No Claim Bonus (NCB) is a reward for filing no claim in the previous year. It can be accumulated over a period of insurance. NCB starts with 20% and goes up to 50%. NCB becomes nil in case of a claim. It is a unique feature wherein you get a reward for every claim free year.
No Claims Bonus (NCB) is also offered up to 50% on two-wheeler insurance online renewal of insurance policy. NCB is offered only when the policy is renewed within 90 days from the expiry of the previous policy. NCB recovery to be done in case of a Name Transfer.
No Claim Bonus (NCB) is basically the insurer's reward to the policy holder for not making a claim in the preceding years. Let us understand NCB with the help of the following example:
Policy Year | NCB % |
---|---|
After 1 claim-free year | 0.2 |
After 2 consecutive claim-free years | 25% |
After 3 consecutive claim-free years | 35% |
After 4 consecutive claim-free years | 45% |
After 5 consecutive claim-free years | 50% |
The key feature of NCB is that it is associated with the policyholder and not the vehicle which means you can go for NCB transfer which states:
Further, NCB can be transferred to the legal heir in case he/ she inherits the bike after the policyholder's death.
It is very important to note that the NCB discount is applicable only to the own damage premium component and not the third party liability premium, which constitutes 15-20% of the total premium.