Bike Insurance
No Claim Bonus: A smart way to lower your bike policy premium Motorbikes are statistically more risky than cars. But when you drive you bike carefully you can built up a no-claim bonus. NCB for bikes works in same manner just like they work for cars. In common man’s term when you don’t make any claim on your bike insurance for four to five years you can earn huge discounts on your bike insurance premium. While there several ways to reduce your bike insurance premiums, one of the finest ways is to reserve your No Claim Bonus (NCB).
NCB is a benefit for those who have not claimed insurance during the preceding year of cover. It means the premium that you would be paying in coming years would be lower and you can save a bit on your insurance. NCB are availed under the comprehensive motor policy. Comprehensive policy covers the losses or damage done to the vehicle insured as well as third party liability. It also covers the losses related to health for third party and insured person.
A no claims bonus (NCB), or no claims discount, is a count of the number of years in which you haven’t made a claim on your insurance policy.
You can build up an unlimited number of NCB, but most insurers will only use a maximum of five years when working out a discount. The discounts on bike insurance start at 20 per cent in the second year, and goes up to 50 per cent in the sixth year. In case your vehicle gets damaged, get an estimate for the repairs. If the no-claim bonus amount you stand to forfeit in the forthcoming years exceeds the estimated amount you spend on repairing the vehicle, it makes sense not a raise a claim and pays for the damage yourself. Protecting your NCB can allow you to have two “at fault” accidents without affecting the NCB. So if you have an accident, the NCB remains intact even if your insurer can’t claim their costs back. But this might not save premiums from getting higher costs.
Ideally insurers use your claims history to calculate premiums, with your NCB discount calculated at the end. NCB can also be transferred when you switch insurers before the year is up. You won’t be able to get NCB for that year. Insurers do provide with the proof of your bonus at the end of your policy term or in the renewal letter sent to you. Once you get the proof you can pass this to you next provider when you switch. If your bike insurance policy is cancelled you have two years to reuse your NCB, otherwise it expires and you start from scratch.
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