What is a No-Claim Bonus (NCB) in Bike Insurance?

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.

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What is NCB in bike insurance?

Those who are having two-wheelers should know what is 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.

What are the advantages of No-Claim Bonus (NCB)?

1. Discounts: NCB allows policyholders to get high discounts on premium rates while renewing their policies online.

2. High savings: It enables a person to ensure high savings when he/she wants to renew his/her policy online.

3. Transferrable: NCB is mainly associated with the owner and not the vehicle. Hence, a policyholder can carry forward the same when he/she wants to sell his/her vehicle. It is possible to retain the NCB when porting a plan from one insurer to another insurer.

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.

Also Read: Steps to Buy Cheap Two-Wheeler Insurance Online India

How is No Claim Bonus (NCB) calculated in bike insurance?

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

Knowing more about NCB protection cover 

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.

Things to know more about  NCB in bike Insurance in India 

• Bike owners should make sure that they ride safely and avoid unnecessary claim after buying a two-wheeler insurance
• They can transfer their existing NCB in two-wheeler insurance to another insurance company while selling their bike
• It is wise for policyholders to renew a two-wheeler policy on time to retain the NCB benefit
• A policyholder shouldn’t cancel his/her policy before the tenure because it will impact the NCB
• The no-claim bonus certificate is valid for 3 years and two-wheeler owners should ensure that they use the same within 3 years

How to transfer NCB to new bike insurance?

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.

How to buy the best insurance policy for a bike?

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.

1. Knowing the requirements

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.

2. No-claim bonus 

Policy buyers should evaluate what is no claim bonus in bike insurance from an insurer that will ensure maximum discounts.

3. Comparing quotes online

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.

4. Understanding the terms and conditions 

Policy buyers should know the terms and conditions in detail that will help minimize disputes and other problems.

5. Type

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.

Also read: How to Claim Bike Insurance After Accident If Your Friend was Driving Your Two-Wheeler?

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