Understanding the No Claim Bonus NCB in two-wheeler insurance

No Claim Bonus (NCB) is a discount that your insurer gives you on the own-damage premium of your bike insurance when you complete a policy year without filing any claims. The discount starts at 20% after the first claim-free year and can go up to 50% after five consecutive years. NCB applies only to comprehensive two-wheeler insurance and not to standalone third-party policies. It is linked to the policyholder rather than the vehicle, which means you can carry it forward when you buy a new bike or switch to a different insurer.

What is a No Claim Bonus in bike insurance?

No Claim Bonus is a reward for maintaining a claim-free record during your policy period. Each year that you do not file a claim, the insurer applies a progressively higher discount on your own-damage premium at the time of renewal. The discount is cumulative and grows with every consecutive claim-free year, up to a maximum of 50%.

NCB only applies to the own-damage portion of your comprehensive two-wheeler insurance premium. It does not apply to the third-party liability premium, which is set by the IRDAI at fixed rates. If you file a claim during a policy year, you typically lose the accumulated NCB at the next renewal, unless you have purchased an NCB protection add-on.

Features of No Claim Bonus in two-wheeler insurance

NCB has several defining characteristics that every bike owner should understand.

• Reward for claim-free riding: NCB is earned when you complete a full policy year without making any claims against the insurer, encouraging safe and responsible riding habits.

• Progressive discount structure: The discount increases with every consecutive claim-free year, following a fixed slab structure from 20% to 50%.

• Applies only to own-damage premium: The NCB discount is calculated on the own-damage component of your comprehensive policy. It does not affect the third-party premium, which is regulated by IRDAI.

• Transferable between bikes and insurers: NCB is linked to the policyholder, not the vehicle. When you sell your bike and buy a new one, or when you switch to a different insurance company, you can carry your accumulated NCB forward with proper documentation.

• Valid for 90 days after policy expiry: You have a 90-day grace window after your policy expires to renew and retain the NCB. If you miss this window, the NCB lapses and resets to zero.

• Reset on claim: Filing even a single claim during the policy year typically resets the accumulated NCB to zero at the next renewal.

• NCB protection add-on available:  Some insurers offer an add-on that allows you to make one or two claims during the year without losing your NCB, providing an extra layer of protection for your discount.

• Builds long-term savings: Maintaining a claim-free record for five years can reduce your own-damage premium by half, resulting in meaningful savings, especially for bikes with higher insured values.

How Is NCB Calculated?

No Claim Bonus (NCB) in two-wheeler insurance is calculated as a percentage discount on the Own Damage (OD) premium of your policy. It is rewarded for every claim-free year and increases progressively over time.

NCB Slab Structure

NCB follows a fixed slab structure that increases the discount with each consecutive claim-free year.

For example, if your bike’s own-damage premium is ₹2,000 per year, the NCB discount works as follows.

• After 1 claim-free year. 20% NCB saves you ₹400, so you pay ₹1,600.

• After 3 claim-free years. 35% NCB saves you ₹700, so you pay ₹1,300.

• After 5 claim-free years. 50% NCB saves you ₹1,000, so you pay only ₹1,000.

The savings become more substantial for bikes with higher own-damage premiums, such as premium or high-capacity motorcycles.

Eligibility and applicability of NCB in two-wheeler insurance

Not all bike insurance policies qualify for NCB. There are specific conditions that determine eligibility.

• Only comprehensive policies qualify: NCB is available only on comprehensive two-wheeler insurance. If you have a standalone third-party policy, you are not eligible for any NCB discount.

• NCB applies only to own-damage premium: The third-party premium is regulated by IRDAI at fixed rates and is not affected by your claim history.

• Renew within 90 days of expiry: To retain your accumulated NCB, you must renew your policy within 90 days of expiry. If you miss this window, the NCB lapses and resets to zero.

• NCB is earned only if no claims are filed: Even a single claim during the policy year usually results in the loss of accumulated NCB at the next renewal, unless you have an NCB protection add-on.

How to check No Claim Bonus in bike insurance?

You can verify your current NCB percentage through several channels.

• Insurer’s website or mobile app: Most insurers provide an online portal where you can enter your policy details and check your NCB status instantly.

• Policy renewal documents: Your renewal premium quote usually reflects the NCB discount applied. Compare the quoted own-damage premium with the base rate to see the discount.

• Customer support: Call your insurer’s helpline and request your NCB details using your policy number.

• Insurance agent or broker: If you purchased your policy through an agent, they can confirm your NCB status from the insurer’s records.

What is No Claim Bonus protection add-on?

The NCB protection add-on is an optional cover you can purchase alongside your comprehensive bike insurance. It allows you to make a limited number of claims, usually one or two, during the policy period without losing your accumulated NCB.

This add-on is particularly useful for regular riders who want to protect their premium discount in case of minor accidents or unforeseen damage. The cost of the add-on is a small percentage of the base premium, but the savings from preserving a 45% or 50% NCB over a claim year can be significant.

When is No Claim Bonus cancelled or lost?

Your NCB can be cancelled or reset to zero in the following situations.

• You file a claim during the policy year: Any claim, regardless of the amount, typically results in loss of NCB at the next renewal. The only exception is if you have an active NCB protection add-on.

• You fail to renew within 90 days of expiry: If more than 90 days pass after your policy expires, the NCB lapses permanently and cannot be recovered.

• You switch from comprehensive to third-party only: Since NCB applies only to comprehensive policies, downgrading to a third-party policy means the NCB can no longer be applied.

• You do not transfer NCB when changing bikes or insurers: If you buy a new bike or switch insurers without submitting the NCB transfer certificate, the new policy starts without any NCB.

• Policy violations: If the insurer rejects a claim due to policy violations such as driving under the influence, the NCB may also be cancelled.

