What Is The Ncb In Bike Insurance Benefits

Can you remember your childhood days? For example, when you were 5 or 6, your father would tell you that if you behaved well all day, studied hard, and did not cause a nuisance, you would receive a reward sweet. A No Claim Bonus is similar to a chocolate. It is an incentive for not making any claims during your insurance period. Wondering what is ncb in bike insurance? Below let us discuss NCB in detail.

What is NCB in bike insurance?

So what is ncb in bike insurance? The NCB in bike insurance denotes a percentage of discount on your insurance rate. You get it when you renew your policy. NCB applies to the damage premium component of the policy you have. The discount will vary from 20 to 50%.  

How does NCB in bike insurance work?

Each time an insurance policy expires, it needs to be renewed. If there is no prior claim in an insurance policy then the insurers will reward you with NCB. They offer policyholders a reduction or assistance on their premium payments for the next policy. This process begins with the renewal of an insurance policy. If no claims were filed in the initial policy before it expired, an NCB in bike insurance is awarded in the next year at renewal.

As long as the insured does not file an insurance claim during the renewal year, the insurer will offer NCB. The discount percentage rises every year. The amount may be as high as 50%. Your no-claim bonus resets to zero if you filed an insurance claim in the previous year. This applies even if the policyholder hasn't claimed in years past. This is how the No Claim Bonus works for bike insurance.

Benefits of NCB

NCB in bike insurance benefits both the insurance company and the person who is insured. The insurer benefits by offering a discount on the premium instead of paying large insurance claims, encouraging insurers to go claim-free and claim a bonus on the premium. The policyholder benefits by receiving discounts on future premium payments to stay insured rather than claiming once and continuing. An NCB in bike insurance provides the following benefits to the insured or policyholder:

• Active insurance policies result in cheaper premiums in subsequent years. 
• It serves as a reward for careful driving and vehicle maintenance, reducing insurance claims from accidents or collisions. 
• Transferring and switching NCB in bike insurance is simple. On renewing your bike insurance policy, you may transfer your No Claim Bonus from one insurer to another. The NCB is your reward and not your insurance company's.  You can also transfer your NCB from an old bike to a new one by providing the required documents to the insurer.

Points to Remember

To achieve a no-claim bonus for bike insurance, keep the following points in mind.

• The NCB is a reward from your workplace for good driving behaviors.
• To avail of the NCB you need to renew your policy within 90 days of its expiration. 
• The no-claim benefit grows with each following year, with a 20% reduction in the first year, 25% in the second, and 35% in the third.
• NCB cannot be transferred to another driver. It is granted to the driver's good driving ability, not the car. The NCB discount might be applied to the initial premium of the new bike. However, NCB cannot be transferred between two-wheelers and four-wheelers.
• You can transfer your bike's no-claim benefit even if you change bikes and insurance companies. To accomplish this, your insurer should issue you an NCB certificate. You can also order it online. 

When is the NCB in a bike insurance policy canceled? 

Aside from the fact that a vehicle's No Claim Bonus on renewal coverage is invalid if there has been a previous insurance claim, the bonus may also become not applicable in the following situations:

• The NCB will be canceled if bike insurance coverage is not renewed within 90 days of expiration. 
• If a policyholder cancels before the policy expires, the No Claim Bonus for that year is canceled.
• Failure to submit a retention letter to transfer a No Claim Bonus discount from an old to a new bike insurance policy. 

Wrapping it Up

By now you have understood what is ncb in bike insurance? If you have no insurance claims, NCB in bike insurance helps in save money on your premiums. Furthermore, if the two-wheeler is driven cautiously and properly, it will not be damaged. Some insurance firms have also developed an add-on policy called NCB Protect. This coverage helps you keep NCB in bike insurance even after a claim. There might be several terms and conditions applied to this insurance. You can be granted NCB in bike insurance despite having filed an insurance claim under the NCB Protect Policy if you do not exceed the allowed number of claims per year.