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Maximum No Claim Bonus Explained

Updated On Jul 27, 2021

Wondering what NCB is? This article will tell you everything you need to know.

Purchasing a two-wheeler insurance requires a planned investment and thus is always special to the owner driver. Moreover, it has become a crucial part of most people’s day to day commutes. When a new two-wheeler is purchased we often spend a lot of that money for insurance, making sure that in case of a mishap it is protected. However, if the premium amount is a matter of concern for you, the No Claim Bonus will be a source of great relief. Without compromising on your insurance policy the bonus will reduce your insurance premium amount. Read this article to find out more.

Maximum No Claim Bonus Explained

What is No Claim Bonus in Two-Wheeler Insurance?

No Claim Bonus is an incentive offered to every insurance holder with a standalone  own-damage cover or a comprehensive insurance plan for every claim free year. The NCB is given as a reward for the safe driving habits of the insurance holder.

How Does No Claim Bonus Work in Two-Wheeler Insurance?

The policyholder is given this reward for every claim free year. Moreover, the NCB is cumulative in nature, i.e., the reward becomes higher with every consecutive year. It reaches its maximum at the 5 year mark. You get to use this savings at the time of renewal which gives the insurance holder a discount on the premium amount of their two-wheeler insurance. The following table will further elaborate the NCB calculation method:

No. of Consecutive Years

NCB in Percentage

1 Year


2 Years


3 Years


4 Years


5 Years


What are the Benefits of No Claim Bonus in Two-Wheeler Insurance?

Following are the benefits of having no claim bonus for two-wheeler insurance:

  • Lowers the premium amount of the two-wheeler at the time of renewal every claim-free year.
  • It is given to the policyholder as a token for their safe driving habits. Hence, it is awarded even if the insurance holder sells the two-wheeler or changes to a different insurance provider.
  • At the time of renewal , if the policyholder feels that they would like to shift to a different two-wheeler insurance the NCB is transferred automatically and with no hassle for the insurance holder.
  • It is a reward that offers compensation for not making use of the two-wheeler insurance after having paid for the policy.
  • It is a token incentive that encourages good driving habits among two-wheeler owner-drivers.


In a nutshell, the No Claim Bonus is a reward given by the insurance provider to their customers. It is only offered for every claim-free year as an incentive for safe driving habits and is only available with own-damage covers. Moreover, the reward is cumulative in nature and goes up to 50% in the fifth year. However, any time the insurance holder files for claim the accumulated NCB is disabled. Hence, it is advised that every insurance holder make sure the damage to their two-wheeler is not minor or at least more than the NCB they have accumulated after they file for two-wheeler insurance.

Read More: 

What Is NCB Cover? Why Is It Important For Your Two-Wheeler Insurance Plan?

How to Calculate NCB for Two Wheeler Insurance in India

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.

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