How is NCB calculated in bike insurance?

Ah, bike insurance. That crucial yet slightly annoying task every biker needs to tick off their list. But if you’re a responsible rider who’s all about safe rides and smooth journeys, there’s a little perk that comes your way: the no claim bonus (NCB). Think of it as a reward for being a careful roadster—a pat on the back from your insurance company for not claiming any damages.

But how exactly is NCB calculated? And why should you care? Buckle up (or should we say, helmet on)—we’re about to dive into the nitty-gritty of NCB calculation in the most engaging way possible.

What is NCB, and why should you care?

NCB (No Claim Bonus) is a discount on your insurance premium for not making any claims during the policy term. It rewards safe behaviour and increases with each claim-free year.

What is the NCB calculation formula?

Here’s how it works in the bike insurance world:

First year without claims

Congratulations! You’ve managed to dodge potholes, traffic chaos, and the occasional overzealous auto-rickshaw. Your reward? A 20% discount on your own-damage premium when you renew your policy.

Second year of claim-free riding

Two years in a row? You’re on fire. Your NCB now climbs to 25%.

Third year and beyond

The percentages just keep getting better:

3rd claim-free year: 35% NCB

4th claim-free year: 45% NCB

5th claim-free year: A whopping 50% NCB

Yes, you read that right. By being a responsible rider for five years, you can save half your premium amount. That’s more money for those weekend rides or that fancy new helmet you’ve been eyeing.

Things to keep in mind about NCB

While NCB sounds like a dream, there are a few things to keep in mind:

Claims reset your NCB

Even a single claim in a policy year can bring your NCB back to square one. So, it’s worth considering whether a minor repair is worth filing a claim. Sometimes, paying out of pocket for small fixes can save you big in the long run.

Transferable, but conditional

Selling your bike? No worries—your NCB travels with you, not the vehicle. However, you need to transfer it to your new policy within 90 days of your old policy’s expiry.

Third-party premiums are NCB-free

NCB applies only to the own-damage premium. Third-party premiums are regulated and don’t get the NCB magic.

NCB add-on covers

Worried that one accident might wipe out all your hard-earned NCB? Enter the NCB protector add-on. It’s like insurance for your insurance. With this, even if you make a claim, your NCB remains intact (subject to certain terms and conditions, of course). It’s a small additional cost that can save you big in the long run.

Conclusion

NCB is your reward for being a safe and savvy rider, calculated as a discount on your own-damage premium, and it grows with every claim-free year. The key to maximising your NCB? Stay cautious, think twice before claiming, and consider an NCB protector for extra peace of mind.

Now, the next time someone brings up bike insurance, you’ll be the go-to expert. Ride safe, enjoy the perks, and keep that NCB rolling in. After all, why just ride when you can ride smart?