Two-wheelers are one of the most sought-after vehicles in the country. Their popularity among buyers can be credited to their ability to drive through traffic without any issues. Bikes are one of the most suitable means of personal transport in the country, be it a metropolitan city or rural countryside. Apart from this, they are also affordable options for individuals looking for decent vehicles to maintain their day-to-day routines.
However, due to these factors, there is an increase in the number of bikes on the road. With such a spike in the number, the risk of road accidents has also gone up. Among the vehicles present on the road, two-wheelers are more prone to being heavily damaged in the event of an accident. However, with a two-wheeler insurance policy, you can ensure your vehicle’s protection. To encourage the purchase of a bike insurance cover, insurance providers offer various discounts and benefits when you purchase bike insurance online. To encourage policyholders to follow the road guidelines and maintain precaution when driving, insurance companies provide a discount called the No Claim Bonus.
What is the No Claim Bonus?
The insurance companies provide this bonus to the policyholders if they do not file a claim for the policy purchase’s first year. If the policyholder doesn’t file a claim for a year, they get a discount on the premium amount. This discount on the premium is called the No Claim Bonus.
The insurers mainly introduced the concept of the No-Claim Bonus to instil discipline in bike owners. A bike owner would take extra precautions and drive extra carefully if they know it will lower premiums for the insurance policy. If the policyholder continues to maintain their streak of not filing a claim, their bonus will get accumulated over the years.
How is the No Claim Bonus in two-wheeler insurance calculated?
The policy’s No Claim Bonus will be applied only after the first renewal of your comprehensive bike insurance policy. You must remember that the NCB applies to the ‘own damage’ part of the premium, which is the premium computed based on the Insured Declared Value (IDV) of the bike minus the cost of the bike’s wear and tear. This bonus is not applied to the third-party liability cover.
The discount begins at the policyholder receiving a 20% discount on their premiums after the first year of being claim-free. After the first year, the discount will increase by 5-10% during the policy’s renewal every year. Hence, for every year, you do not raise a claim, the discount keeps getting accumulated. It acts as a reward for the policyholder’s ability to drive without being involved in any accidents.
How to claim NCB?
When it is time for you to get your bike insurance renewal, you can go for the No Claim Bonus earned on the previous policy. You will get the discount for the claim-free years in the policy and apply the no claim bonus rate as per the accumulated discount rates. When you’re getting the renewal done, you must ensure the insurance company has included the No Claim Bonus (NCB) benefits in the insurance quote offered to you.
When is the NCB cancelled?
- If the policyholder files a claim during the insurance policy tenure.
- The NCB is not available for the third-party liability plan. It’s only for the Comprehensive cover insurance policy.
- If you fail to get the policy renewed within 90 days of the policy expiration date, the No Claim Bonus gets nullified.
Can you transfer the NCB when you purchase a new bike?
When you buy a new bike, your accumulated NCB will be transferred from your old vehicle to your new bike. The NCB discount is designed for the policyholder and not the bike and can be transferred if you buy a policy from another insurance provider.
By not filing a claim, the No Claim Bonus discount is a good way to save on your premium payments. The discount keeps getting accrued for every year the policyholder does not file a claim. To claim this discount, you must ensure the insurer applies it to your premium amount at the time of policy renewal.
Why is bike insurance a must?
A bike insurance policy provides bike owners with financial support to take care of accidental damages or medical bills from an accident. You must purchase the plan that is the most suitable for you. With the wide range of plans available, the process of selecting one can be a bit difficult. These websites hold information about the different plans and the two-wheeler insurance rate the insurance company offers. The process of comparing various plans and their features become effortless when you buy the policy online.
Along with this, when you buy the bike policy online, you can also use the two-wheeler insurance premium calculator provided on the insurer’s website. These calculators can help make an informed decision, as they help you understand how different factors will affect the premiums on the chosen plan.