NCB in Bike Insurance

Do you remember your childhood? Like, when you were 5 or 6 and your father would tell you that if you behaved well the whole day, studied hard and did not make a nuisance, you would get a treat candy? A No Claim Bonus (NCB) is just like that; a candy for being a good, disciplined biker.

Now you may ask, what has a bonus got to do with good bike riding, right? If you have bought a bike insurance, but you have driven safely and maintained the bike properly, then you will not need to raise an insurance claim, because there is no damage to make a claim for!

Now insurers say that if you drive safely, and do not raise a claim for a year, on your policy renewal, you will receive a discount on the premium. This discount is called a No Claim Bonus.

Formally, an NCB is defined as a discount on premium awarded to the policyholder for not making a claim during the policy year. To deter rogue claims and instill some type of discipline, the concept of No Claim Bonus was introduced (though we love claims and helping out people!).

The good news is, if you continue with good behaviour and if your bike never faces any issues, damage or accidents, then you can accumulate your No Claim Bonuses over the years. We will see a little later how well this works for your pocket.

NCB Full Form in Bike Insurance

NCB full form in bike insurance is No Claim Bonus, which as the name suggests, offers a bonus renewal discount on bike insurance premium if you do not file a claim in the previous policy years.

Can I Transfer NCB When Buying a New Bike?

Yet another good news is, the accumulated NCB bonus is like the famous pug, it goes with you wherever you go. That is, it is transferable from your old vehicle to new vehicle, if you decide to buy a new bike, as long as you remain the policy holder. Your NCB is for YOU as the policy holder and not for your bike.

NCB means in bike insurance a bonus discount, which rewards you for not filing claims during a policy period. Therefore, it is quite significant in bike insurance as NCB helps save money over time by offering a discount on the renewal premium. 

Also, NCB benefits in bike insurance is more as it gets accumulated over time for all the policy years you don’t make a claim, thus, increasing the potential discount to a maximum of around 50% of the policy premium at the end of five consecutive claim-free policy terms. 

Further, it is one of the flexible bike insurance add-ons that can be transferred to the new insurer if you decide to switch.

While everything in motor insurance increases in price with time, you can still reduce your bike insurance premium as the policy years increase! This special benefit is offered by NCB in bike insurance, which works almost like a rewards system. 

You start by getting a 20% discount if you haven’t made any claim in your first policy year. Consequently, your discount keeps accumulating each year by 5% from your second claim-free year. The maximum NCB in bike insurance goes up to 50% over five consecutive claim-free years. 

So, in simple words, NCB works by rewarding you with a discount on your policy premium – the better driver you are, the more you save!

NCB (No Claim Bonus) is a discount applied to your existing bike insurance premium at the time of policy renewal: NCB in bike insurance is generally applied when you renew your two-wheeler insurance policy. Since it's an add-on, you can buy NCB only with Comprehensive and Own Damage policy, but not the Third-party policy.

Don't be greedy because after five years, the discount will not increase, even if you don’t raise a claim in a year. Now let us calculate what is current NCB in bike insurance with a simple example.

You bought a suave high-speed bike in 2010. There could not be another ideal biker a.k.a policy holder in the world like you. You paid your premium on time. You did not raise a claim in the first year or the second year…or the fifth year.

Now, you thought, you have had enough of this bike. You sell this bike and instead bring home another slick model in 2015. You have, along with your new bike, got your bike insurance as well. 

Suppose the own damage premium for the new vehicle is ₹3000. But you have accumulated NCB for 5 years. So, you will get up to 50% discount on the premium for your new vehicle. You will only have to pay ₹1500 for your own damage premium!

Here are the advantages of retaining your NCB in bike insurance:

1. Premium Savings: Everyone loves discounts! NCB in bike insurance can save you at least 20% on your annual bike insurance premium if you don’t make any claims during the policy period. 
2. Easily Transferable: You can easily transfer your NCB benefit whether you’re changing your insurer or your bike. Just make sure to transfer your policy before the current one expires!
3. Rewards Safe Driving: The NCB serves as a reward for being a responsible driver and car owner, encouraging safe driving habits.

