What is NCB in Bike Insurance?
No Claim Bonus (NCB) in bike insurance is a reward for maintaining a claim-free record during your policy period. If you do not raise a claim during a policy year, your insurer offers a discount on the own-damage bike insurance premium at the time of renewal. The discount increases with each consecutive claim-free year and can reach 50% after five years. NCB helps lower your two-wheeler insurance renewal premium while rewarding you for maintaining a claim-free record.
For example, you may get 20% NCB after one claim-free year. If you remain claim-free for another year, it can increase to 25%. NCB is applicable to the own-damage bike coverage premium. It does not reduce the third-party bike insurance premium.
Key Highlights of NCB in Bike Insurance
Here are the key things to remember about NCB in two-wheeler insurance:
- NCB is a discount available on the eligible own-damage (OD) premium of your bike insurance policy.
- It does not apply to the third-party component of bike insurance or a standalone third-party policy.
- The NCB discount generally starts at 20% after one claim-free year.
- It can increase with consecutive claim-free years and reach a maximum standard discount of 50% after five consecutive claim-free years.
- NCB belongs to the policyholder and not the bike.
- You can generally transfer your accumulated NCB when changing your bike or switching to another insurer, subject to applicable terms and conditions.
- Making a claim under the policy can affect or result in the loss of your accumulated NCB, depending on the policy terms.
- An NCB Protection add-on may help you retain your NCB after certain claims, subject to the insurer's terms and conditions.
- Always check your applicable NCB before renewing your bike insurance policy.
How is NCB Calculated for Bike Insurance?
NCB is calculated based on the number of consecutive claim-free years, and the discount is applied to the eligible own-damage bike insurance premium at the time of renewal.
The standard NCB structure follows the table below:
| Consecutive Claim-Free Years | NCB Discount (in percentage) |
|---|---|
| 1 year | 20% |
| 2 years | 25% |
| 3 years | 35% |
| 4 years | 45% |
| 5 years | 50% |
NCB Calculation Example
Suppose your bike's own-damage bike insurance premium is ₹10,000 and you have completed three consecutive claim-free years. Your NCB = 35%.
NCB discount = ₹10,000 × 35% = ₹3,500
Therefore, your own-damage bike insurance premium after the NCB discount would be:
₹10,000 − ₹3,500 = ₹6,500
The final policy premium can also include third-party bike insurance premiums, GST and other applicable components. Therefore, the NCB discount should not be calculated on the total premium.
How Does NCB Reduce Your Bike Insurance Premium?
NCB reduces the amount you pay towards the eligible own-damage bike insurance premium at renewal. The longer you remain claim-free, the higher your NCB can become. At the maximum level of 50%, you can get a substantial discount on the own-damage portion of your bike insurance premium. However, NCB does not mean that your entire bike insurance premium is reduced by the same percentage. The discount applies only to the eligible own-damage bike insurance component.
For example, suppose your bike insurance renewal premium has an own-damage component of ₹5,000 and you have accumulated an NCB of 50% after five consecutive claim-free years. Your NCB discount would be ₹2,500, reducing the eligible own-damage bike insurance premium to ₹2,500.
| Premium Component | Amount |
|---|---|
| Own-damage bike insurance premium | ₹5,000 |
| NCB discount (50%) | -₹2,500 |
| Own-damage bike insurance premium after NCB | ₹2,500 |
However, if your policy also includes third-party bike insurance coverage and applicable taxes, the NCB discount does not apply to these components. Therefore, your total bike insurance premium will not necessarily be reduced by 50%. The actual savings depend on the amount of the eligible own-damage bike insurance premium.
How to Check NCB for Your Bike Insurance?
Checking your NCB before renewal can help ensure the correct discount has been applied. Use any of the following methods to check NCB for bike insurance:
-
Check your policy document
Your NCB percentage may be mentioned in the bike insurance renewal policy.
-
Check your NCB certificate
Your insurer may issue one showing your accumulated discount.
-
Contact your insurer
You can reach them through their website or customer support.
When Do You Lose NCB in Bike Insurance?
How to Transfer NCB to a New Bike or Insurer?
To transfer NCB, inform your new insurer that you have an existing NCB and provide details of your previous bike insurance policy. The insurer may verify your claim-free record with your previous insurer and ask for an NCB certificate or other supporting documents.
If you are replacing your old bike, the NCB can generally be transferred to the policy for your new bike because the bonus belongs to the policyholder and not the vehicle. When switching insurers, you can also retain your eligible NCB, subject to the applicable terms and verification requirements.
Can NCB Be Transferred to a Second-Hand Bike?
