No Claim Bonus (NCB) in Bike Insurance - Meaning, Benefits and Savings Guide

Is NCB really saving money on bike insurance every year? Yes, NCB full form in bike insurance is No Claim Bonus, which works as a renewal discount to the policyholder on the policy premium. If a policyholder completes a policy year without making any claim, they benefit from the no-claim bonus. Hence, ride safely and get a discount on renewal premiums. 

Your NCB in bike insurance belongs to you, not your bike. That means you can take it with you if you sell your current bike, buy a new one, or even change insurers.  Just make sure you renew your policy on time. You usually get a 90-day grace period after expiry. Miss that window, and you lose the NCB you’ve built up. This guide breaks down what NCB is, why it matters, how it’s calculated, and how it helps you cut down your insurance premium each year.

What is NCB in Bike Insurance?

NCB in bike insurance refers to the discount on the Own Damage (OD) premium given to a policyholder who does not make any claim during the policy year. The benefit starts at 20% after the first claim-free year and increases to 50% after five consecutive claim-free years.

This reward system encourages responsible riding habits. Instead of filing claims for minor repairs, many riders choose to manage smaller expenses independently to preserve their accumulated NCB benefits.

Another important point is that the bonus belongs to the policyholder, not the bike. This means your NCB can be transferred when you buy a new bike or switch insurers through the NCB transfer process.

If you are planning your next policy renewal, checking your eligible NCB percentage before renewing can help reduce your premium considerably. Bajaj General Insurance offers digital renewal support that makes policy management easier and quicker.

Also Read: How to Get Cashless Bike Insurance? | Bajaj General

What are the Benefits of No Claim Bonus in Bike Insurance?

No Claim Bonus (NCB) is one of the most significant benefits offered by bike insurance providers. It rewards policyholders who have not made any claims during the previous policy term. The following are some of the benefits of NCB:

Concession on Premium

Policyholders who have a good driving record and have not made any claims during the previous policy term are eligible for a markdown on their premium. The rate of concession increases with the number of claim-free years.

Higher Savings

NCB helps policyholders save money on their premiums, which can be used for any purpose they wish. These savings can be used for other expenses for your car or to make investments in different avenues.

Easy Renewal

Policyholders who have NCB can easily renew their policy without having to go through the lengthy process of filling out forms and providing documentation.

Why is NCB in Bike Insurance Important for Bike Owners?

NCB in bike insurance is important because it directly lowers your renewal premium and rewards claim-free riding behaviour. Over time, these savings become substantial. Here is a detailed understanding of what are the benefits of NCB in bike insurance:

1. Discount on Policy Premium: No claim bonus allows you a 20% to 50% discount on your new bike insurance policy premium, depending on your claim-free policy years. Therefore, no claim bonus bike insurance lowers the amount you have to pay to renew your bike insurance.

2. Prioritising Your Ride Safety: It motivates drivers to be more responsible and cautious while riding on roads, which helps reduce accident rates or claims. So be careful while driving and avoid reckless behaviour. 

3. Incentive for Policyholders: For those with a good claim history, NCB is a great financial incentive that reduces the burden of high premiums in subsequent years.

4. Long-Term Savings: The longer you maintain a claim-free record, the higher the discount, leading to substantial savings over time.

5. Improved Policy Benefits: NCB helps in building a good relationship with the insurance company, ensuring smoother policy renewals with reduced costs.

Also Read: Is Bike Insurance Mandatory For 5 Years?

How Does NCB in Bike Insurance Work?

Your NCB is a reward to responsible policyholders who maintain claim-free policy years. Bike insurance NCB means that if you have not made any claim in a policy year, NCB allows a 20% discount on the OD premium at policy renewal. Moreover, for 2 claim-free policy years, it goes to 25%. The discount increases up to 50% after 5 claim-free policy years.

Remember, it is better to save your insurance claim for big expenses such as expensive crashes. So, try to pay for minor fixes and enjoy rewards for claim-free policy years.

Suppose you have 3 claim-free years and your own damage insurance premium is 18,000. You will receive a 35% discount on the premium. So, you can save 6,300 and pay 11,700 during your policy renewal. For a maximum of 5 claim-free years, it goes up to 50%, so you only have to pay 9,000 at policy renewal.

This instance signifies the importance of maintaining a claim-free policy year record. However, it is equally important to check once that making a claim is worth the loss of NCB in bike insurance.

What is NCB Protection Add-On Cover in Bike Insurance?

An NCB Protection Add-On cover is a feature that allows policyholders to retain their accumulated bonus even after making a claim. This add-on is particularly beneficial for minor accidents or damages that require filing a claim without forfeiting your NCB benefits.

Key Benefits

1. Non-Cancellable Bonus: This ensures that one or several claims do not make you start from scratch in terms of NCB.

2. Peace of Mind: It covers any unexpected or accidental damages that give policyholders peace of mind.

3. Money Saving: Even though this cover makes your premium increase, it saves money in the long run.

For example, when you own a car with a 50% NCB and make a small claim, this add-on will help you retain your bonus during renewal, thus making it a worthwhile investment for risk-averse riders. Choosing an NCB Protection Add-On becomes relevant for individuals who value their financial security and safety.

Since this add-on helps secure your bonus, no matter what the circumstance may be, your future gains will be protected. This add-on proves to be highly beneficial for riders who travel through congested areas regularly.

How to Check NCB in Bike Insurance?

Before renewing your policy, it is important to verify your accumulated NCB percentage, as this directly affects the discount you receive on your bike insurance premium. Thankfully, checking your NCB details is now simple and can be done through easy methods.

