Working Of No Claim Bonus In Multi Year Bike Insurance Policy
You must have often wondered how the No Claim Bonus discount functions in a multi year bike insurance policy. Read on to find out.
As a bike owner, you must be familiar with what the No Claim Bonus is. It is a discount given at the time of renewal on a bike insurance policy if there have been no claims raised during the policy tenure, as a reward for being cautious and not posing any risk to the insurance company. You may not have considered how this works in a long-term insurance policy. Let’s read all about what a multi-year insurance policy is and how No Claim Bonus (NCB) works within it.
Also Read: No Claim Bonus (NCB) in Two Wheeler Insurance
What Is A Multi Year Two Wheeler Insurance Policy?
A multi-year insurance policy is one where you do not need to renew it annually. You receive a policy period that lasts for several years and you do not need to constantly remember the expiry or renewal dates. It is advantageous as it saves you the time and hassle of renewal for several years, while giving you robust protection for your vehicle for several years in one go, without risking the gap between expiry and renewal. It is hugely beneficial and saves you a lot of time. Let’s read about how NCB works in such a policy.
Suggested Reading: Why Is Multi Year Two Wheeler Insurance Cover A Smart Move?
How Does NCB Work In A Multi Year Two Wheeler Insurance Policy?
NCB is cumulative in nature and increases overtime in one year policies. When it comes to multi year two wheeler insurance, No Claim Bonus can be availed of till the policy is valid, regardless of whether a claim was raised during the policy tenure. For example, if you have accumulated 25% of No Claim Bonus, you will be able to avail of a 25% discount on your premium for the tenure of your multi year insurance policy.
It is important to note, however, that each insurance company will have a distinct method for structuring NCB and you should communicate with your insurance company clearly to have an understanding of their distinct policies.
Read More: Tips To Save Money On Bike Insurance
Conclusion
A multi year insurance policy for your two wheeler is surely advisable for a variety of reasons, with NCB being only one among many. You are now aware of how No Claim Bonus functions within such a policy and you will be able to take advantage of the discount associated with it.
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.
