Updates over WhatsApp
Two-wheeler insurance is indispensable due to its provision for third-party coverage as well as protection against own damage or losses to the vehicle.
One can neither overlook the importance of the insurance itself nor the other intricacies of it such as the NCB. Most people might have come across the term but never completely understood it. Therefore, here’s a quick guide to navigate the No Claim Bonus and its importance:
No Claim Bonus or NCB is the bonus that you earn for not claiming the insurance in the Policy year. This simply means that you get rewarded by your insurance provider for taking good care of your vehicle and driving safely. Furthermore, NCB is gradually increased over the period of claimless years, as per the guidelines mentioned in the India Motor Tariff.
In order to reap the maximum benefits of this bonus, one must avoid the temptation of claiming their insurance upon the occurrence of minor damages and repairs as the NCB reverts back to zero for any kind of claim made. Additionally, whenever your two-wheeler insurance is renewed, more accumulated NCB is equivalent to a discounted premium plan. One can earn up to 20 percent discount for the first year which goes up to 50 percent discount given the vehicle has gone claim-free for five consecutive years. This is calculated as per the limit set by IRDAI and is offered by the insurance company for each claim-free year.
No Claim Bonus can even be transferred even if the vehicle owner changes their insurance provider or the vehicle. Hence, if you sell your old car and purchase a new one, your NCB will keep accumulating on top of the previous one. These perks are provided because NCB is always offered to the policyholder and not their vehicle.
While buying a plan, one must pay special attention to NCB in two-wheeler insurance and keep the following things in mind:
• One must look for the own damage insurance component in their policy as only then can one avail NCB facility. No Claim Bonus is not offered on third-party insurance premiums.
• When the insurance policy is not renewed for over 90 days after its expiry, NCB is discontinued.
• No Claim Bonus in two-wheeler insurance is not offered for the following year after a claim has been intimidated.
• Remember to transfer NCB when buying a new vehicle.
• Ensure that you claim NCB during the time of two-wheeler insurance renewal.
• It is even transferable from one insurance provider to another. The next insurer is obligated to provide the next slab of NCB in accordance with the terms and conditions.
• NCB two-wheeler policyholders are offered an NCB protection cover which gives them the leverage of shielding their NCB even if they have raised a claim during the policy period. However, the premium is slightly higher in this case.
• The documents required for transferring NCB from old insurance to new two-wheeler insurance include NCB Transfer Certificate from the insurance company, Buyer/Seller Agreement, and a delivery note provided by the new buyer to get the NCB Transfer Certificate.
In conclusion, these points highlight the importance and benefits of NCB when it comes to your two-wheeler insurance. Kotak General Insurance helps provides various two-wheeler insurance policies and services that will help you protect your finances as well as your vehicle in case of loss or damages. So make sure to check out the website for all your insurance needs!
I/we give my/our consent to receive information in respect of policy servicing, claim servicing, updates on my policy, updates on new and existing product, marketing or servicing my relationship with Kotak Mahindra General Insurance Company Limited, its group companies/associates or agents through Telephone/Mobile/SMS/e-Mail, etc. Further, i/we understand that my/our consent to receive calls/communications shall be valid and shall prevail over my/our current or any subsequent registration of my/our number for the NDNC and shall continue to be treated as my/our consent/acceptance. (If you do not wish to accord your consent, please submit a Do Not Call (DNC) form alongwith this form.
I/we have understood the form, including the clause on consent to call, and i/we have agreed the same after understanding and accepting the terms contained therein.
Benefits of car insurance
A car insurance can help you offset substantial financial loss that you may incur because of damage caused to your car
Must have Add On Covers for Car Insurance
A basic comprehensive car insurance covers damage to car, 3rd party liability and theft & loss of vehicle.
Right time to buy vehicle insurance
Buying a vehicle insurance is an important decision and you need to ensure that you make a timely purchase of vehicle insurance
Know How Car Insurance Premium Is Calculated
Car insurance premium calculation is based on various important factors. Learn about these factors.
Rules to follow for safe driving
Know About The Important Road Safety Rules To Follow
Significance of a motor vehicle insurance policy
Apart from financial security, know in what all ways a motor insurance policy is significant.
Maintenance tips for car engine
Follow these maintenance tips and buy a car insurance with engine protection cover to keep engine secure.
Monsoon Tips for Car
Simple tips to help you stay safe and keep your car moving ahead during monsoon.
What is Zero Depreciation Cover
Read on to understand what is zero depreciation car insurance cover and how it works.
Questions Regarding Motor Insurance Policies
Essential questions answered about motor insurance policies in India.
To optimise our site experience on your handheld device, please hold your phone vertically.