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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.


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