No Claims Bonus (NCB)

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:

  1. Suppose you buy your first comprehensive bike insurance, you are initially not eligible for any NCB discount on the premium paid because you have no claim-free record as yet.
  2. When you make first renewal of your bike insurance policy, you can claim a starting NCB of 20%, only if there has been no claim during the past year.
  3. The NCB increases steadily with every claim free year up to a maximum of 50% at the end of 5 claim free years.

Following table shows the NCB rate for different years

Policy YearNCB %
After 1 claim-free year0.2
After 2 consecutive claim-free years25%
After 3 consecutive claim-free years35%
After 4 consecutive claim-free years45%
After 5 consecutive claim-free years50%

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:

  1. You can claim your NCB, if you replace your existing bike with a new bike
  2. You can also retain your NCB, if you switch from one insurer to another insurer at the time of renewal of the policy

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.