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No Claim Bonus: A Unique Feature of Two Wheeler Insurance

When you invest a huge portion of your hard-earned money in your newly bought possession, insuring it is the best thing to ensure. And if the premium is your concern, a bonus in your insurance policy sounds wonderful.

If you are new in the world of INSURANCE then let us tell you that you can earn a handsome discount by playing a little smart. No Claim Bonus is a reward offered by the insurer in case you don’t claim your two wheeler insurance during the policy tenure. Hence, all you need to do is to find a plan that offers a suitable NCB and save on premiums. Let’s know more about this insurance jargon to make the most of it!

Here are a few aspects of NCB, you should be aware of:

How does NCB Discount work for My Two-Wheeler?

No Claim Bonus is a reward offered by the bike insurance provider for not claiming your bike insurance during a policy tenure. It can be availed as a discount on the premium. However, you can get this discount at the time of renewal only! NCB ranges from 20% to a maximum of 50%, for every consecutive claim-free year. Let’s check how the discount is paid:

Policy Tenure

Percentage of NCB

1st claim-free year

20%

2nd claim-free year

25%

3rd claim-free year

35%

4th claim-free year

45%

5th claim-free year

50%

Can I Use NCB on Two Bikes?

You can’t use the acquired NCB on two different bikes at the same time. But if you sale the older one and buy a new one and want to shift the NCB then you can. Because NCB belongs to the insured not the vehicle.

How is NCB Transferred to Another Bike?

NCB can be transferred or retainable in case you replace your existing bike with a new one or if you want to change your existing insurance provider when the renewal is due. Transfer of NCB is an easy victory. Let’s imagine you own Royal Enfield in 2016 and the premium you pay is Rs. 18000. Out of the total premium, Rs 15000 goes towards own damage cover. If you don’t claim your insurance so far, you can claim 45% NCB at the time of policy renewal. If you want to switch the insurer for the same premium, now by applying the NCB availed with the previous insurance, you can end up paying Rs. 12000, instead of Rs. 18000.

If you want to transfer it to your new bike then you’ll require submitting Form 29, 30, accompanied with the application requesting for transfer of the NCB addressing to the existing insurer. On the basis of this, the insurer will issue an NCB certificate with a validity of three years. You’ll need to submit the certificate to the new insurer so that the NCB can be utilised.

In case you buy two-wheeler insurance online, the certificate wouldn’t be required, as a declaration would suffice. However, you shouldn’t hide any circumstances under which a claim was made, as the new insurer will verify every single detail with the previous insurer. At any point, if it finds you guilty, the insurer can reject your application.

Can I Get NCB on Third-Party Bike Insurance?

No Claim Bonus is only associated with Own Damage or Comprehensive Cover only. Hence, you can’t avail it if you own a Third Party bike Insurance only, irrespective of how many claim-free years you have.

When is the NCB Terminated?

Your NCB will be terminated in two situations, first, when you make a claim during the policy tenure and secondly if you don’t get the policy renewed within 90 days if you have missed the actual renewal date. Either of these incidents will lead to NCB termination when the acquired NCB turns to ZERO.

How Long is NCB Valid in Case of Two-Wheeler Insurance?

The NCB is valid for two years. It means NCB expires in two years. So, in case you are off the road for any reason, you have not possessed a policy for more than 2 years, you’ll have to start from the beginning whenever you take up a bike insurance policy.

Getting the Most Out of the NCB

 While buying your pricy possession, you go extreme when negotiating for discounts, freebies or for the financing aspect, where insurance thing seems to take a backseat. However, it is somehow possible to save on the premium offered by utilising the NCB in the right way. Here’re certain things to following this regard to get the most out of your NCB benefit:

  • In case of selling the old vehicle, ensure that only the ownership is transferred and keep a copy of the new entry in the RC book for future reference.
  • After receiving the delivery note, send a copy of the same to the insurance provider. Based on this, the insurer will issue an NCB certificate which is valid for 3 years.
  • This certificate has to be sent to the dealer from whom you are planning to buy your new vehicle. They will process the transfer process with the new bike insurer.
  • If you’re buying online, don’t ignore to check the various available options and compare them keeping the NCB thing in mind, along with the other aspects.
  • While switching the policy, at the end of the term or during the renewal, the existing insurer will provide the proof of no claims, which to be provided to the new insurer
  • It is advisable not to switch your insurer unless it is necessary. Remain with the same insurer and not claiming your insurance you can earn as much as possible NCB.

The Final Word!

There you have it – one of the most important aspects of two wheeler insurance, the NCB benefit. It is the element that helps in reducing the policy premium. It also makes you a skilled driver or a rider, by enabling you to master the skill of ride safe and not claim for the small damages. These further helps in earning more credibility and rewards form the insurer. However, you should consider buying a policy that comes with a good deal of NCB and save more on the premiums!

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