All You Need To Know About The NCB For Bike Insurance, If Not Claimed

Bikes are valued assets of their owners. It costs a lot of money to keep it running and care for it. Having a bike insurance policy that provides maximum coverage is essential if you want to prevent these unwelcome and costly charges. Having a bike insurance policy that covers everything is invariably associated with a higher rate. Your insurance company gives you a discount on the premium of your bike insurance policy on subsequent renewals as a reward for not filing an insurance claim for the whole policy year. The No Claim Bonus (NCB) is the name given to this discount. 

Benefits of No Claim Bonus in Bike Insurance

Everyone wants a bike insurance policy that gives maximum coverage at a reasonable price.  One of the most significant discounts on your bike insurance price is the no-claim bonus. People who have comprehensive bike insurance will already be paying a higher premium. The higher the car's IDV, the higher the insurance rate. These are the reasons why the no-claim bonus is crucial:

• Huge Discount

NCB employs a cumulative approach. This implies that if you don't make a claim for a year, you'll get a discount on your bike insurance rate when you renew your policy. As a result, you will be required to pay a lower premium than you would have paid if you had filed a claim.

• Exceptional Savings

Bonuses for no claims are also cumulative. You will receive a big discount on renewing your coverage if you adhere to the terms and conditions and do not claim insurance for five years in a row. This will allow you to save money that would have otherwise been spent on your bike insurance premium.

• NCB Can Be Transferred

The best aspect about the no-claim bonus is that it is linked to the owner of the bike rather than the vehicle itself. If you plan to sell your insured bike and purchase a new one, the NCB component of your policy will follow you from one insurance provider to the next. When you acquire a new bike, this will help you save a lot of money on your insurance price. Purchasing a new bike is costly, and the insurance premiums are typically hefty as well. As a result, no-claim bonuses are particularly helpful when it comes to lowering the cost of your new bike insurance policy.

What Happens To Your No Claim Bonus If You Do Not Claim It? 

If you have acquired NCB but your current bike insurance is about to expire, you have a few days to renew it. Your unclaimed NCB will be terminated if you do not renew your bike insurance within this break-in period. A break-in period is usually 90 days from the date of expiry of your bike insurance. You can either renew your bike insurance policy or purchase a new one to retain the NCB. If you do not renew your bike insurance within this time frame, you will forfeit your accrued No Claim Bonus.

Also, if you sell your bike but leave your NCB unclaimed, it will be valid for up to 2-3 years. The duration varies depending on the insurance company. However, because the NCB is transferable, you can apply it to your new bike insurance coverage. 

How To Transfer Or Use Your Unclaimed No Claim Bonus?

You'll need an NCB Certificate if you're switching insurance providers and want to keep your NCB. You can receive the same coverage with your current insurer. You can submit this NCB Certificate for successful NCB transfer while obtaining a bike insurance policy online from a different insurance provider.

Take Away

Thus, the No Claim Bonus can easily be transferred from one insurance company to another. Due to the provision of a break-in period, you can continue to receive the discount even if you do not renew your policy on time. Thus, make sure to claim it and avail an affordable bike insurance premium.

Also Read:

Documents Required for Bike/Two-Wheeler Insurance Renewal 

How To Get Bike Insurance Renewal Done Quickly? 

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.