Everything You Need To Know About No Claim Bonus

libertyvideocon By libertyvideocon, 23rd Feb 2017 | Follow this author | RSS Feed | Short URL http://nut.bz/p3bzx0xj/
Posted in Wikinut>Business>Accounting & Finance

No claim bonus (NCB) is a part of a motor insurance policy. NCB is a discount that a policyholder is entitled to get, for not making any claims during the policy term. NCB can be accumulated over the years. To make the most out of the No Claim Bonus benefits, you need to know about it in detail.

Everything You Need To Know About No Claim Bonus

If you have not made any insurance claims on your motor or bike insurance policy in the entire policy term, then you are eligible for availing the No-Claim Bonus (NCB). No claim bonus is a discount that is offered on the motor or bike insurance premium, at the time of policy renewal. If you have not made any insurance claims throughout the policy term, then you are entitled to avail a bonus on the policy renewal, from your insurer.

How much NCB discount can you avail on your bike insurance?
The NCB discount can range from 20% to 50% and is given on the own damage premium. The NCB discount starts at 20 per cent in the second year, and goes up to 50 per cent in the sixth year. NCB can only be availed in case of a comprehensive motor insurance policy, i.e. a policy that provides coverage against loss or damage to the vehicle and also against third-party liability. If you have purchased a third-party bike insurance policy, it means that NCB is not applicable.

You don’t lose on NCB even if you change your vehicle
No claim bonus is actually attached to the policyholder and not his vehicle. Therefore, if you change your vehicle, it doesn’t mean that you lose on the NCB that you have accumulated over the years. In fact, you can get the NCB transferred to your new vehicle.

What happens to No Claim bonus if you switch your insurance provider?
In case you wish to change your insurance provider, you can get your NCB transferred to the new company. In order to make sure that the policyholder is eligible for the NCB, the new insurance provider may ask for a declaration, stating that the no claim bonus is genuine and no claim was made by the policyholder from the older insurance service provider.

When can NCB be terminated?
No Claim Bonus can be denied by an insurance company only under the below mentioned cases-
1.If you have made a claim during a policy year, you won’t be eligible to receive NCB in the next year.
2.If your bike insurance policy has expired, and you do not renew it within 90 days from the date of expiry of your existing policy.

Can No Claim Bonus be protected?
Yes, you can protect your NCB by purchasing an NCB protect add-on cover. When you purchase this cover, your NCB is not affected, even in case of a claim and you can still enjoy the discounts upon policy renewal. But there are certain restrictions under this cover that you must understand before you buy it.

How to make the most out of your No Claim Bonus?
No Claim Bonus is an important part of your bike insurance policy as you can earn great discounts on premiums upon policy renewal, by accruing the NCB. Take NCB as an inspiration that will make you drive safely on road, and thus save your hard-earned money. Don’t make small claims as it can dent your NCB, and leave you at loss. Therefore, it is recommended that you evaluate the benefits and then decide on making a claim.

Read the policy document before you buy motor or bike insurance policy. Being aware and informed allows you to make the most out of your insurance policy.

Tags

Bike Insurance, Two Wheeler Insurance

Meet the author

author avatar libertyvideocon
Sorry, this author hasn't written a bio yet.

Share this page

moderator Peter B. Giblett moderated this page.
If you have any complaints about this content, please let us know

Comments

Add a comment
Username
Can't login?
Password