With time as our bike get older, it invites more premiums to the insurance plan. In such a case, to give some relief to car owners, insurance companies give NCB on the policy. Now you must be wondering what is NCB in bike insurance?
If this is the case do not worry as today I am going write down what is NCB in bike insurance? How does the insurer get benefit from this? How much bonus one can get? So, let’s now find out what is NCB in bike insurance.
What Is NCB In Bike Insurance?
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‘No Claim Bonus’ (NCB) is called a discount, which the insurance company gives to the customer at the premium amount, which is available during the period of insurance. This bonus also helps in reducing the paid premium the next time, because the bonus amount is reduced from it.
No claim bonus is most commonly used in vehicle insurance. Gradually this bonus becomes so much that sometimes your next premium reduces to 20-50 percent.
If any insurer does not take any claim during any of the years during the insurance period, then such customers get rewards from the insurance companies in the years ahead.
This award is increased by giving them a premium amount or the amount of insurance coverage. No claim bonus is available in both motor insurance and health insurance. But there are some conditions for companies to give no-claim bonuses.
Motor insurance companies offer no claim bonus on renewing the insurance policy roughly within 90 days. Health insurance companies offer no claim bonus for renewing health insurance between 30 days and 60 days.
NOTE:
The condition to get the NCB on bike insurance is that the bike owner can’t take any kind of claim in the past year.
No claim bonus is available in both motor insurance and health insurance.
This discount can be between 20 to 50 percent.
How Does NCB Work?
As you now know what is NCB in bike insurance now it is time to know how it works. If the insurance value of a vehicle is INR 4 lakh at the time of renewal, and its on-premise premium is INR 12,000, then the customer will get a 20% discount.
So, suppose that you have not made any claim during the policy term for five years, you will be given a 50% discount on OD (Own Damage). Now suppose that your vehicle’s premium is something like this
ODP (Own Damage Premium) = INR 5,500/-
Liability Premium = INR 1,500/-
Now the Total Premium = INR 7,000/-
After Giving NCB Discount:
ODP (Own Damage Premium) = INR 5,500/-
Less NCB (50%) = INR 2750/-
Liability Premium = INR 1,500/-
Now the Total Premium = INR 4250 /-
According to the table given below, you can know how NCB grows every year and provide a discount to its customers:
| Type Of Vehicle | Discount % on Premium
|
| No Claim Pending or Made Toward The Year’s End or At The Tenure of The Policy Renewal | 20% |
| No Claim Pending or Made Throughout The Previous 2 Repeated Years of the Insurance | 25% |
| No Claim Pending or Made Throughout The Previous 3 Repeated Years of the Insurance | 35% |
| No Claim Pending or Made Throughout The Previous 4 Repeated Years of the Insurance | 45% |
| No Claim Pending or Made Throughout The Previous 5 Repeated Years of the Insurance
| 50% |
NOTE:
As the bike is old, the rate of no claim bonus will also increase in insurance. However, this benefit is available only when you have not claimed. At the same time, you have to renew it before the expiry of the policy.
When Does The NCB End And When You Get NCB?
If you make a claim, then the next year you will not get NCB.
In case you do not renew the policy within 90 days of expiry, you will not get NCB. (Even if did not take any claim so far)
Significantly, no claim bonus can be transferred from one vehicle to another, provided the policyholder’s name is the same. Apart from this, the insurance company also gets a no claim bonus on change. That means even if you do not take the claim even after changing the company, you get the NCB.
Policyholders should keep in mind that the NCB is available on the dame. This is not the benefit of the third-party policy. In the premium, the third party has a stake of 15 to 20 percent.
NOTE:
The NCB terminates when you make a claim during the term of your policy.
When you do not renew your policy within 90 days from the Expiry Date, then even then the NCB ends.
What Is NCB In Bike Insurance Benefit?
NCB (No Claim Bonus) can be transferred from one vehicle to another unless the policyholder is the same.
You can transfer NCB (No Claim Bonus) from one insurance company to another insurance company.
With the help of NCB i.e. No Claim Bonus you get a 50% discount on OD i.e. Own Damage.
Summary:
Before taking any insurance policy of any company, be sure to know about its terms and conditions.
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