A No claim Bonus or NCB is essentially a benefit given to those people who did not claim for insurance for the year preceding the cover. This means that if in one year they do not make any claims then the next year they will have to pay a lower premium. This NCB can be availed under a comprehensive bike insurance policy insuring either cars or two-wheelers. The comprehensive motor insurance policy covers damage or loss to the vehicle along with third party liability.
The conditions applicable for NCB
You need to bear in mind that the no claim bonus is applicable only to the own damage portion of the premium, which amounts to 80% of the total premium payable. The remaining 20% is the third party damage premium. If at all you make a claim then your no claim bonus will be back to zero. Hence the next year premium amount will be higher as you will not get the benefit of the NCB that you earlier enjoyed. However, nowadays some insurance companies have started offering an add-on cover, which provides protection to the NCB of a policyholder. Which means that if you take add on the cover then it will retain your 20% no claim bonus, in spite of making an insurance claim in the same year.
How you can save
The discount on two-wheelers and cars start at 20% during the second year and go up to 50% in the 6th year. This means you will end up saving a minimum of Rs. 2400 to a maximum of Rs. 6000 if the premium of the insurance policy is Rs. 12000. The rate for no claim bonus is the same for all insurance companies. Hence if you really want to save money, then when your vehicle gets damaged, you should get an estimate for the repairs. If the no claim bonus is more than the estimated amount that you need to spend on repairs, then it will be advisable to not make a claim and instead, pay for the damage yourself.
Why you should opt for no claim bonus
Apart from getting discounts in the premium, you can also save money on the first premium for a new vehicle, which is subject to some conditions. As the no claim bonus is linked to the policyholder and not the vehicle, it is possible to transfer your no claim bonus from one insurance company to the other and also to a new vehicle of the same type. For instance, it is possible to transfer the no claim bonus of a two-wheeler to a new two wheeler only and not a car. Here you also need to have sold the old vehicle for a new one and also need to have accumulated a no claim bonus.
How to choose the best insurer
In spite of the fact that the No claim bonus is the same with all insurance companies, there are many parts of a two wheeler insurance policy that can differ a lot. This is the reason that you should compare the policies provided by different insurance companies before you decide on the one that you wish to opt for. The best way to do this is to conduct some research online as all insurance companies have their own user-friendly websites. These websites provide complete information about their policies and also have premium calculators which will help you understand the amount of premium you need to pay for the certain type of coverage.
You can compare premiums and covers of two wheeler insurance provided by different insurance companies and shortlist 3-4 of them. Once this is done, you need to check the number of claims settled per year by each insurance company and in how much time. This information is also available online along with reviews and testimonials are written by people who have bought insurance from a particular insurance company earlier. With this method, you will be able to single out the insurance company with which you wish to do business.
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