NCB in Two Wheeler Insurance
Amrit Pal Singh 02-11-2023 Bike Insurance Bike Insurance, Two Wheeler InsuranceNCB in Two Wheeler Insurance
NCB (No Claim Bonus) is a reward given by insurance companies to policyholders for not making any claims during the policy period. It is a discount on the premium amount for the subsequent policy year. NCB can be availed in two-wheeler insurance as well.
If a policyholder does not make any claims during the policy year, they become eligible for an NCB at the time of renewal. The NCB is usually given as a percentage of the own-damage premium and can range from 20% to 50% depending on the number of claim-free years.
The NCB can be accumulated over the years, thus increasing the discount on the premium. For example, if a policyholder does not make a claim for 3 consecutive years, they can avail a 20% NCB in the first year, 25% in the second year, and 35% in the third year.
If a claim is made during the policy period, the NCB becomes zero and the policyholder loses the discount. However, some insurance companies offer NCB protection add-on, which allows policyholders to retain their NCB even if a claim is made, up to a certain number of times.
The NCB can also be transferred when a policyholder changes their insurance provider, as long as the policy is renewed within 90 days of expiry. The new insurance company will honor the NCB discount.
Overall, NCB is a beneficial feature in two-wheeler insurance as it incentivizes safe driving and reward policyholders for not making claims. It helps in reducing the premium amount and encourages individuals to maintain their vehicles in good condition to minimize the risk of accidents and damages.