How to Reduce Your Bike Insurance Premium by Avoiding Small Claims?

For two-wheeler owners, adequate coverage is crucial to keep their prized possessions financially protected in case of major accidents. However, some utilize it even to cover minor bumps or scratches on their bikes, which is wrong. In this article, you will understand the significance of minimizing bike insurance claims for minor repairs.

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How to Lower Your Bike Insurance Premium?

In motor insurance, the NCB or No Claim Bonus holds significant weight, representing the most effective discount attained on your bike insurance premium. This discount increases each consecutive year if you do not raise a single claim. The table below illustrates how the NCB percentage rises annually to give a discount on own-damage insurance premiums:

  • 1st claim-free year: 20%
  • 2nd consecutive claim-free years: 25%
  • 3rd consecutive claim-free years: 35%
  • 4th consecutive claim-free years: 45%
  • 5th consecutive claim-free years: 50%

True to its name, NCB is a reward two-wheeler insurance companies give for maintaining a claim-free record. However, it is crucial to note that when you file a claim, your NCB resets to zero.

For instance, you have not raised a single claim in the last five years in your bike insurance. Unfortunately, this year, you unknowingly file a claim for all the minor dents and scratches that trigger a reset of your NCB cycle. During the policy renewal, you realize the premium has increased substantially as you claimed for nominal damages. Hence, it is advisable to file a claim only for significant losses or damages, theft, or incidents involving third parties.

Remember, the NCB does not affect the premium of third party bike insurance. This is because third-party coverage does not encompass damages to the insured bike or damages caused to the own vehicle. Understanding the nature of NCB, you should judiciously make claim decisions for minor dents.

People also read 13 Tips to Lower Your Two-wheeler Insurance Premium

Final Words!

Comprehensive bike insurance is an investment, as it will financially protect you in case of significant damages or repairs. However, you must avoid raising minor claims in your bike insurance policy to enjoy the benefit of NCB and save on your premium.

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^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.

^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.

#Savings are based on the comparison between highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.

*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.

*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)

#Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.

*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.

*Rs 457/- per annum (1.3/day) is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial). Premium is payable on an annual basis