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Benefits of NCB in Long-Term Two Wheeler Insurance

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Published on March 1, 2022. EST READ TIME: 3 minutes

With the rising cost of two-wheeler insurance, bike owners, who are conscious about their budget and savings, prefer going for long-term bike insurance policies to reap benefits in the future. This can suit them in a way that if they don’t make any claims during the period of the policy, the bike owner will be rewarded with discounts on renewal and his NCB (No Claim Bonus) will continue. Here’s how you can receive the advantages of NCB in long-term Bike Insurance Plans.

NCB Benefits

An NCB is a discount offered to the insured bike's owner in exchange for good driving and not claiming insurance during a policy year. The no-claim incentive is available when renewing the insurance for the following years. This award comes in the shape of a percentage reduction on the renewal premium sum.

The discount rate will vary depending on the consecutive policy year; the least rate is 20%, the highest rate is 50%, and the discount can be rolled forward for a period up to five consecutive years. Customers can use the No Claim Bonus for every renewal if they wish to.

NCB for policies with a single year of coverage

Even a single filed claim on a single-year bike insurance policy would lead to the NCB rate being reduced to 0%.

Non-Cash Bonus for Multi-Year Plans

In the event of multi-year plans, the NCB can be obtained even if a claim is filed.

Insurers enable customers to submit claims during the policy period, subject to the following conditions:

1. Consumers receive a 30-35% NCB if no claims are lodged throughout the policy period.

2. Consumers are eligible for a 25% NCB if they make a single claim in the initial policy year and zero claims in the following two years.

3. Consumers are eligible for a 20% NCB if they make a single claim in the second year but no more claims after that.

4. Consumers are not eligible to NCB if a claim is filed in the third year or if more than a single claim is filed throughout the entire policy tenure.

Some insurance providers offer what is called as incremental NCB, as presented in the following chart:

According to the table above, submitting no claims throughout the insurance term leads to a 40% NCB, filing one claim leads to a 30% NCB, and so on. Different insurance companies have various procedures and regulations regarding NCB. However, regardless of the plans, it is apparent that the proportion of discount granted for is bigger for long-term bike insurance plans than for standard single-year policies.

Conclusion

To sum it up, there are many advantageous rewards you can get when you purchase long-term bike insurance cover. Of course, always check with your insurance agent first to find out the details of your policy. In today’s fast-moving world, where everything— including technology —is constantly changing at the blink of an eye, it makes sense to have some insurance back-ups. Long-term bike insurance lets you renew your policy every 2 or 3 years, getting you set for uninterrupted insurance coverage over potentially prolonged periods. With no NCB benefits to drive up your premium price on renewal day, it’s safe to say that multi-year long-term bike insurance is one development worth considering at renewal time. Even if you are planning on buying only a third-party liability bike insurance plan, we still recommend you explore the multiple-year policies. It’s simply that good!

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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