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Bike Insurance 399 views April 6, 2021
If you don’t claim your bike insurance during the policy period, you will be eligible for a No Claim Bonus (NCB). This NCB will be available to you at the time of policy renewal. As you know the premium amount increases with the age of your bike and also with inflation. So if you are eligible for an NCB at the time of policy renewal, you could get a discount on the premium amount. This encourages you to drive your bike safely and follow the traffic rules, while also making you realize the importance of bike insurance. In case you want to shift your policy from one insurer to another, you can also carry forward the benefits of NCB. Know how your NCB is calculated for Bike Insurance on this page below.
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How is NCB Calculated?
According to the Insurance Regulatory and Development Authority of India (IRDAI) guidelines, the percentage of NCB offered by an insurance company to policyholders for every consecutive claim-free year is capped at 50%. And it is important to know that the NCB is offered on comprehensive bike insurance policies only. Let’s check out different NCB offers of Bike Insurance –
| Policy Name | No Claim Bonus |
|---|---|
| HDFC ERGO Long Term - 2 Wheeler | For a two-year Long Term Policy 25%, if no claim is made during the entire policy tenure 20%, if claims are made during 0-12 months, but no claims are made during 12-24 months 0%, if claims are made during 12-24 months For a three-year Long Term Policy 35%, if no claim is made during the entire policy tenure 25%, if claims are made during 0-12 months, but no claims are made during 12-24 months 20%, if claims are made during 12-24 months, but no claims are made during 24-36 months 0%, if claims are made during 24-36 months |
| TATA AIG Long Term Two Wheeler Package Policy | If no claim is made or pending during the insurance period - 20% If no claim is made or pending during the preceding 2 consecutive years - 25% If no claim is made or pending during the preceding 3 consecutive years - 35% After 4 consecutive claim-free years - 45% Post 5 consecutive claim-free years - 50% |
| ICICI Lombard Two Wheeler Package Insurance | 20%, if no claim is made in a policy year 25%, if no claim is made in the previous 2 policy years 35%, if no claim is made in the previous 3 policy years 45%, if no claim is made in the previous 4 policy years 50%, if no claim is made during the entire policy period |
| Bharti AXA Bike Insurance | The No Claim Bonus starts at the onset of the second year if the policyholder does not file any claims in the previous 365 days. The NCB is as follows: 20% after three claim-free years 50% after five claim-free years |
| Reliance Two Wheeler Own Damage Insurance | 20% after 1 claim-free year 25% after 2 consecutive claim-free years 35% after 3 consecutive claim-free years 45% after 4 consecutive claim-free years 50% after 5 consecutive claim-free years |
| Bajaj Allianz Two Wheeler Insurance | Up to 50% |
| IFFCO Tokio Two Wheeler Insurance | Up to 50% |
| The New India Assurance Company | No- claim discounts are available on renewal and ranges from 20% to 50% based on the type of Bike and the number of claim-free policy years |
| Reliance Long Term Two Wheeler Insurance Policy | From 20% to 50% depending on the number of claim-free policy years |
| SBI Two Wheeler Insurance | The NCB is offered on renewals, and this could be as high as 50%, provided the policy is renewed within 90 days of the expiry date |
How to Claim NCB?
You can claim NCB on your Bike Insurance at the time of renewal. The insurer considers the total claim-free years of your policy and will apply the applicable no claim bonus rate for you to claim your premiums. So, you just need to make sure that your insurer has included the NCB benefits in the bike insurance policy or not.
Benefits of Bike Insurance No Claim Bonus
The following are the benefits of Bike Insurance No Claim Bonus –
Safe Riding: By providing NCB, insurers promote safe riding practices among the policyholders. This way, you’ll do better maintenance of your motorbike and with no yearly claims. As a result, you can earn your NCB during your policy period.
Less Premium Payment: No claim bonus can help you at the time of policy renewal as you get a certain amount of discount for the premium to be paid on renewal when there are no claims made in the previous policy year.
Easily Transferable: As the NCB is attached with your Bike Insurance, if you wish to switch your insurer, you can also transfer the bonus amount along with your insurance. This might have certain terms and conditions depending upon the insurer. And NCB transfer not only applies when you switch insurers, but you can also transfer it if you change your Bike and buy a new one. Some insurers offer NCB transfer in the event of the death of the insured, and one such insurer is Tata AIG General Insurance. In such cases, the NCB is transferred to your legal heir or nominee.
Up to 50% off on Premium: As mentioned above, the IRDAI has set a fixed percentage of NCB, so after the fifth consecutive year of claim-free years, you will only have to pay half of the premium amount at the time of renewal of your policy.
Termination of Bike Insurance NCBs
Your Bike Insurance NCB will be terminated in case of the following –
- If you claim a policy during the tenure, the accumulated NCB benefit will be zero
- If you fail to renew the policy within 90 days of the grace period, all the NCB benefits will be void