Unquestionably, bikes are a highly convenient way of transportation. 16.2 million 2-Wheelers were sold in India in 2022, an increase of 13.2% from 2021, thanks to a blazing 20% increase in December 2021. The two-wheeler industry acceleration due to electrification is also present in India because the government has significantly enhanced incentives, and the demand for EV scooters is a new market driver.
However, when you purchase a motorcycle, you must also buy a two-wheeler insurance policy to protect it from unforeseen circumstances. Every motorcycle owner in India is required to have an insurance policy under the Motor Vehicles Act. Accident probabilities are increased by rash driving and poor road conditions. Accidents can result in injury, vehicle damage, and occasionally even fatalities. It is mindful to acquire bike insurance not only because it gives financial support to repair damages to your bike but also because it provides extra benefits that some of you may not even be aware of. A significant and advantageous feature is the No-Claim Bonus (NCB). *
Let us delve deeper into the same:
- Utilization of the No-Claim Bonus
When you do not file a single claim during the policy year, the insurance company will reduce your rate. This is known as No-Claim Bonus (NCB) in technical terms. No-Claim Bonus will be available upon your bike insurance renewal. At times, you can expect the NCB concession to reach up to fifty per cent of the premium amount. *
You can receive a concession on the NCB when you renew your motorcycle insurance. It’s also simple to access your NCB online. Check if your two-wheeler insurance plan has the possibility for a concession from your insurer. *
- The procedure for acquiring NCB
Upon renewal, the bike insurance company offers a concession for each year without a claim in the form of NCB. The concession rate is a percentage that grows with each claim-free policy year. The maximum NCB available is 50%. Therefore, when it’s time to renew your 2-wheeler insurance, pay close attention to the number of years you’ve gone without filing a claim and obtain the concession accordingly. *
- Notable NCB characteristics include:
Avoid making modest claims. Normal wear and tear are inexpensive, and you can manage these costs yourself. Claiming for nominal sums will result in the loss of your collected NCB benefit. Reserve your insurance policy for catastrophic losses. *
A claim of any size can result in the loss of NCB. If you have accumulated 50% NCB and then when you actually claim bike insurance, you will lose the entire amount. The incentive will not be forfeited even if you decide to sell your bike. When purchasing a new two-wheeler, you can quickly transfer your earned NCB and receive a concession on your insurance price. *
NCB is only available to those who have acquired a complete policy. A third-party policy does not offer NCB benefits, even if you file no claims. *
Don’t let your bike insurance policy lapse. If you wish to retain your accrued NCB, you must ensure that your expired pass is renewed on time. Most insurance firms include a 30-day grace period during which you can renew your two-wheeler insurance coverage and retain your discount. *
However, if you fail to renew even then, you will lose all of your NCB, and your car will be inspected when you attempt to renew the expired insurance. *
Once you are familiar with the phrase NCB and comprehend how it operates, it will prove to be quite advantageous. Make use of an online two-wheeler insurance premium calculator to obtain significant discounts. *
* Standard T&C Apply
‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘
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