How No Claim Bonus Is Calculated In Motor Insurance?
How No Claim Bonus Is Calculated In Motor Insurance?
Table of Contents
Due to its provision for both third-party coverage as well as protection against own damage or losses to the vehicle, two-wheeler insurance is essential. The value of the insurance itself and its other subtleties, like the NCB, cannot be ignored. The majority of individuals may have heard the phrase but may not have fully understood it. Here we seek to explain the meaning and method of calculation of NCB.
Why Is NCB Important For Your Two Wheeler Insurance?
No Claim Bonus, often known as NCB, is the reward you receive for not filing an insurance claim during the policy year. Simply put, this implies that your insurance company will give you discounts for maintaining your automobile and operating it safely.
Furthermore, in accordance with the standards outlined in the India Motor Tariff, NCB is gradually enhanced over the course of claimless years. The NCB reverts to zero for any type of claim submitted, thus one must resist the urge to use their insurance in the event of small losses and repairs in order to maximise the benefits of this incentive.
Calculation Of No Bonus Claim
Therefore, your NCB will continue to accrue on top of the prior one if you sell your old automobile and buy a new one. Because NCB insurance always extends to the policyholder and not their vehicle, these benefits are given. Refer to the following table to comprehend how a no claim bonus calculator functions:
|
Age of the policy with no claim made |
Percentage of No Claim Bonus |
|
Post one year |
20 |
|
Post two consecutive years |
25 |
|
Post three consecutive years |
35 |
|
Post four consecutive years |
45 |
|
Post five consecutive years |
50 |
As it can be seen, from the second year of the insurance period forward, the No Claim Bonus is applied. Your insurance company gives you a 20% discount on the premium amount after the first year if no claims are made. This can last up to five years straight and starts the second year.
Some Factors To Keep In Mind:
- One must pay close attention to NCB while purchasing a plan for two-wheeler insurance and keep the following in mind:
- In order to use the NCB service, one must check for the own damage insurance provision in their policy. There is no No Claim Bonus available on third-party insurance premiums.
- No Claim Bonus in two-wheeler insurance is not granted for the next year after a claim has been lodged; • NCB is discontinued when the insurance contract is not renewed for more than 90 days following its expiration.
- Transfer NCB when purchasing a new vehicle
- The NCB is even transferable from one insurance provider to another, so make sure to claim it when your two-wheeler insurance is renewed.
- According to the terms and conditions, the following insurer is required to offer the following slab of NCB.
- Owners of NCB two-wheeler policies have the option to purchase an NCB protection cover, which allows them the power to protect their NCB even if they file a claim during the term of the policy. But in this instance, the premium is a little bit higher.
Conclusion
As we can see, the monetary benefits of the NCB claim are undisputed. If one fails to reap these benefits, then they are depriving themselves from a lot of profit. With that in mind, ensure that you take all the measures and confirm a robust NCB policy in place at the time you make your purchase.
Also read: Learn the Easiest Way To Download A Copy Of Your Bike Insurance Plan
