What Is No Claim bonus (NCB) In Bike Insurance ?
This article is about No Claim Bonus or NCB in bike insurance. It begins with a brief introduction about the need for bike insurance and then explains what a No Claim Bonus or NCB means. The article then discusses some of the benefits that can be availed under this feature.
Bike insurance offers financial coverage against a host of damages that might be caused by your two-wheeler to a third party individual or property due to an accident, or, any damage caused to your bike. The repair and refurbishing of vehicles often assume huge costs and so it is always wise to have your bike secured with an insurance policy after purchasing it. In this, you do not have to spend any extra money on your own but can also be guaranteed of the proper maintenance of your bike. Also, it is mandatory for all bike owners to have at least a third-party bike insurance plan to avoid legal penalties.
There are several factors that play a significant role in your bike insurance premium and one such factor is a No Claim Bonus or a NCB. Availing this benefit often leads to a lower rate of premium for the insurance and in this article we are going to tell you all about NCB and its added benefits.
What Is No Claim Bonus (NCB) In Bike Insurance?
No Claim Bonus (NCB) is a discount that you can avail of towards the own-damage premium of your bike insurance if you do not make a claim during a policy year. In other words, an NCB is a financial strategy used by Bike insurance providers to promote safe driving.
By being careful of not sustaining or causing any damages to your bike, you do not require the financial assistance for additional repairs and in return of this, insurance providers give you a reward called the NCB that can be redeemed by you and is reflected as a decrease in the premium at the time of policy renewal. As a bonus for not claiming any money from your insurance provider, NCB comes with the following benefits in bike insurance.
Benefits of No Claim Bonus In Bike Insurance
Acquiring a bonus of any kind comes with certain advantages. The following are ht list of benefits that anyone with a bike insurance is promised under a NCB -
- Reduced Premium
A NCB helps you to lower the premium for your bike insurance policy and can go up to 50% discount of your own-damage premium as a reward for not making a claim during the policy year. To help you understand better, in case you have earned a NCB of 20% and your own-damage renewal premium for the subsequent year is INR 15,000, you will pay INR 12,000 due to the NCB discount. However, your NCB bonus will come to be undone if you make even a single claim, impacting your NCB accumulated over the years.
- Transferability
Not many people might be aware about it, but a NCB in bike insurance is actually transferable. You must bear in mind that the NCB is designed to benefit you, not the bike and so even if you change your insurance company for your bike, the NCB benefit moves along with you. For example, if you have a NCB of 30% from your existing bike insurance provider, the percentage of the benefit is transferred and accepted by the new insurance provider at the time of Bike Insurance renewal. However, there might be different terms and conditions under different insurance companies and you be wary of abiding by it while making this transfer.
- Promotes Road Safety
NCB encourages bike owners to ride their vehicle with utmost safety on the roads. This results in overall road safety for everyone, helping minimise the chances of road accidents and other mishappenings.
Also, Read
Two Wheeler Insurance Comparison - Importance, Steps and More
IRDAI Guidelines For Bike Insurance Policies In India
Take Away
These are the broad benefits of having a NCB in bike insurance. However, a little word of advice can go a long way in ensuring that you have comprehensive coverage for your vehicle. While deciding on NCB in bike insurance, you should remember to renew your policy on time. Not doing so could result in the dissolution of your NCB and no discount on your premium rates.
Furthermore, you can only claim a NCB from a single policy at a time and in case you decide to cancel your bike insurance policy, the NCB that you earned can also go to waste Hopefully you are now aware of NCB in bike insurance and its benefits and it is always wise to secure your vehicle with an insurance to protect it from further damages or accidents.
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.
