What Is NCB In Bike Insurance?
NCB refers to the No Claim Bonus. This reward is available to two-wheeler policyholders who did not file a claim during the preceding coverage year.
Instead of claiming with the insurance company, the policyholder may choose to cover the cost of repairing the bike on their own.
In this case, they become qualified for NCB, a percent discount on the insurance premium amount the policyholder would pay when renewing a two-wheeler insurance policy, but not when purchasing a new two-wheeler insurance policy; the NCB would be zero at that time.
This discount applies to the "Own Damage Premium" portion of the insurance policy. Typically, the discount runs between 20 and 50 percent.
Why is NCB important?
NCB plays a crucial function in decreasing the amount of two-wheeler insurance premiums (OD Premium). It is a terrific strategy to lower costs while renewing two-wheeler insurance gradually. The proportion of this incentive grows each year the policyholder goes without filing a claim.
NCB is nil if the policyholder files a claim.
NCB can be transferred to a new vehicle if a vehicle of the same class is replaced.
The NCB is valid for 90 days from the policy's expiration date. To take advantage of NCB, everyone should renew their two-wheeler insurance coverage on time.
NCB can be used within three years (when the existing vehicle is sold and a new vehicle is purchased).
NCB recovery is possible in the event of a name transfer on the vehicle's RC.
Two-wheeler insurance is an essential purchase for any bike owner. Purchasing 2-wheeler insurance online is easy and uncomplicated.
Incredible Benefits of No-Claim Bonus
You know that NCB is a reward from your insurer for not filing a claim on your two-wheeler insurance. It has the following benefits:
Acts as a Reward:
The insurance company presents you with a memento of appreciation. Each year's desire to acquire NCB improves your riding abilities and makes you a competent driver.
Simple to Transfer:
NCB always belongs to the driver, not the vehicle. So, even if you transfer to a different insurer, the coverage stays with your bike.
Consequently, if you've earned an NCB from your current insurance, 45 percent, it is readily transferrable to a new insurer at renewal. However, compliance with the terms and conditions is required.
Reduces the Premium:
If you want to sell your old bike and get a new one, the NCB you've accumulated will help you obtain a discounted bike insurance policy.
How does the No Claim Bonus work?
In the case of a claim-free year, the No-Claim Bonus is activated. This discount applies exclusively to Own Damage coverage and is not intended for third-party liability insurance.
The rate of NCB grows by 5% each year for each claim-free year that passes. Let's illustrate this using an example:
Imagine you have bike insurance with an IDV of Rs. 1 lakh and an annual cost of Rs. If you have not filed a claim in the first year, you will get a 20 percent NCB on your yearly premium at renewal.
Considering the 20 percent NCB bonus on premium, your successive year premium is Rs. 12,000, not Rs.
How is the No-Claim Bonus in Bike Insurance Calculated?
If you do not file a claim, you may receive a maximum reduction of 50 percent off your premium. The No-Claim Bonus decreases bike insurance prices by allowing the insured to utilize these advantages.
Your NCB is reset to ZERO if you file a single claim, regardless of how long you've gone without making an insurance claim. Let's assume:
A and B both purchase the Bajaj Avenger Street 160 model. They had each purchased the same complete protection plan for their favorite item.
B claims if A does not file a claim during the first policy year. In this instance, A is entitled to a 20% NCB benefit, but B is not. If they both pay the Rs. 12,000 fee separately.
Conclusion
If you wish to reduce your premiums, you must drive cautiously and refrain from filing claims on your two-wheeler insurance coverage. Thus, you may maximize your no-claims bonus and profit from a cheap yet comprehensive bike insurance policy.
There are lot of insurance companies in the market offering various insurance policies at different rates. you must compare before buying an insurance policy. search on finndit.com and get the details of insurance policy providers near you.
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