If you’re a two-wheeler owner, you know the importance of having 2 wheeler insurance to protect yourself and others on the road. But did you know that being a safe and responsible rider can actually save you money on your insurance premiums? Enter the No Claim Bonus (NCB)—a reward system that makes your safe driving habits pay off.

In this blog, we’ll dive into what NCB is, how it works, and why it’s one of the best perks of 2 wheeler insurance. By the end, you’ll understand why it’s worth keeping a clean record on the road!

What is No Claim Bonus (NCB)?

The No Claim Bonus is a discount provided by insurance companies on the premium for 2 Wheeler Insurance when no claims are made during the policy period. Essentially, going claim-free allows the insurer to reward the policyholder with a reduced premium at renewal.

It’s like a loyalty reward program for good riders who don’t burden their insurers with repair or accident claims. The best part? This discount grows with every consecutive claim-free year, making it an incentive to ride safely and responsibly.

How Does NCB Work?

NCB operates on a tiered structure for 2 Wheeler Insurance. The longer the policyholder goes without making a claim, the greater the discount they earn on their premium. Here’s a typical breakdown of the NCB structure:

• First claim-free year: 20% discount

• Second consecutive claim-free year: 25% discount

• Third consecutive claim-free year: 35% discount

• Fourth consecutive claim-free year: 45% discount

• Fifth consecutive claim-free year: 50% discount (maximum cap)

For example, if your premium is ₹2,000 and you’ve gone five years without making a claim, you could save ₹1,000 with a 50% NCB. Not bad for being a safe rider, right?

The Benefits of No Claim Bonus in 2 Wheeler Insurance

1. Significant Savings on Premiums

The primary advantage of NCB in 2 Wheeler Insurance is the substantial savings on premiums. With discounts reaching up to 50%, policyholders can significantly lower the cost of renewing their insurance.

2. Encourages Safe Riding

NCB in 2 Wheeler Insurance encourages responsible behavior on the road. By riding cautiously and avoiding accidents, policyholders not only ensure safety for themselves and others but also earn financial benefits through discounted premiums.

3. Transferable Benefit

A unique feature of NCB in 2 Wheeler Insurance is that it’s tied to the policyholder, not the vehicle. This allows policyholders to transfer their NCB to a new insurance policy when purchasing a new two-wheeler, ensuring their safe riding history continues to provide financial benefits.

4. Applicable Across Insurers

In 2 Wheeler Insurance, your NCB remains intact even if you switch insurance providers. By obtaining a proof-of-NCB certificate from your previous insurer, you can seamlessly transfer and continue enjoying the same benefits with your new provider.

5. Promotes Financial Discipline

In 2 Wheeler Insurance, the possibility of losing NCB motivates many riders to handle minor repairs out of pocket. This approach not only avoids the hassle of claim processes but also helps maintain lower premiums over time.

Example: How NCB Saves Money

Let’s take Raj, a responsible rider who hasn’t made a single claim in five years. His annual premium for his 2 wheeler insurance is ₹2,500. Here’s how his NCB discount helps him save:

• Year 1: ₹2,500 – 20% = ₹2,000

• Year 2: ₹2,500 – 25% = ₹1,875

• Year 3: ₹2,500 – 35% = ₹1,625

• Year 4: ₹2,500 – 45% = ₹1,375

• Year 5: ₹2,500 – 50% = ₹1,250

By the fifth year, Raj saves ₹1,250 annually on his premium. Over five years, his total savings add up to ₹5,250—all thanks to his claim-free record.

How to Retain Your NCB

1. Avoid Small Claims

For 2 Wheeler Insurance, if repair costs are minimal, paying out of pocket instead of filing a claim can help retain your NCB, allowing you to continue enjoying premium discounts.

2. Renew Your Policy on Time

In 2 Wheeler Insurance, NCB benefits depend on maintaining continuous coverage. Failing to renew your policy on time can result in the loss of your accumulated NCB, impacting future discounts.

3. Transfer NCB When Switching Insurers

When switching insurance providers for 2 Wheeler Insurance, request an NCB certificate from your current insurer. Submit it to your new insurer to transfer your NCB benefits seamlessly.

Conclusion

The No Claim Bonus is a fantastic feature of 2 wheeler insurance that rewards safe and responsible riders. It not only helps you save money but also encourages better riding habits.

Whether you’re renewing your policy or buying a new bike, NCB ensures that your good behavior on the road is recognized and rewarded.

If you’re looking to compare insurance policies and maximize your NCB benefits, Digibima, an insurance aggregator in India, can help you find the best deals tailored to your needs. So, buckle up (or helmet on) and ride safe—your wallet will thank you!

FAQ Section

Q1: What is No Claim Bonus (NCB)?

A1: NCB is a discount offered on your insurance premium for not making any claims during the policy period.

Q2: Can I transfer my NCB to a new bike?

A2: Yes, NCB is linked to the policyholder, not the vehicle. Its benefit can be transferred to the insurance policy of newer bikes.

Q3: What happens to my NCB if I miss renewing my policy on time?

A3: If your policy lapses, you may lose your accumulated NCB. Renewing your policy on time ensures you retain your benefits.

Q4: Is NCB transferable across insurers?

A4: Yes, you can transfer your NCB when switching insurance providers by obtaining an NCB certificate from your current insurer.

Q5: Should I avoid making claims to retain my NCB?

A5: If the repair cost is minimal, it’s better to pay out of pocket to retain your NCB and enjoy larger savings on premiums in the future.