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How to Calculate NCB for Two Wheeler Insurance in India

Published On Oct 09, 2020, Updated On Oct 21, 2022

How to Calculate NCB for Two Wheeler Insurance in India

What if there were rewards for not filing claims? Wondering if this is possible. The No Claim Bonus is a well-known concept in the insurance sector that assists in relieving a policyholder's burden of paying premium. 

In simple terms, NCB refers to the offers and discounts provided to the policyholders who haven’t made any claim during the policy period. However, this feature is applicable only for the own damage insurance covers. 

In this article, we’ll help you understand the benefits of NCB, and how to calculate the discount for your two-wheeler insurance in India. Continue reading to find more information! 

Why No Claim Bonus Is Important? 

No claim bonus is just like the return gifts that are given to the policyholders by insurance companies for driving safely throughout the policy period. the concept behind NCB was to promote safe and secure driving to control the rate of accidents in India. You can redeem your bonus by paying a lower premium at the time of renewing your bike insurance policy. Besides this, you can also increase the sum insured for your policy. 

How Is NCB In Two Wheeler Insurance Calculated?

If you have not claimed for your two-wheeler insurance policy, then you will be eligible for a no-claim bonus from the second year of the policy tenure. An insurance company will offer you a discount of 20% on the premium amount if no claim has been raised during the first year of the policy. You can enjoy this benefit on your own damage policy for five years consecutively. Thus, the NCB discount percentage will range from 20% to 50%, contingent on the number of claim-free years. 

Refer to the following table to comprehend how a no-claim bonus calculator works:

Policy Age 

No Claim Bonus Applicable

 ( in percentage)

Claim-free renewal after 1st year


Claim-free renewal after 2nd year


Claim-free renewal after 3rd year


Claim-free renewal after 4th year


Claim-free renewal after 5th year


Hence, you can enjoy the maximum discount by driving safely on the roads  and making no claims every year on your two wheeler insurance policy. Let us understand how to calculate NCB for two-wheelers in India with the help of an example. 

Mahesh bought a bike insurance policy having premium of Rs. 10,000. He maintained his safety and was cautious while riding on the road. Thus, he didn’t make any claims in the first year. In order to reward Mahesh for driving safely, the insurance company provided a discount of 20% on the premium. Therefore, he’ll have to pay only Rs. 8,000 premium amount in the second year. And, the loop continues for 5 consecutive years. However, the premium range may vary depending on the year. 

Reasons For The Denial Of No Claim Bonus

Below-mentioned are the circumstances that can lead to the cancellation of your no-claim bonus. 

  • Your request for an NCB will be cancelled if you have made any claims throughout the policy period. 
  • NCB gets cancelled if the insurance coverage is not renewed within 90 days of the actual expiration date of the policy.

Frequently asked questions

Q1. Is a no-claim bonus applicable to third-party policies

No, you can only reap the benefits of the no-claim bonus on either your own damage policy or on comprehensive insurance. 

Q2. Is my no-claim bonus going to get dissolved if I change my insurance company?

No, you can transfer your existing no-claim bonus to the new insurance company. However, in order to transfer NCB, you will need a valid NCB certificate issued by the existing insurance company. 

Q3. Why should I buy two wheeler insurance plan that offers a No Claim Bonus? 

There are many benefits of buying a bike insurance policy with no claim bonus add-on. Some of them are mentioned below: 

  • Get rewards in form of bonuses and discounts for safe driving. 
  • You can easily transfer it from one vehicle to another as well as from one insurance company to another company.
  • It helps you in saving money by reducing the premium amount. 

Q4. For how much time my NCB will be considered valid? 

After the expiry of your insurance policy, a no-claim bonus will be in effect for two years. You can use your no claims bonus to reduce the cost of your insurance as long as you cover your bike within this time limit. You typically have to start over with zero NCB after the two-year period is through.

Also Read: 

Top Factors That Affect The Premium Of Your Two-Wheeler Insurance

Comparison Between First Party And Third-party Bike Insurance

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