What does NCB mean in Bike insurance?
Definition of the No Claim Bonus (NCB):
A non-claim bonus (NCB) is a discount that an insurer gives an insured for not claiming during the term of the contract.
The NCB can accumulate over the years and the reimbursement varies between 20% and 50% of its own premium.
The customer is not offered any No claim bonus, even if they change their vehicle. The NCB can be transferred to the newly purchased vehicle.
How Does A (NCB)No Claim Bonus Work In Bike Insurance?
If the insured has not filed a claim in the last year, the bonus of the claim cannot be increased. The Own damage discount rate (OD) increases by 5% each year in line with the increase in premium rates.
For example, if a vehicle with an declared insurance value (IDV) of 5 lakhs and a premium of 15,000 rupees per year did not claim in the last year, the insured is entitled to a bonus without renewal.
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Therefore, a 25% discount on an annual premium of Rs 15,000 will be granted if a claim was not made last year.
This means that the owner of the vehicle must pay 11 250 rupees, taking into account the 25% discount to which he is entitled.
Why is the NCB important In Bike Insurance?
The NCB plays an important role in reducing the insurance premium for two-wheelers (premium OD). This is an excellent way to progressively reduce the premium since the percentage of that premium increases with the successive years of losses that the insured has not covered.
Also Read: What is IDV In Bike Insurance ?
The insured must consider the following points in relation to the NCB:
- The NCB In bike insurance is canceled if the insured makes a claim.
- The NCB can be transferred to the new vehicle when the vehicle of the same class is replaced.
- The validity of the NCB is 90 days from the expiration date of the policy. Therefore, everyone must renew the two-wheeled insurance in time to receive NCB benefits.
- The NCB can be used within 3 years (if the existing vehicle is sold and a new vehicle is purchased).
- The restoration by the NCB can be done by transmitting the name on the vehicle’s remote control.
Simple definition of NCB (No claim bonus ) is discount on your bike insurance premium.
What does protected no claims bonus mean?
Ans: If you have an accident and assume all or part of the responsibility, you are likely to lose all or part of your premium. If it is not your fault and another party assumes responsibility, your No claim bonus discount should be maintained.
One way to protect your No claim bonus is to pay an additional amount for your bike insurance to protect it. This means that you’re No claim bonus will not be withheld even if you have to file a claim. With two insurances within a year with a protected bond, some insurers will not be able to do so, while others could reduce it significantly.
Keep in mind that a bonus insured for loss will not completely protect you from a higher premium when you renew your bike insurance. When calculating premiums, insurers verify the number of years without claims and the number of claims declared.
Article written by
Swapnil R. Chavan (Digital marketing & SEO Executive )