How to transfer No Claim Bonus when buying a new bike or changing insurer?

Since NCB is linked to the policyholder and not the vehicle, you can carry your accumulated NCB forward when you buy a new two-wheeler or switch to a different insurance company.

1. Request an NCB transfer certificate from your current insurer. This document confirms your claim-free record and the NCB percentage earned.

2. Submit the certificate along with your previous policy documents to the new insurer at the time of purchasing the new policy.

3. The new insurer verifies the NCB and applies the applicable discount to your new policy’s own-damage premium.

Documents typically required for transfer

• Previous comprehensive two-wheeler insurance policy document showing the coverage and NCB percentage.

• NCB certificate or declaration from the previous insurer confirming the claim-free years.

• Vehicle registration details of the new bike.

• Valid ID proof of the policyholder.

Complete this transfer at the time of buying the new policy to ensure no gap in the NCB application.

How much does No Claim Bonus protection add-on for bike insurance cost in India?

The cost of a No Claim Bonus (NCB) Protection add-on in bike insurance is relatively affordable and depends on multiple factors, such as the insurer, bike model, location, and base premium.

Typically, the NCB protection add-on costs around 5% to 10% of your own damage premium. While this may slightly increase your overall premium, it offers significant value by protecting your accumulated No Claim Bonus even after making a claim.

Factors affecting the cost of NCB protection add-on

• Type and model of the bike: Higher-value bikes may attract a higher add-on cost

• Location: Premiums can vary based on city and risk factors

• Insurer’s pricing: Different insurers offer varied pricing for add-ons

• Existing NCB percentage: A higher accumulated NCB may influence pricing

• Policy type: Comprehensive policies typically allow this add-on 

Impact of No Claim Bonus on bike insurance premium

NCB has a direct and measurable impact on the premium you pay at each renewal. As the NCB percentage increases with every claim-free year, the own-damage premium decreases proportionally. Over five claim-free years, you can reduce the own-damage component of your premium by half, which translates to meaningful savings, especially for bikes with higher insured values. Maintaining a clean claim record and protecting the NCB through the add-on, where possible, are the most effective ways to keep your two-wheeler insurance costs low over time.

Tips to preserve your No Claim Bonus in bike insurance

No Claim Bonus is a valuable reward for safe riding, and with a few smart habits, you can keep it intact and enjoy lower premiums year after year.

• Ride carefully and follow traffic rules. The simplest way to preserve NCB is to avoid accidents and the resulting claims. Defensive riding and adherence to speed limits reduce the risk of damage.

• Absorb minor repair costs out of pocket. If the repair cost after a minor incident is small, consider paying for it yourself rather than filing a claim. Preserving a 50% NCB discount often saves more over time than the amount you would recover from a minor claim.

• Renew your policy on time. Set a reminder for your renewal date and complete the process within the 90-day grace period. A lapsed policy means a lost NCB that took years to build.

• Consider the NCB protection add-on. If you ride frequently or in high-traffic areas, the add-on gives you the flexibility to make one or two claims without losing your discount.

• Transfer NCB when switching bikes or insurers. Always request the NCB certificate from your current insurer before moving to a new policy. Without it, your new policy starts at zero NCB.

How to transfer NCB to new bike insurance?

If you aree buying a new bike, you don’t lose your No Claim Bonus (NCB). The benefit is linked to you (the policyholder), not the vehicle. This means you can easily transfer your NCB from your old bike insurance policy to a new one and continue enjoying discounted premiums.

1. Inform your insurer:  Notify your existing insurance provider that you plan to sell your old bike and transfer the NCB to a new policy.

2. Obtain the NCB certificate: Request an NCB certificate from your insurer after selling your old bike or not renewing its policy. This document acts as proof of your claim-free record.

3. Purchase a new bike insurance policy: While buying insurance for your new bike, mention your existing NCB and submit the NCB certificate to the new insurer.

4. Verification by the insurer: The insurer will verify your NCB details before applying the applicable discount on your premium.

5. Apply NCB discount: Once verified, your NCB will be transferred, and you’ll receive a reduced premium on your new bike insurance policy.

Conclusion

No Claim Bonus is one of the most effective ways to reduce your two-wheeler insurance premium over time. The discount starts at 20% after the first claim-free year and can reach 50% after five consecutive years, effectively halving the own-damage premium. NCB is linked to the policyholder, not the bike, which means you can transfer it when buying a new vehicle or switching insurers, as long as you complete the transfer within the allowed timeframe. The NCB protection add-on offers additional security by preserving the discount even after one or two claims. Understanding how NCB is calculated, when it can be lost, and how the transfer process works helps you make better decisions at renewal and keep your premium costs under control.

FAQs

Q1: What is no claim bonus in bike insurance?

It is a discount on your own-damage premium earned for completing a policy year without filing any claims against the policy.

Q2: Is NCB applicable to third-party bike insurance?

No, NCB applies only to comprehensive two-wheeler insurance policies. Standalone third-party policies do not offer this discount.

Q3: How much discount can I get with NCB?

The maximum NCB discount is 50% on the own-damage premium, earned after five consecutive claim-free years of comprehensive coverage.

Q4: Can I transfer my NCB to a new bike or insurer?

Yes, NCB is linked to the policyholder and can be transferred to a new bike or insurer with proper documentation.

Q5: What happens if I make a claim during the policy year?

You typically lose your accumulated NCB at the next renewal, unless you have purchased an active NCB protection add-on.

Q6: How do I check my NCB status?

Check through your insurer’s website, mobile app, customer helpline, or by reviewing the NCB percentage shown on your renewal documents.

Q7: How long do I have to renew my policy to retain NCB?

You must renew within 90 days of policy expiry. Missing this window results in the NCB lapsing and resetting to zero.