NCB in Bike Insurance

• Now, insurers say that if you drive safely and do not raise a claim for a year, on your policy renewal, you will receive a discount on the premium. This discount is called a No Claim Bonus.
• Formally, an NCB is defined as a discount on premium awarded to the policyholder for not making a claim during the policy year. To deter rogue claims and instill some type of discipline, the concept of No Claim Bonus was introduced (though we love claims and helping out people!).
• The good news is, if you continue with good behaviour and if your bike never faces any issues, damage, or accidents, then you can accumulate your No Claim Bonuses over the years. We will see a little later how well this works for your pocket.

• Yet another good news is, the accumulated NCB bonus is like the famous pug, it goes with you wherever you go. That is, it is transferable from your old vehicle to new vehicle, if you decide to buy a new bike, as long as you remain the policy holder. Your NCB is for YOU as the policy holder and not for your bike.

• While everything in motor insurance increases in price with time, you can still reduce your bike insurance premium as the policy years increase! This special benefit is offered by NCB in bike insurance, which works almost like a rewards system. 
• You start by getting a 20% discount if you haven’t made any claim in your first policy year. Consequently, your discount keeps accumulating each year by 5% from your second claim-free year. The maximum NCB in bike insurance goes up to 50% over five consecutive claim-free years. 
• So, in simple words, NCB works by rewarding you with a discount on your policy premium – the better driver you are, the more you save!

• Don't be greedy because after five years, the discount will not increase, even if you don’t raise a claim in a year. Now let us calculate what is current NCB in bike insurance with a simple example.
• You bought a suave high-speed bike in 2010. There could not be another ideal biker a.k.a policy holder in the world like you. You paid your premium on time. You did not raise a claim in the first year or the second year…or the fifth year.
• Now, you thought, you have had enough of this bike. You sell this bike and instead bring home another slick model in 2015. You have, along with your new bike, got your bike insurance as well. 
• Suppose the own damage premium for the new vehicle is ₹3000. But you have accumulated NCB for 5 years. So, you will get up to 50% discount on the premium for your new vehicle. You will only have to pay ₹1500 for your own damage premium!

• NCB Protection Add-on can be bought for an additional premium over the base bike insurance policy. This means that NCB cannot be purchased independently and can only be bought along with a comprehensive or standalone own-damage two-wheeler insurance policy.
• Also, the premium of NCB varies from insurer to insurer, which is roughly between 5% to 10% above the standard bike insurance policy; you should check the same with your insurer.

• An NCB certificate is provided at the time of buying a two-wheeler insurance policy; it is used at the time of filing a claim or asking for NCB discount. 
• To get a No Claim Bonus (NCB) certificate, the policyholder must contact the insurance provider and request one. For that he needs to provide your policy number and personal and vehicle details. After verifying the details, the insurer will issue the NCB certificate.

• Yes, there is a way, depending on whether your desired insurance company provides the benefit or not. If your insurer allows it, you can go for an NCB Protect add-on as part of your comprehensive policy. With this feature, you can make a specific number of insurance claims (mostly just one) in a year without losing your no claim bonus. 
• Some insurers may also put a condition on the number of years you should have gone without making a claim on your policy before the protection feature kicks in.

The following are some important things to know about No Claim Bonus in bike insurance in India:

• The NCB is available only with the Comprehensive Two-Wheeler Insurance Policy and not with the Third-Party Liability Plan. 

• NCB will terminate if you file a claim even a single time.

• NCB can be easily transferred to the new two-wheeler; just ensure you have the NCB certificate.