No Claim Bonus for Two Wheeler Insurance Explained
No Claim Bonus for Two Wheeler Insurance Explained
Insurance policiesI offer great assistance if your two-wheeler meets any mishap on the road. The benefits provided by a bike insurance plan is worth the premium. Nonetheless, the insurance providers often offer special discounts to the policyholders. One such discount is No Claim Bonus (NCB). It is a discount that you can avail during the two wheeler insurance renewal provided you have not made any claim in the previous year. Below goes a detailed overview of No Claim Bonus
What is No Claim Bonus?
No Claim Bonus (NCB) is a reward granted to policyholders by the insurance providers for not filing any claim during the tenure of the insurance policy. The reward is given in the form of discounts on the two-wheeler insurance policy renewal. The percentage of discount depends on your insurance provider and generally ranges between 20% - 50%.
The NCB reward is exclusively applicable on Own Damage premium and doesn't apply to third party cover. NCB retains even if you change your vehicle as the bonus is transferable to a new two-wheeler purchased. In case of the vehicle owner's death, the policy along with NCB gets transferred to his spouse on providing death certificate.
Benefits of No Claim Bonus
No Claim Bonus is more than just a discount. It is beneficial to policyholders in many ways.
1. Saves Money
NCB reduces the amount of two-wheeler insurance premium by offering a discount of at least 20%. Thus, you can save money on the premium.
2. Encourages Safe Driving
Since NCB is available only if no claim is made in the previous year, the policyholders tend to be more cautious while riding. Thus, it encourages safe riding on the road.
3. Transferable
NCB is granted to the policyholder and not his vehicle. Thus, NCB remains with the policyholder even if he sells his insured two-wheeler or buys a new one as long as he pays the premium.
The NCB can also be transferred from one insurance provider to another if the vehicle owner decides to buy insurance from another insurance company.
How To Transfer NCB?
NCB can be easily transferred from one insurer to another online, offline or through an agent. Here are the procedures.
To transfer your NCB online, follow these steps:
Step 1: Visit the website of your preferred insurer.
Step 2: State the exact NCB amount.
Step 3: Provide the name of your previous insurer.
Step 4: Provide your previous policy number.
To transfer your NCB offline or through an agent, follow these steps:
Step 1: Contact your previous two-wheeler policy insurer.
Step 2: Request for transferring your NCB to a new insurance provider.
Step 3: Submit the required documents.
Step 4: Submit the NCB certificate provided by your previous insurer to the new insurer.
When NCB Gets Terminated?
NCB is a lucrative reward that two-wheeler policyholders can enjoy. However, under the following circumstances, you NCB can get terminated.
1. If Any Claim Is Made During The Policy Period
If you claim insurance benefits within the policy tenure, your NCB gets terminated.
2. If Policy Not Renewed Within 90 Days
If you fail to renew your two-wheeler insurance policy within 90 days after its expiry date, your NCB won't be retained.
No Claim Bonus not only gives a discount on premium but also serves as proof of being a responsible driver. Thus, it is wiser to earn NCB by not registering unnecessary insurance claims and retain its benefits by renewing your two-wheeler insurance policy on time.
Types of Bike Insurance You Should Know:
Third Party Two Wheeler Insurance
Comprehensive Two Wheeler Insurance Policy
You May Also Like To Read:
What is a Bike Insurance Renewal?
Bike Insurance Details by Registration Number
Fine for Driving Two Wheeler Without Insurance
How to Get Duplicate Two Wheeler Insurance Copy Online
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.
