< Back

Motor

ncb-important-for-tw-ins-banner-big

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!

Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.

RELATED ARTICLES

Car Insurance Benefits

Motor

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

Add-on covers for Car Insurance

Motor

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.

Car insurance

Motor

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-calculatedcde

Motor

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-th

Motor

Rules to follow for safe driving

Know About The Important Road Safety Rules To Follow

 

 

significance-of-a-motor-vehicle-insurance-policy

Motor

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

Motor

Maintenance tips for car engine

Follow these maintenance tips and buy a car insurance with engine protection cover to keep engine secure.

Monsoon Tips Car

Motor

Monsoon Tips for Car

Simple tips to help you stay safe and keep your car moving ahead during monsoon.

What is Zero Depreciation Cover

Motor

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

Motor

Questions Regarding Motor Insurance Policies

Essential questions answered about motor insurance policies in India.