Have you been looking for online two wheeler insurance? If yes, the chances are high that you would have come across the term NCB and probably spent some time scratching your head to figure out what it means. NCB stands for No Claims Bonus and is a discount that a bike insurance owner can avail while renewing bike insurance.
The NCB is not valid for anyone and everyone. In fact, you can think of it as a ‘thank you program’ being run by the insurers. If you bought an online two wheeler insurance and have not claimed the same during its term, NCB is yours for the taking. You can use NCB to bring down the premium costs during your policy renewal.
How does it work?
As already mentioned, it works only when you have not claimed your policy in the previous term. NCB is cumulative in nature, which means that you can save a considerable amount of money on your premiums.
The following table should help you assess how much discount you are looking at.
|First year of no claims on the policy||20%|
|Two consecutive years of no claims on the policy||25%|
|Three consecutive years of no claims on the policy||35%|
|Four consecutive years of no claims on the policy||45%|
|Five consecutive years of no claims on the policy||50%|
There are two primary things to keep in mind when it comes to NCB. Firstly, the discount is applicable only to the own damage component of the policy. If you take a closer look at the breakdown of your bike insurance policy, you will come across different aspects such as personal accident cover, own damage, third-party liability etc. Discounts on the own damage will help you slash your premium prices.
Secondly, an NCB is only applicable to a comprehensive plan and not a third-party liability plan only. Since these are the only two types of insurance available, you can make a choice accordingly.
Can It Be Terminated?
Yes, NCB can be terminated under the two following conditions.
– If a policyholder makes a claim during the term of a policy.
– If the policyholder fails to renew the policy within 90 days of the expiry of the existing or old policy.
While fundamentally there are only two types of insurance available for you, there is another category that might interest you. Multi-year two-wheeler policy. The policy is exactly what the name suggests, a bike insurance policy from a long-term perspective. You can either opt for a two-year plan or a three-year plan.
Apart from the most obvious benefit of saving money in terms of premium prices, there are certain NCB related benefits as well. Here are the top advantages.
– You can continue to receive NCB on your policy even if you proceed with a claim. Of course, you do not get to keep the entire NCB that you would have otherwise been able to get. But you still get to keep a substantial discount.
– If a policyholder does not claim the policy even once during the term, they can avail discounts between 30-35% on the own damage component.
– If a policyholder makes a claim during the first year and goes claimless for the next two years, they can expect an NCB of 25%.
– Assuming that you opt for a three-year policy and have claimed just once during the second year, the discount would stand at 20%.
– However, if you make any claims in the third year of the policy or more than one claim, you would not be entitled to any more discounts.
– Certain insurance companies are known to offer incremental NCB. According to this, if you do not claim your policy even once during the three years, you can walk away with as much as 40% in NCB discounts.
– The NCB for a multi-year policy is definitely higher than that of a single year policy. If you would have opted for a single year policy, the discount at the end of the third year would be 35% as to 40% of a multi-year policy.
Note that different insurers might have different terms and conditions related to NCB. You can look at the different types of insurance and pick a policy that best suits your needs. However, a comprehensive policy will offer much better value for money. Another great advantage of buying a policy online is that you can compare bike insurance. When you compare bike insurance, you are at an advantage of getting a policy that has a good balance between features and premium.