What is NCB in Bike Insurance

1. What is NCB in Bike Insurance? articleted.com/article/632521/210578/What-is-NCB-in-Bike-Insurance- What Is NCB in Bike Insurance and How It Works? When you buy bike insurance for the first time, you need to pay the full premium. But from the second year onwards, if you have no insurance claims within that policy period, you will get a discount on your premium. This discount is called NCB. Now, you might be wondering why you should care about a discount. Think of it this way, when you repeatedly buy from one shop, often the seller shows his appreciation for your patronage with a free gift. NCB is this free gift that your insurance provider gives you at the time of insurance renewal. Buy Bike Insurance: Crucial Information About NCB When you buy bike insurance, it gives you financial security because your insurance provider will pay for the repairs. However, if you do not raise any claims within the policy period, you are liable to get a discount on the total premium required for policy renewal. Think of this discount as a reward for driving your vehicle with care. Your discount, as per the NCB, is calculated on the basis of your own damage premium. Most insurance providers offer up to 50% off, which you can get after five claimless years. This is a great way of saving money, as the NCB percentage in bike insurance keeps increasing cumulatively every claim-free year. But it is also vital to remember that you can get this benefit only when you have bought a comprehensive insurance policy. How Does NCB Actually Work? A policyholder needs to renew the bike insurance once the policy period ends. If there was no insurance claim in the previous year, the insurer would automatically offer a discount in the form of NCB. The full form of NCB is “No Claims Bonus,” which gives the policyholder relief from paying the full premium each time. This feature starts with the first purchase of the insurance policy. Every time you renew the policy without a claim, the NCB discount increases. The insurer continues to apply this discount as long as the policyholder does not raise any insurance claim in a given policy period. This annual discount keeps increasing till it reaches 50% of the OD premium. This is the maximum percentage of discount allowed by the provider. The rate of discount will reset anytime you make an insurance claim during a policy period. 1/2

2. This reset to zero will not take into account the many years when you were claim-free. This is how NCB in bike insurance works. So, it is advisable to avoid making claims for minor damages or losses that you can afford to pay out of pocket. This will help you maintain your no-claim bonus and keep your premium low. Unavoidable Advantages of NCB in Bike Insurance When you buy bike insurance online, you get the benefits of NCB. These benefits are not just for the insured but also help the insurer. The insurance company will be happy to give you a discount every time you renew your policy if you have not made any claims during the previous year. This saves the insurance company from having to pay out any money and keeps money in their pockets for other insurance claims. There are other advantages of NCB in bike insurance. These are as follows: 1. You are offered discounts, so your subsequent premiums after the first year are always going to be lower. You get to enjoy the protection of an active insurance policy and not pay the full premium. 2. You get a just reward for maintaining your vehicle in perfect condition and driving safely. Insurance providers show their appreciation for maintaining traffic rules and avoiding collisions with the NCB. 3. You can easily transfer and switch the NCB in bike insurance. ● You can switch your insurance provider during the renewal period and carry your NCB to the new insurer. The companies deem you as the owner of the NCB and not your two- wheeler. The discount belongs to you as you have earned it. It is not something that the insurance company is doing you a favor by offering. ● As we mentioned, the NCB belongs to you and not the vehicle, so you can transfer your bonus from an old bike to a new one. You would need to submit relevant documents to the insurance provider to validate the transfer. Conclusion To avoid losing your accumulated NCB percentage, it was necessary for you to know what is NCB recovery. We have explained how you can maintain your NCB rate and never have to pay the full premium. 2/2