A Step-by-Step Guide to Understanding No Claim Bonus in Bike Insurance

Posted on: May 30, 2024 | 3 mins | Written by: HDFC ERGO Team

A Step-by-Step Guide to Understanding No Claim Bonus in Bike Insurance

Have you ever received a pleasant reward for your hard work? Similarly, there is a bonus scheme in the field of bike insurance policies. That gift is the Non-Claim Bonus. The NCB serves as an acknowledgement gesture for watchful, sensible bikers who maintain road security rules.

In this guide, we learn everything about NCB in bike insurance. Continue scrolling!!

Insurers offer this prize to customers with bike insurance. According to insurers, if someone rides the bike carefully and avoids making an insurance claim for a whole year, they will save money on the premium while renewing the coverage. Such relief on the costs is known as a No-Claim Bonus.

The best part of NCB in bike insurance is that one can earn this discount over time if they maintain such excellent behaviour. Plus, their two-wheeler never experiences any losses or mishaps.

Inclusions of NCB

• A no-claim bonus is available for those with complete insurance coverage.

• NCB preserves only damage-related content.

• This add-on is only eligible if the policy is renewed through the same insurance company.

Exclusions of NCB

• A no-claim bonus is not applicable when issues that are not eligible are brought forward.

• NCB is not qualified for complete loss or theft. Complaints regarding any fraudulent-related issue won't be covered.

• This add-on will not cover when there is a misrepresentation of information in an attempt to get a damage claim.

How does No-Claim Bonus Work?

One can qualify for NCB if he/she has comprehensive bike insurance and keeps an impeccable record over the policy's life period. In basic terms, you receive NCB if you don't report any mishaps or losses during the insurance term.

The sum of NCB rises gradually with every claim-free year. This implies that your NCB% increases with the time you spend without filing a claim.

Eventually, the acquired NCB is converted into a premium cut on your coverage at policy expiry. For example, if you have accrued a 50% NCB, you will receive a 50% premium decrease while upgrading your bike insurance coverage.

How is NCB in Bike Insurance Beneficial?

Here are the following advantages that NCB in Bike Insurance provides:

• If the insured does not file a single claim throughout the policy's term period, it's possible to lower the cost of premiums. For insurance for bikes, that decrease can happen from an initial rate of 20 per cent to a limit of 50 per cent.

• It is possible to transfer an NCB while buying a new motorbike or switching insurers. This transferability gives the NCB more versatility and importance.

• Customers with NCB can conveniently renew their coverage without going through the tedious procedure of completing paperwork and submitting additional proof.

• Policyholders can forgo filing an insurance claim in case of a minor mishap or loss up to the NCB value. By doing this, individuals maintain their claim-free history and can continue receiving NCB payments in the preceding years.

• It promotes prudent biking behaviour among bikers.

What is the NCB Slab Rate?

Insurance firms apply a progressive scale known as the NCB slab rate. This calculates the percentage of discounts customers are entitled to depending on their claim-free performance. Here is a common NCB in bike insurance slab rate:

Claim free years	No-Claim Bonus (in Percentages)
Following the First Year	20
Following the Second Year	25
Following the Third Year	35
Following the Fourth Year	45
Following the Fifth Year	50

When Can No-Claim Bonus Fail?

Recognising the situations that can cause NCB to expire on bike insurance is critical. Those are:

• Conflict in Policy:

If the policy has expired or you neglect to renew your bike insurance during the grace period, you lose the No-claim bonus.

• Casting a claim:

If a claim is made within the insurance period, the NCB will be reversed to zero. Thus, before appealing for minor losses that fall within the NCB cap, it is crucial to evaluate the injury and consider the NCB implications.

Can You Acquire Non-Claim Bonus on Third Party Bike Insurance?

The No Claim Bonus is exclusively dependent on own-damage bike coverage. Therefore, if you are considering getting such premium discounts on your third party bike insurance policies, you won't, no matter how long you have gone without a claim.

Is it possible to Reclaim NCB in Bike Insurance?

Yes, if you purchase No Claim Bonus (NCB) as a supplement coverage. This question is entirely dependent on your insurance company. Also, read the terms and conditions carefully before making any decision.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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