When it comes to saving money on your vehicle insurance premium, No Claim Bonus (NCB) can be a real game-changer. Whether you own a car, bike, or commercial vehicle, understanding NCB can help you make smarter insurance decisions and reduce costs over time. Here’s everything you need to know.
What is No Claim Bonus (NCB)?
No Claim Bonus is a reward given by insurers to policyholders for not making any claims during the previous policy term. It acts as a discount on the renewal premium, encouraging safe and responsible driving.
For example, if you don’t file any claims in the first year of your motor insurance policy, your insurer may offer a 20% discount on your premium for the next year. The longer you go without making a claim, the higher your NCB gets—up to a maximum of 50%.
How Does NCB Work?
NCB is cumulative and increases with each consecutive claim-free year. Here’s how the bonus typically builds up:
| Claim-Free Years | NCB Discount |
| 1st Year | 20% |
| 2nd Year | 25% |
| 3rd Year | 35% |
| 4th Year | 45% |
| 5th Year & Above | 50% |
This discount applies only to the own damage portion of your premium, not third-party insurance which is mandated by law.
What is NCB in Bike Insurance?
When it comes to two-wheelers, No Claim Bonus works the same way as it does for cars. So, what is NCB in Bike Insurance? It’s a reward system where bike owners get a discount on their renewal premium for each year they don’t raise a claim. If you maintain your bike well and avoid accidents or damages, you can enjoy up to 50% savings on your bike insurance premium over the years.
Benefits of No Claim Bonus
- Lower Premiums: The most obvious benefit is reduced renewal costs.
- Encourages Safe Driving: Drivers are incentivized to be cautious and maintain their vehicles.
- Transferable: NCB stays with the policyholder, not the vehicle. This means you can transfer your bonus even when switching insurance providers or buying a new vehicle.
- Long-Term Savings: A high NCB percentage over several years can lead to substantial savings.
Things to Keep in Mind
- Claiming Even Once Can Reset NCB: A single claim can bring your accumulated NCB back to zero.
- NCB Is Not Shared Across Vehicles: You can’t use the NCB from your car insurance on your bike insurance or vice versa.
- NCB Protection Add-On: Some insurers offer an NCB protection cover, which allows you to make one or two claims without losing your NCB benefits.
How to Check and Maintain Your NCB
To check your NCB:
- Look at your previous year’s policy document.
- Contact your insurer or log into their customer portal.
- If switching insurers, ask for an NCB certificate from your old provider.
To maintain your NCB:
- Avoid small claims—pay minor repair costs out of pocket.
- Drive responsibly and follow traffic rules.
- Renew your policy on time to prevent NCB lapse.
Conclusion
No Claim Bonus is one of the smartest ways to reduce your vehicle insurance premium. It not only rewards careful driving but also promotes a culture of safety and responsibility. Whether you own a bike or a car, keeping your NCB intact can lead to significant financial benefits in the long run. So, next time you’re tempted to make a small claim—think again. Your NCB might be worth more than you think!
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