How to Get a No Claim Bonus (NCB) on Bike Insurance?

What is No Claim Bonus?

A no claim bonus is simply a bonus for raising no claims in a policy year. Various bike insurance companies offer a no-claim bonus to their customers for driving safely and sustaining no major damages. The bonus starts with a 20% discount on bike insurance premiums, and with each consecutive no-claim year, it goes to a maximum of a 50% premium discount.

At the time of policy renewal, you can make use of the NCB on bike insurance to get premium discounts. You must also know that NCB on bike insurance is transferable to other bikes and even insurance companies. So, even if you decide to change your insurance company or buy a new bike at the time of policy renewal, you do not lose the reward. However, raising a claim in a policy year can bring the NCB reward to zero.

Tip: Various motor insurance companies offer NCB Protect add-on cover. It keeps your NCB intact even after a few claims.

No Claim Bonus: Know How it Works

Understanding the working of the no-claim bonus is quite simple. With each no-claim policy year, NCB is awarded to you. As stated above, it can go as high as a 50% premium discount. The table given below gives you a quick insight into how NCB is calculated for each consecutive claim-free year:

Consecutive Claim-Free Years NCB Rewards

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%

So, for the first claim-free year, you receive a 20% premium discount. Gradually, in the second consecutive claim-free year, the NCB discount reached 25%, followed by 35% in the 4th consecutive claim-free year. Finally, the NCB benefit reaches its maximum in the 5th consecutive claim-free year. So, in the 5th year, you actually only pay half the premium of your bike!

Note: After the 5th consecutive claim-free year, the no-claim bonus on bike insurance reaches the maximum. There is no further increase after this. However, you can keep availing the 50% discount till the time you make a claim.

How to retain your NCB even after filing a claim?

This defies the entire concept of NCB, right? How can you retain your No-Claim Bonus after you file a claim? Well, this can be done with the NCB Protector add-on.

The NCB (No Claim Bonus) Protector add-on in bike insurance lets you retain your NCB even after making a claim during the policy year. Usually, a single claim can bring your no-claims bonus (NCB) back to zero, which increases your next premium.

However, with this add-on, your NCB stays intact (subject to limits and certain conditions, such as renewing your bike with the same insurer), helping you save on renewals while still getting coverage for damages. It's useful if you’ve built up a good NCB and want to protect your no-claims bonus (NCB) and discount. So, remember to add this rider, especially for high-end bikes, where the premium is high.

How NCB on Bike Insurance Benefits You?

A no claim bonus not only reduces your bike insurance premium but also benefits you in multiple ways. Here are some of the obvious benefits of a no claim bonus on bike insurance:

1. Discount on Premium
   One of the major concerns in a bike insurance policy is its premium. So, what better than finding a way to reduce the premium effectively? With a no claim bonus, you can reduce the premium load by half.
2. NCB is Transferable
   Another reason that makes NCB attractive is that it's not limited to an insurance company or a bike. Rather, the reward is for the policyholder. So, transferring NCB to another bike or insurance company is equally easy.
   Note: Policyholders cannot transfer NCB to another person when they sell the bike or transfer the insurance policy. To retain it, you need to collect the NCB confirmation letter from the insurer to be able to use it further.
3. Encourages Safe Driving Habits
   At the very basic, a no claim bonus is also a subtle way of encouraging bike owners to drive safely. Your insurer rewards you for simply keeping yourself and your bike safe on the roads. So, above all, it encourages protection and safety!

Some Common FAQs that You May Have in Mind

1. Can I transfer NCB to another bike?
   Yes, you can transfer NCB to a new bike insurance policy. A no claim bonus is a reward for the policyholder so that it can be transferred from your old bike to the new one.
2. What is the maximum NCB benefit that I can claim?
   By raising no claim in a policy year, you can accumulate up to a 50% policy premium discount. It starts with the first year of a claim bonus that offers a 20% premium discount and goes to a maximum of 50%.
3. Is NCB applicable to third-party insurance?
   No. No claim bonus on bike insurance is limited to policies with own damage cover, like standalone own damage or comprehensive bike insurance.

In Conclusion

Driving safely is key to not just personal safety but also financial well-being. No claim bonuses can substantially lower your bike insurance premium. It is also quite easy to transfer your NCB on bike insurance to another bike while keeping the benefits intact. Make sure to get your policy renewed before expiry to make use of striking benefits and rewards.

At Jio Insurance Broking, we make it simpler and easier for you to understand the key to a successful insurance policy. Connect with us today to get your ideal motor insurance policy!