4 min read
Updated on Nov 01, 2022
John has a bike and its insurance policy needs renewal as it is going to expire. He hasn’t applied for any claim after buying the plan from an insurer. As a result, he got high discounts on his premium prices during the renewal process. He didn’t know how the insurer reduced the premium rates and the fact that the insurance company offered discounts due to the no-claim bonus feature was not very clear to him.
Those who are having two-wheelers should know what is No-Claim Bonus (NCB) in Bike Insurance from various sources. No-claim bonus (NCB) is a reward offered by an insurance company when a person doesn’t claim any amounts within a policy year. It allows two-wheeler owners to ensure maximum discounts while renewing a plan that will help save more money. In this article we have tried to include all information pertaining to NCB to help you know how to check NCB in bike insurance.
Also, it leads to cautious riding on the roads as people want to avoid any damage to the vehicle which might need an insurance claim.
An insurance company will calculate the NCB from the second year onwards. It can last up to five consecutive years with an increased percentage. However, NCB is available for those who have a comprehensive policy and have their own damage component of the premium. It is not applicable in the third-party cover. and a two-wheeler owner should know
Sometimes, two-wheeler owners will make one or two claims during the policy period. This will affect the NCB and they should know how to protect the same. They should consider buying an add-on cover called “no-claim bonus protector”. It allows a policyholder to keep his/her no-claim bonus intact even after raising a claim. A policyholder can purchase this add-on cover from an insurer that will help accomplish goals during the policy renewal process. One must note that the cost may vary from one insurance company to another company in a location.
Bike owners can transfer their No Claim Bonus (NCB) in bike insurance to a new insurance policy during the renewal process. It depends on the buying mode. For example, when a policyholder buys an insurance plan offline or through an agent, then he/she can process the same by submitting his/her buyer-seller agreement. On the other hand, they should know what forms to use from an insurer to meet exact needs. It is necessary to transfer the NCB with a requisition letter along with the required documents.
The existing insurer will issue a certificate and two-wheeler owners can submit the same to a new insurance company as soon as possible. On the other hand, there is no need to do anything when buying a policy online. Policyholders should mention their policy number, no-claim bonus, and the name of the insurer. The new insurance company will take care of everything allowing policyholders to experience peace of mind.
Buying new bike insurance involves several things and one should keep them in mind that will help get protection from potential hazards.
Here are some tips to follow while buying two-wheeler insurance.
People who buy bike insurance first time should know their requirements in detail that will make the right decision. They should understand the coverage terms properly which gives ways to gain more advantages.
Policy buyers should evaluate what is no claim bonus in bike insurance from an insurer that will ensure maximum discounts.
Two-wheeler owners should compare the quotes of insurance companies online before purchasing a plan. This, in turn, gives ways to select a policy that caters to the budget and requirements of a policyholder.
Policy buyers should know the terms and conditions in detail that will help minimize disputes and other problems.
Insurance companies offer comprehensive plans and third-party liability plans for two-wheelers in the markets and they can choose the right one according to needs.
The bottom line
NCB full form in bike insurance and what it actually means is an important info as it allows two-wheeler owners to get high discounts when they want to renew their insurance policies online. Having the right type of two-wheeler insurance provides ways to manage financial losses caused by natural calamities and man-made mistakes. PayBima’s team assists in evaluating the features before buying a two-wheeler insurance policy from an insurance provider that will help meet your needs and ensure a stress-free bike ownership.
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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