NCB Protection Cover in Two Wheeler Insurance
As a bike owner, you must have a two-wheeler insurance policy. However, if you have a comprehensive insurance plan then you might be aware of the NCB Protection add-on cover. Buying an NCB protection cover in two-wheeler insurance is considered as one of the significant decisions as it protects the No Claim Bonus even if you raise a claim. To know more about this protection cover, keep on reading.Read more
What is a No Claim Bonus Protection Cover in Two-Wheelers?
A No Claim Bonus or NCB is a discount on the premium given to the policyholder for not raising a claim during the policy tenure and encouraging safe driving practices. NCB is a feature that offers a maximum of 50% savings on premiums after five consecutive claim-free years.
However, if a policyholder raises a claim during the policy tenure then he/she will not be eligible to get the benefit of No Claim Bonus anymore. Whereas with the NCB Protection add-on, the policyholder gets to enjoy the benefits of the No Claim Bonus even if a claim for loss or damage is filed.
Features of NCB Protection Cover in Two Wheelers Insurance
Following are the salient features of NCB Protection Add-on Cover in Two Wheelers Insurance-
- A Bonus Deal-NCB cover guarantees low premiums for more than a year, depending on how many NCBs are collected.
- Easily Transferable- If you want to renew or transfer your policy to another insurer, you can transfer the NCB along with the protection add-on cover effortlessly.
- Extra Security-NCB protection cover costs about 5%-10% of the base policy or maybe a little costly. It keeps the NCB intact even though the insured raises a claim.
How does No Claim Bonus Add-on Protection Cover Works?
Let’s find out how NCB Protection Cover works with the help of an example:
Mr. X bought the NCB protection add-on cover with his comprehensive bike insurance plan. This premium amount of the updated bike insurance plan became Rs. 32,000. Since he did not raise a claim in the first year, the premium amount was slashed down to Rs. 30,000.
But in the second year, he met an accident and had to file a claim. However, with the NCB protection add-on cover in the 3rd consecutive year, his insurance premium amount was slashed down to Rs. 28,000.
What Is Covered Under No Claim Bonus Protection Add-on Cover?
The inclusions under the NCB protection add-on cover are as follows:
- It protects your no claim bonus in the event of an Own Damage (OD) claim raised for the loss or damage that occurred.
- There is no loss in the bonus of accumulated NCB for the initial 2 claims preferred during this policy per year.
- The renewal of policy must be with the company to avail NCB discount.
What Is Not Covered Under No Claim Bonus Protection Add-on Cover?
The exclusions under the NCB protection add-on cover are as follows:-
- When wrong claims are made in the existing policy.
- For hiding materialistic facts, misrepresentation, or any kind of fraudulent scenario.
Who can avail of the benefits of the NCB Protection Add-on Cover?
All motorbike owners who wish to protect their driving history and be eligible for premium discounts should go for NCB protector. They can be new bike owners or the ones who are going to buy in the future. Moreover, we recommend NCB Protection Add-on Cover, especially to those who own a superbike or an expensive bike. Also, if you reside in an accident-prone area, you must go for NCB Protection Cover.
Geographical Limit- Any two-wheeler registered in India can avail of this add-on cover.
Pricing- Based on the make and current Insured Declared Value (IDV) of the two-wheeler.
Cost of a No Claim Bonus (NCB) Protection Cover
You can purchase the NCB Protection Cover over and above the base policy. NCB Protection Cover is an add-on, therefore, cannot be purchased independently without already having a comprehensive or standalone own-damage two-wheeler insurance policy.
The premium of protection cover add-on varies from insurer to insurer. The premium of NCB Protection Cover is roughly between 5% to 10% more than the bike insurance base policy.
Termination of NCB Protection Cover
An NCB protection cover can be terminated by the insurer if:
- A policyholder makes a fraudulent OD claim.
- A policyholder hide necessary information related to the accident.
Ans: No, you cannot transfer NCB Protection Cover to any of your near and dear ones. You cannot transfer it by selling your motor vehicle to another party because it belongs to the policyholder, not the motorbike.
Note- The NCB Protection Cover is transferable only in case of death of the policyholder and is only transferable to the nominee.
Ans: This add-on cover is available with a comprehensive bike insurance plan and standalone own-damage bike insurance plans.
Ans: Yes, you can increase as many add-ons as you want with the base policy along with NCB cover.
Q4: Is it possible to use a single No Claim Bonus Protection Cover on two different bikes or multiple bikes?
Ans: No, the No Claim Bonus applies to just one bike insurance policy and one bike. The policyholder cannot use the No Claim Bonus Protection Cover feature for multiple bikes or insurance policies, but yes can be transferred from one policy to another.
Ans: It is not compulsory to get this add-on. Buy this add-on to protect your bike from accidents or damage.
Ans: We especially recommend this add-on for superbikes and expensive bikes, but anyone can benefit from the cover if they are highly prone to have road accidents and cause damage to the bike.
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