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All About Unclaimed NCB

Wish

Written by Sharad Bajaj

Updated Oct 15, 2023

When No Claim Bonus goes unclaimed, there are some situations in which you will still be able to take advantage of the discount.

When it comes to insurance for your bike or two wheeler, there are many jargons and terminologies that you may be unfamiliar with or confused by. One such term is No Claim Bonus or NCB. Let’s read all about what NCB is and what it means for you and your bike insurance policy if it is left unclaimed.

What Is No Claim Bonus?

No Claim Bonus or NCB refers to a discount that is given at the time of renewal of your bike insurance if you have not raised any claim during the policy tenure. It is given as a reward for cautious riding and for posing less of a risk to the bike insurance company. Thus as a result, when renewing your policy, you are afforded a discount upon your bike insurance premium. It is cumulative in nature and if you go multiple policy periods without raising any claim, the NCB offered to you will increase with every renewal.

You May Also Like To Read: Top Jargons to Know Before Buying Vehicle Insurance Online

What Happens When No Claim Bonus Goes Unclaimed?

If you have accumulated the NCB discount and your bike insurance expires without you renewing it, there is a few days grace period known as break in period for you to renew your insurance and still be able to take advantage of the NCB you have accumulated. However, if you still do not renew your bike insurance within this period, you will lose access to your accumulated No Claim Bonus.

On the other hand, it is important to note that No Claim Bonus applies to you as the policyholder and not to your vehicle. This means that if you sell your bike and it has unclaimed NCB, it will remain valid for some time (depending on the insurance company) and you will be able to access the discount again if you purchase a motorcycle and insure it during the grace period, which is usually 2-3 years.

How To Transfer the Unclaimed NCB?

If you have accumulated a No Claim Bonus discount and wish to transfer it from one insurance company to another, you will need to obtain an NCB Certificate from your current insurance company. When you purchase a new insurance policy, you can submit the NCB Certificate alongside your other documents and avail of the discount in your new policy, and continue to accumulate No Claim Bonus.

Takeaway

No Claim Bonus is thus easily transferable from one insurance company to another. Similarly, you can continue with availing of the discount even if you fail to renew your policy in time, due to the provision of a break-in period. No Claim Bonus is a reward for being cautious on the road and an effective way to reduce your insurance policy premium.

Also Read:

NCB In Two Wheeler Insurance

Tips to Reduce Motorbike Insurance Premium

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.

Wish

Written by Sharad Bajaj

Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. Read More

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.
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