What is NCB in bike insurance and how to make the most out of it?

An NCB or a No-claim bonus is a discount an insurance company offers on your premium when you do not claim any insurance amount during the insured year. This is an immensely useful feature for a comprehensive bike insurance holder as an NCB can bring the premium payment down to almost half its original value. 

Now that you know how not making an insurance claim can also be helpful for you, let’s look at how you can make the most out of it – 

1. Stay consistent – The No-claim bonus increases with every year that passes by without you having to make an insurance claim. After the first year, you can get a discount of 20% when you renew your insurance policy for bike. This discount increases upto 50% by the end of fifth year and stays stagnant at this level from there on.
   
2. Get the NCB cover add-on – It would be saddening to lose the accumulated NCB if you happen to get into an accident after a clean first year. Hence, you can avail the No-claim bonus protector cover and save yourself from losing the gained discount at a marginal increase in your premium.
   
3. Renew your insurance on time – The accumulated NCB gets lapsed if you failed to renew your two-wheeler insurance on time. The NCB can only be claimed when you renew your vehicle’s insurance or within 90 days of expiry of the existing policy.
   
4. Drive safe – The no-claim bonus is a part of the insurance industry’s initiative to reward skillful and responsible riders. Thus, driving safe and making sure you do not end up in a situation where you need to make an insurance claim is the best way to get the most out of the no-claim bonus that is included in your comprehensive bike insurance.
   

There are only a few more things to keep in mind when it comes to claiming the NCB and these are – 

1. The no-claim bonus is related to the individual and not the bike or the insurance company and hence you can easily transfer your collected NCB when you change your bike or even change the insurance company. In the event, you change your bike, notifying your insurance company about the same would be enough. While, transferring your NCB from the previous insurer to the new one, you would have to apply for an NCB transfer certificate. This certificate is provided by your existing insurer and is only needed when you buy/renew your insurance offline. However, do keep in mind that the NCB is only transferable from one bike to another and would become unusable when you upgrade your vehicle to a car or anything other than a bike.
2. NCB is only applicable on the personal damage component of the premium and is presented as nil for the third-party cover.

Equipped with all the required information, we hope this article helps you make the most out of a no-claim bonus that comes included when you buy a comprehensive bike insurance cover. All the best!