What is NCB in Bike Insurance | No Claim Bonus & Benefits in 2021?

Do you have any memories of your childhood? Like when you were 5 or 6 years old and your father promised you a treat candy if you behaved well all day, studied hard, and did not cause any trouble? A No Claim Bonus (NCB) is similar to that, a treat for being a responsible rider.

You might be wondering what a bonus has to do with successful bike riding. If you have bike insurance but have driven carefully and properly maintain your bike, you will not need to file an insurance claim because there is no damage to the claim!

What is NCB in Bike Insurance?

Insurers now promise that if you drive responsibly and do not file a claim for a year, you will earn a discount on your insurance renewal. A No Claim Bonus is a name for this type of reduction.

In formal terms, an NCB is a premium discount given to a policyholder for not filing a claim during the policy year. The notion of a No Claim Bonus was created to prevent rogue claims and teach some discipline.

The good news is that if you keep up your good behavior and, fingers crossed, your bike never has any problems, damages, or accidents, you can build up your No Claim Bonuses over time. We’ll see how well this works for your wallet a bit later.

Can you transfer the NCB when you buy a new Bike?

Another excellent thing is that the collected NCB bonus follows you about wherever you go, like the famous pug. That example, if you decide to buy a new bike, it can be transferred from your old vehicle to your new vehicle as long as you are the insurance holder. Your NCB is for you, not your bike, as the policyholder.

How NCB is Calculated in Bike Insurance?

How to calculate NCB in bike insurance? Also after the first renewal of your comprehensive two-wheeler insurance coverage does your no-claim bonus kick in. (Please note that NCB only applies to the Own Damage component of your premium, which is the premium computed using the IDV (insured stated value) minus the cost of the bike’s wear and tear.) Third-party cover premiums are not eligible for the incentive).

After the first year of no claims, you will receive a 20% discount on your premium. Each year, the discount increases by 5-10% when the policy is renewed. In other words, the discount increases each year that you do not file a claim, almost as though the incentive for policyholders’ good conduct continues becoming bigger.

For example, if you receive a 20% NCB after the first policy year and do not file a claim the next year, your premium discount will increase to 25-30%, then 30-35 percent the following year, and so on. You’ll be able to get up to

NCB in bike insurance

Don’t be greedy; even if you don’t file a claim for a year, the discount will not grow after five years. Let’s look at a basic example to show how this computation works.

In 2010, you purchased a stylish high-speed motorcycle. There could not possibly be another perfect motorcyclist, a.k.a. insurance holder, on the planet like you. Your premium was paid on time. You didn’t file a claim the first year, the second year, the third year, or the fifth year.

You’d had enough of this bike, you reasoned. In 2015, you sell this bike and replace it with another sleek model. You’ve also purchased bike insurance to go with your new bike. Assume the new vehicle’s own damage premium is Rs.3000. However, you have accumulated NCB over the past five years. As a result, you may save up to 50% on your new vehicle’s insurance cost. For your personal damage premium, you will just have to pay Rs.1500!

Benefits of NCB in Two-Wheeler Insurance:

You can keep your No Claim Bonus (NCB) on your 2-wheeler insurance and a few more perks if you don’t make any claims throughout the policy period:

Nature is rewarding.

It’s a reward provided to you by your insurance provider for driving safely and not filing a claim throughout the duration of your coverage. It’s a discount that encourages you to drive safely while also ensuring that you follow the laws of the road.


The NCB is yours and belongs to you because you drove carefully and did not file a claim. As a result, it is possible to transfer it to a different insurance provider. When you renew your insurance, you may take advantage of the NCB.

Assists In Lowering Premiums

If you do not file a claim during the insurance period, the NCB is applied to the renewal premium as a reduction. You can profit from the financial advantages it provides.

Why is NCB Important for Two-Wheeler Insurance?

Two-wheeler insurance is necessary from a legal standpoint, as it provides third-party coverage and protects your vehicle from damage caused by you (OD). One of the most crucial aspects to consider when purchasing bike insurance is the NCB. It’s critical, especially if you’re pursuing a damages claim. What role does NCB play in two-wheeler insurance? The following are a few points that will help you comprehend the significance of the NCB:

When you renew your membership, you get a discount.