1. Policy Document: Review the breakdown section in your insurance policy to find the applicable NCB.

2. Insurance Provider: Contact Bajaj General Insurance Limited's customer care team through their toll-free number or email to inquire about your claim history and the applicable NCB percentage.

3. NCB Certificate: Request an NCB certificate when switching insurers to transfer your bonus.

How to Calculate NCB for Bike Insurance?

Understanding the NCB percentage structure can help riders estimate their renewal savings more accurately. Here is how insurers generally calculate NCB for bike insurance based on consecutive claim-free years:

For example, suppose your bike’s OD premium is ₹8,000. After one claim-free year, you may receive a 20% NCB discount, saving you around ₹1,600 on your renewal. If you continue without making claims, the discount can increase gradually to 25%, 35%, 45%, and eventually 50% after five consecutive claim-free years.

By the fifth year, your savings could reach nearly ₹4,000 on the OD premium alone. This shows how maintaining a claim-free record can significantly reduce long-term bike insurance costs.

Also Read: How To Check Bike Insurance Policy Status Online

What are the Things to Remember About NCB in Bikes?

To make the most of your NCB in bike insurance, it is important to understand a few essential rules related to policy renewal, claims, and bonus transfer. Knowing these points can help you retain your accumulated discount and avoid unnecessary loss of benefits.

1. NCB becomes nil in case the policyholder files a claim.

2. NCB can be transferred to the new vehicle in case of substitution of the vehicle of the same class.

3. The validity of NCB is 90 days from the date of expiry of the policy. Therefore, you should renew the two-wheeler insurance policy in time to avail of the benefit of NCB.

4. NCB can be utilised within three years when the existing vehicle is sold and replaced with a new vehicle.

5. NCB recovery can be done in case of a name transfer on the RC of the vehicle.

Two-wheeler insurance is an important investment for every bike owner. Opt for online 2-wheeler insurance as it is quick and hassle-free.

How to Transfer NCB to New Bike Insurance?

Transferring your NCB to two-wheeler insurance is simple. Here is a detailed guide:

1. Obtain an NCB certificate from your current insurer.

2. Provide the certificate and policy details to the new insurer.

3. Ensure the transfer is completed within 90 days of your previous policy’s expiry.

What are the Documents Required for Transferring NCB?

To complete the NCB transfer process, you may need the following documents:

1. NCB certificate from the previous insurer

2. Copy of the previous policy

3. Vehicle registration certificate

4. Identity proof (if required)

Also Read: Get Bike Insurance Details Using Vehicle Registration Number

Final Word

NCB in bike insurance is one of the best rewards you can earn on your policy. It cuts your renewal premium, rewards safe riding, and helps you save more each year you do not make a claim. If you ride carefully and avoid claims, the bike insurance no-claim bonus builds up and lowers your costs over time. 

Whether you are renewing or buying a new bike, knowing how NCB works helps you choose better cover and keep your two-wheeler protected without overspending.

Frequently Asked Questions

How to retain NCB after vehicle sale?

You can retain your NCB after selling your bike by obtaining an NCB retention certificate from your insurer. This certificate allows you to transfer the accumulated bonus to your new bike insurance policy.

Can I transfer my NCB from one bike insurance plan to another?

Yes, you can transfer your NCB from one bike insurance plan to another. Usually, policyholders carry forward their No Claim Bonus discount to the newly purchased bike insurance policy.

Is it possible to claim NCB if the policyholder has already made a claim on their previous bike insurance policy?

No. In this scenario, the policyholder cannot claim NCB. NCB is available to a policyholder who has not made any claim during the previous insurance policy term.

Can I get NCB for my second-hand bike?

It depends on the insurer's policy terms and conditions. You need to ask your insurer or bike insurance provider for the NCB retention certificate and details to get NCB benefits for a second-hand vehicle.

Can I use my NCB / No Claim Bonus for more than two bikes or vehicles?

Yes, you can use your No Claim Bonus on two or more bikes or vehicles. It depends on your insurer's terms and conditions and policy terms. You can transfer NCB for each bike.

Can I transfer my NCB for my newly purchased bike?

Yes. When you purchase a new bike, you can transfer your NCB. Remember, within 90 days from the expiry date of your previous bike insurance policy, you must transfer your NCB to the new policy while purchasing the new bike.  Keep your previous bike insurance policy details to transfer the NCB to the new insurance provider.

Does NCB expire?

Yes, NCB expires if there is a break in the continuity of your insurance policy. To retain your NCB, you must renew your policy before the grace period ends, typically within 90 days of the policy's expiry date. Failure to do so will reset the bonus.

Do I lose my NCB if someone hits my bike?

If your bike is hit by someone else, and the damage is claimed through their insurance, you will not lose your NCB. However, if you claim from your own insurance, the NCB may be affected.

How long is the no-claim bonus valid?

The validity of the NCB is usually one year. If you don’t renew your insurance policy before the expiry date, you may lose the NCB.

What is the maximum withdrawal from NCB?

The maximum NCB discount can range from 20% to 50%, depending on the number of claim-free years you have. The longer the time without a claim, the higher the NCB discount.

What causes the loss of NCB?

The loss of NCB occurs primarily when you file a claim during the policy term. Additionally, failing to renew your bike insurance policy within the stipulated grace period will result in forfeiture of your accumulated bonus, which will be reset to zero.

Does NCB apply to third-party bike insurance?

No, NCB applies only to the Own Damage component of a bike insurance policy. It does not affect the premium for third-party liability insurance, which is mandated by law and has a fixed pricing structure.

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