No Claim Bonus in Bike Insurance: How It Saves Money

No Claim Bonus (NCB) in bike insurance is a discount on your own-damage premium for every year you do not make a claim. The longer you stay claim-free, the bigger the discount becomes. It belongs to you, not to your bike, and is usually kept when you renew on time.

Here is how it works and how you can protect it.

What is NCB?

NCB stands for No Claim Bonus. It is a reward from the insurer for safe riding and no claims. It reduces the own-damage part of your premium when you renew.

NCB does not apply to the third-party part of the premium. This means a third-party only policy has no NCB benefit. If you hold a third-party only policy for a year or two and later take a comprehensive one, ask your insurer how your claim-free history is treated.

The usual NCB slabs

The usual slabs are:

1. 20% after 1 claim-free year
2. 25% after 2 claim-free years
3. 35% after 3 claim-free years
4. 45% after 4 claim-free years
5. 50% after 5 or more claim-free years

Insurers may differ a little, so check your policy wording. These discounts apply to the own-damage premium only.

Think of two riders who pay a similar own-damage premium. One has never claimed in 5 years and has the highest slab. The other made a claim last year and has no NCB. At renewal, the first rider gets a larger discount on the own-damage part. The exact amount depends on the policy, so ask for your premium details.

Who owns the NCB?

NCB belongs to the owner, not to the bike. This has two effects:

• If you buy a new bike, you can usually use your old NCB on the new one. Ask your insurer for an NCB certificate or details.
• If you sell your bike, the NCB does not go to the buyer. The seller can use it on a new vehicle. Our guide on transferring insurance and NCB when buying a used vehicle explains this.

How to keep your NCB

• Renew on time. NCB is usually kept if you renew on time. Insurers usually allow renewal within about 90 days of expiry to keep NCB, but check your policy. After a long gap, you may lose it.
• Think before you claim. A claim in a year usually means you lose the NCB for that year. For very small damage, you may choose to pay yourself. Compare the repair cost with the discount you may lose.
• Consider NCB protection. This is an add-on offered by some insurers that helps you keep your NCB after a claim. Terms differ, so read the wording.

Own-damage claims usually reset or reduce your NCB. Rules for other cases, like a claim only for third-party liability, can differ by insurer. Ask your insurer and check your policy.

NCB when you switch insurers

You can usually switch insurers at renewal and carry your NCB with you. Share your old policy details, and the new insurer applies your NCB as per its rules. Keep your old policy copy safe, because it is your proof of claim-free years. Visit our renew vehicle insurance page for help.

If your policy expires and you do not renew for a long time, the NCB may be lost. That is why a reminder a few weeks before expiry is so useful.

How NCB links to your claim decision

When you are deciding whether to claim, think about:

• The repair cost
• The deductible you must pay
• The NCB slab you may lose
• Whether the damage is covered at all

Our bike insurance claim process guide shows the claim steps. You can also read about no claim bonus in car insurance to see how it works for cars.

For full rules, see our no claim bonus page, and to compare plans, get a quote. NCB rules and slabs can change and differ by insurer. Always read your policy wording, because the policy document is final.

FAQs

Does NCB go away if I make a claim?

Usually you lose the NCB for that year when you make an own-damage claim. Ask your insurer how it is handled in your policy.

Can I transfer NCB to a new bike?

NCB belongs to the owner, so you can usually use it on a new vehicle. Ask for proof of your NCB from your insurer.

Is NCB given on the third-party premium?

No. NCB is only a discount on the own-damage premium.

How long can I wait to renew and still keep my NCB?

Insurers usually allow renewal within about 90 days of expiry to keep NCB. Check your policy, as terms differ.

This guide is for information only. Rules and policy terms can change, and the policy document is final. Please read your policy wording.