What is NCB and Why is it Important for Your Two-Wheeler Insurance?

20 Feb 2019

NCB, which stands for No Claim Bonus, is the bonus you earn for every claimless year of your insurance. In other words, it is the benefit given by the insurance provider for safe driving to make the vehicle claim free for a year. At the time of renewal of your two-wheeler insurance, the higher the NCB, the lower will be your insurance premium. You can earn up to 50 percent discount in the 5th consecutive claim-free year renewal should you choose to continue till that point in time. This is why it is always advised not to claim insurance for minor damages of your two-wheeler. A little restraint in this matter goes a long way. Because while it is tempting to tap into your insurance whenever damage occurs, it is better to think twice as the NCB will revert to zero for any claim made, and you stand to lose when the time for renewal of your two-wheeler insurance comes.

Usually, NCB is steadily increased over the years as per the fixed Table mentioned in India Motor Tariff, as a reward for you not raising a claim in the previous years.

When is NCB Discontinued/Not Available?

• If do not renew your insurance policy for than 90 days after the expiry.
• If a claim has intimated, NCB will not be offered in the following year.
• NCB is applicable only on the own damage component of the premium and not on the third party insurance premium. This means that if you have only third-party insurance and not own damage insurance component in your policy, you cannot avail NCB.
• In case of mid-term ownership transfer, NCB will not be carried forward in the name of the new two-wheeler owner.

More facts about NCB

• It is transferrable from one insurance provider to another. When you switch two wheeler insurance provider at the time of renewal of Policy, the next insurer will also provide the next slab of NCB subject to terms and conditions.
• It is transferrable from one vehicle to another, under the same policyholder's name. This means that if you sell your old car and buy a new one, you can transfer the NCB accumulated on the old vehicle to the new one, without losing out on your claim-free performance over the previous years. This facility is possible because the NCB is always offered to the policyholder and not the vehicle. (Terms and Conditions apply)

Disclaimer: For more details on risk factors, terms & conditions please read sales brochure carefully before concluding a sale. *The discount amount will vary subject to vehicle specification and place of registration.