower the own-damage premium of your bike insurance policy at the time of renewal.
  2. Keeps You Motivated: No Claim Bonus works as a reward for not registering a claim and therefore keeps you motivated to ride carefully on the road and adhering to the traffic rules in order to avoid any mishap.

A striking feature of No Claim Bonus is that it belongs to you and not your vehicle. So, in case you wish to switch to any other insurance company at the time of policy renewal but have accumulated No Claim Bonus of let’s say 45%, then your No Claim Bonus will also be transferred to the new insurance company.

How is No Claim Bonus in Bike Insurance Calculated?

No Claim Bonus becomes active at the time of the first renewal of your two-wheeler insurance policy. You start with getting a 20% discount on our bike insurance premium for the first claim-free year and it increases with every passing year wherein the claim is not made. The benefit can be availed at the time of policy renewal and only if the policy has not been lapsed by then.

Note that the NCB applies only to the own-damage component of your bike insurance premium and not the third party cover premium.

Refer to the table below to gain better understanding of No Claim Bonus:

Claim Free Years

No Claim Bonus

After 1 year


After 2 years


After 3 years


After 4 years


After 5 years



A No Claim Bonus is one of the great benefits of not making an insurance claim. Besides keeping you motivated, it helps you save money and maintain a good track record. Thus, you should avoid making claims for minor repairs and make claims only when it is necessary to keep your NCB intact.

Also Read:

Return To Invoice Cover (RTI) in Two Wheeler Insurance

Easy Steps to Renew Two-Wheeler Insurance Policy Online

"Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard."

Add-ons For Your Bike Insurance Policy

  • Zero Depreciation

    Like other assets, the value of your bike also depreciates constantly with time and the liability of this expense by default rests with the policyholder. A zero depreciation add-on protects you against the depreciation expenses incurred by your bike. Thus, if you opt for a zero depreciation cover, depreciation expense of your bike is not deducted from your claim amount at the time of a claim settlement. This add-on is available with comprehensive bike insurance plans as well as standalone bike insurance plans. This is one of the most popular and recommended bike insurance add-on covers.

  • Invoice Protection

    In case of total loss (more than 70% damage) or theft of your bike, the insurance company pays you the Insured Declared Value of your bike as compensation. However, this Insured Declared Value (IDV) is less than the invoice price which you pay at the time of purchasing your bike. The Invoice Protection add-on cover helps you claim the Invoice Price, i.e. total ex-showroom price of your bike plus taxes plus registration charges, of your bike in case of total loss or theft of your bike.

  • NCB Cover

    No Claim Bonus is the reward which is given to the policyholder for not making any claim during the policy period. This reward is offered by the insurer in the form of a discount on the own-damage premium of the bike insurance policy at the time of policy renewal. The NCB ranges from 20% to 50% of the own-damage premium depending on the number of claim-free years. However, if you make even a single claim during the policy period this NCB gets lost. But, with the NCB Cover, you can keep your NCB intact even after making a claim during the policy period.

  • Engine Protection Cover

    The damages incurred by the engine of the bike are by default not covered under a bike insurance policy. However, if you opt for an Engine Protection Cover, the insurer will be liable to compensate you for damages incurred by the engine of your bike such as damage due to leakage of lubricants, water ingress, hydrostatic lock, damaged gearbox, broken crankshafts or pistons and cylinders. The repair cost of the internal engine parts is often high and can sum up to thousands of rupees or more. Thus, addition of this add-on to your comprehensive or standalone bike insurance policy can save you from these expenses.

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