NCB is a reward or discount offered by Comprehensive Two-Wheeler Insurance for riding safely and without filing a claim during the policy period. The insurance provider will offer you a discount in the form of NCB when you renew your policy, which will help you save money on your premium.

Get up to a 50% discount on premiums.

The insurance provider will give you a 50% reduction on your rate if you renew your two-wheeler for the fifth time without making a claim. The NCB % for each consecutive claim-free year has been set by the IRDAI. This is a five-year maximum. The discount begins at 20% for the first year and increases to 50% after five consecutive claim-free years.

How Do I Transfer My NCB To A New Bike Insurance Policy?

You can only transfer the NCB part to the new insurance carrier to take benefit of the discount you have earned by not filing a claim. This is the case because the NCB does not belong to the bike, but rather to the owner or policyholder. The procedure for transferring a no-claim bonus is as follows:

Transfer NCB from your old bike insurance to your new one.
After you sell your old vehicle and transfer the insurance policy to the new owner, you can keep the No Claim Bonus you earned from the Comprehensive bike insurance coverage. Your insurance provider will issue a no-claims bonus certificate, which you can transfer along with the appropriate paperwork and use to get a discount on a new insurance policy for your new bike.

Documents Required for NCB Transfer

the following are the documents you’ll need to transfer your NCB from your previous bike insurance to your new bike insurance:

  • The insurance firm issued an NCB Transfer Certificate.
  • Agreement between the buyer and the seller (Forms 29 and 30).
  • To get the NCB Transfer Certificate, the new buyer must present a delivery note.

When will NCB get canceled, terminated, or no longer available?

For the following circumstances, the No Claim Bonus (NCB) may be canceled or terminated:

  • If you need to file a claim during the insurance period.
  • The NCB is forfeited if you do not renew your insurance within 90 days of its expiration date.
  • The Third-Party Liability plan does not include NCB. The Comprehensive Bike Insurance Policy is the only way to get this.

What is NCB in Bike insurance in India? Things to Know .

Here are a few things to know and understand regarding bike insurance’s No Claim Bonus (NCB):

1) NCB will be nullified if any claim is made.
The NCB is given by the insurance provider in the form of a discount for riding your bike safely and without filing a claim during the policy period. As a result, make sensible claims to guarantee that you keep the NCB. This is especially helpful if you have collected a 50% discount by not filing claims for five years in a row.

2) Make sure your bike insurance policy is up to date.
Make sure you renew your two-wheeler insurance before it expires. If you do not renew your insurance within 90 days of its expiration date, your NCB will be canceled. As a result, a lapse in insurance renewal will affect the NCB.

3) Do not terminate the policy before the term expires.
Do not terminate the bike insurance coverage before the tenure expires for any reason, since the NCB for that year will also be canceled, and you may lose your NCB.

4) Don’t Make Insignificant Claims
Even a single claim will exclude you from receiving the NCB discount when renewing your insurance for the following year. Make sure you don’t file minor claims and only file large claims to safeguard the NCB.

5) Only with Comprehensive Insurance is this option available.
Only the Comprehensive Two-Wheeler Insurance Policy and not the Third-Party Liability Plan are eligible for the NCB. To get the NCB discount, make sure you pick the first option.

6) Ensure that the NCB is transferred.
You can transfer the NCB from your old insurance policy to the new bike insurance when you sell the bike. By issuing the NCB Transfer Certificate, the insurance company permits you to transfer the NCB to another insurance provider.

7) Within three years, use the NCB Transfer Certificate
The certificate of no claims incentive is good for three years. To get a reduction on your rate, make sure you transfer the advantage to your new bike insurance within three years.

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How to Calculate NCB for Two Wheeler Insurance in India

The phenomenon of NCB in Bike Insurance is quite popular in the insurance sector. It helps in reducing the premium burden of a policyholder by generating discounts. The basic concept is to offer discounts in form of bonuses to those policyholders who have not made any claim during the policy period. While the NCB cover features multiple benefits, it is applicable only for the own damage insurance covers. Third-party insurance policies are exclusions. To understand how the NCB can benefit you, you must know how to calculate the discount you can avail of with this cover. 
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