NCB Protection Add-on can be bought for an additional premium over the base bike insurance policy. This means that NCB cannot be purchased independently and can only be bought along with a comprehensive or standalone own-damage two-wheeler insurance policy.

Also, the premium of NCB varies from insurer to insurer, which is roughly between 5% to 10% above the standard bike insurance policy; you should check the same with your insurer.

If Buying Online

If you’re going to buy your new bike insurance policy online, all you need to do is provide your old insurance policy number and the right NCB, and the name of the insurer; the rest of the process your new insurance company will manage.

If Buying Offline

In case you are buying your new two-wheeler insurance policy offline or via an agent, you will have to transfer your NCB by submitting your buyer-seller agreement- Forms 29 and 30. You will also need to write a letter requesting the transfer of your NCB from your existing insurance company. 

Your old insurance company will then issue an NCB certificate which you’ll need to submit to your new car insurance company.

You have to provide the following documents along with the application:

• Copy of delivery note that you’ve received for the sale of the old bike
• Copy of insurance policy of the old bike
• Copy of the booking form that you received for purchasing the bike
• Transfer application
• Buyer-seller agreement (Forms 29 & 30)
• Copy of transferring the old RC if you’re selling your old bike
• NCB certificate from the insurer

An NCB certificate is provided at the time of buying a two-wheeler insurance policy; it is used at the time of filing a claim or asking for NCB discount. 

To get a No Claim Bonus (NCB) certificate, the policyholder must contact the insurance provider and request one. For that he needs to provide your policy number and personal and vehicle details. After verifying the details, the insurer will issue the NCB certificate.

When is NCB Cancelled?

The NCB is reset to zero once you have raised a claim, irrespective of whichever year of your policy it is. Is there an exception to this? Of course, there is. If you have an NCB protection feature added in your policy, then this rule will not apply.

Is There a Way I Can Make a Claim and Still Retain My NCB?

Yes, there is a way depending on whether your desired insurance company provides the benefit or not. If your insurer allows it, you can go for an NCB Protect add-on as part of your comprehensive policy. With this feature, you can make a specific number of insurance claims (mostly just one) in a year without losing your no claim bonus. 

Some insurers may also put a condition on the number of years you should have gone without making a claim on your policy before the protection feature kicks in.

Following are the cases where NCB add-on will not be applicable in two-wheeler insurance:

• When the number of claims has exceeded the allowed number under the NCB Protection add-on.

• When fraudulent damage-related claims are raised or if there is any discrepancy in the facts regarding a claim. 

• NCB will be cancelled if the bike insurance policy is expired or not renewed within 90 days of the expiry or stipulated date.

• If you try to include or remove the NCB Protection cover mid-term.

• Another condition for NCB is that your two-wheeler must be repaired in the insurance company’s network garage. 

Following are some important things to know about No Claim Bonus in bike insurance in India:

• The NCB is available only with the Comprehensive Two-Wheeler Insurance Policy and not with the Third-Party Liability Plan. 

• NCB will terminate if you file a claim even a single time.

• NCB can be easily transferred to the new two-wheeler; just ensure you have the NCB certificate.

• Do not cancel your insurance policy before the end of the policy term as then your NCB will also be cancelled for that year.

• NCB validity is 90 days from the date of expiry of the policy, so remember to renew the bike insurance policy within time.

• It is important to know that you cannot share the NCB benefits between two different bike insurance policies.

So, the next time you are in the mood for some bike racing, remember there is a No Claim Bonus waiting for you on the other side of self-control. Also worth remembering is the fact that this reward is transferable to new vehicles and new insurers. 

Pro Tip! Keep Your NCB. Let go of small change. In other words, in the long run we have seen that making a claim for small damages to the vehicle, that is totally affordable, will make you lose on a substantial chunk of discount on your premium, because the NCB, on even making a single claim will switch back to zero, which looking at the larger picture, will be a bigger financial loss. So, it is best to keep your NCB alive and settle minor damages without raising a claim.