Yes, NCB can generally be transferred to a second-hand bike purchased in the policyholder's name. Since NCB belongs to the policyholder and not the vehicle, the accumulated discount can generally be carried over when replacing your old bike, subject to the insurer's terms and required documentation.
Can NCB Be Transferred to Another Person?
Generally, no. NCB is linked to the policyholder and cannot ordinarily be transferred to another person's name. However, the accumulated NCB can generally be transferred to another bike owned by the same policyholder, subject to the insurer's terms.
What Happens to NCB if the Bike is Stolen or Declared a Total Loss?
A theft or total-loss bike insurance claim may affect your accumulated NCB because it involves a claim under the bike insurance policy. The exact impact depends on the policy terms and the type of claim. If you have an NCB Protection add-on, you may be able to retain the NCB for claims covered under its terms.
Documents Required for NCB Transfer
The exact documents may vary depending on the insurer and the reason for NCB transfer. However, common documents may include:
How to Retain Your NCB in Bike Insurance?
You can protect your NCB by following a few simple practices mentioned below:
NCB vs Bike Insurance Claim
NCB and bike insurance claims are closely connected because a claim-free year helps you earn NCB, while raising a claim may affect the accumulated bonus (NCB).
For example, if you have completed three claim-free years and earned 35% NCB, making a claim may affect that discount at the next bike insurance renewal. This is why it is useful to compare the repair cost with the potential impact on your NCB before making a claim, where appropriate.
FAQs - NCB in Bike Insurance
-
Q. What is NCB in bike insurance?
Ans: NCB is a discount offered to eligible policyholders for maintaining a claim-free record. It applies to the own-damage component of the bike insurance premium. -
Q. Who is Eligible for NCB in Bike Insurance?
Ans: You are generally eligible for NCB if you complete a policy year without making a claim and renew your bike insurance policy as per the applicable terms. The NCB earned is applied to the eligible own-damage bike insurance premium at the time of renewal. The discount increases with each consecutive claim-free year, subject to the insurer's NCB rules. -
Q. How is NCB calculated for bike insurance?
Ans: NCB is calculated based on the number of consecutive claim-free years. It starts at 20% after one claim-free year and can increase up to 50% after five consecutive claim-free years. -
Q. Does NCB Expire if Bike Insurance Is Not Renewed on Time?
Ans: Yes, you may lose your accumulated NCB if you do not renew your bike insurance within the applicable period specified by the insurer. The exact grace period and NCB retention conditions can vary based on the policy terms. Therefore, it is important to renew your bike insurance on time to retain the accumulated NCB. -
Q. How much NCB do I get after one year?
Ans: You can get 20% NCB after one consecutive claim-free year, subject to the policy terms. -
Q. What is an NCB Certificate?
Ans: An NCB certificate is a document issued by the insurer as proof of the NCB earned on your previous bike insurance policy. It generally mentions the applicable NCB percentage and can be used when transferring your NCB to a new bike or switching insurers. You can request the certificate from your previous insurer if required. -
Q. Can NCB Be Transferred to a New Bike?
Ans: Since NCB in bike insurance belongs to the policyholder, not to the two-wheeler, the accumulated bonus can generally be transferred when selling your old bike and buying another, subject to the insurer's rules. You may also retain your NCB when you switch to another insurer at the time of renewal. When transferring NCB, the insurer may ask for documents such as your previous policy details or NCB certificate to verify your claim-free record. -
Q. What is the NCB after three years?
Ans: After three consecutive claim-free years, the NCB is 35%. -
Q. What is the maximum NCB in bike insurance?
Ans: The maximum standard NCB is 50%, which is available after five consecutive claim-free years. -
Q. Does NCB apply to third-party bike insurance?
Ans: No. NCB applies to the eligible own-damage bike insurance component and not to a third-party-only bike insurance policy. -
Q. Can I transfer my NCB to a new bike?
Ans: Yes. NCB generally belongs to the policyholder, so it can usually be transferred to a new bike when you replace your old one, subject to the insurer's terms. -
Q. Can I retain my NCB after making a claim?
Ans: A claim can affect your NCB. However, if you have an NCB Protection add-on, you may be able to retain it for claims covered under the add-on's terms. -
Q. How can I check my NCB?
Ans: You can check your NCB in your bike insurance policy document or NCB certificate. You can also contact your insurer or check the details during policy renewal. -
Q. Is NCB in bike insurance worth it?
Ans: Yes, NCB in bike insurance is worth it if you maintain a claim-free record. It helps in lowering your own-damage bike insurance premium by up to 50% after five consecutive claim-free years. -
Q. Can NCB be used for two bikes at the same time?
Ans: No. The same NCB cannot be used simultaneously on two bike insurance policies.
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