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No Claim Bonus is a reward for not making a claim during the previous policy year. This works as a discount on your premium and increases with each claim-free year and can range from 20% to 50% and significantly reduces your insurance costs.
Owning a two-wheeler in India offers unparalleled convenience and flexibility, but it also comes with the responsibility of protecting your vehicle from unforeseen circumstances.
Motorcycle insurance, an important aspect of vehicle ownership, provides financial security and peace of mind. Hence, it is important to delve deeper into the various types of bike insurance plans available in India, the benefits of getting bike insurance, factors affecting the premium cost, things to keep in mind while buying bike insurance and the concept of no-claims. becomes Bonus (NCB).
Types of Bike Insurance Plans in India
There are two types of bike insurance plans. This includes:
Third Party Liability Insurance
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It is mandatory as per the Motor Vehicles Act, 1988.
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It covers damages caused by your motorcycle to a third party, including injury, death, or property damage. It does not cover damages to your own vehicle.
Comprehensive insurance
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This type of insurance provides more comprehensive coverage.
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This includes third-party liability coverage and also covers damages to your own bike due to accidents, theft, natural disasters, or fire.
Benefits of getting bike insurance
Taking out bike insurance in India offers several major benefits such as:
Legal compliance
Financial security
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Motorcycle insurance provides financial protection in the event of accidents, theft, or damage to your motorcycle, saving you from bearing the full cost of repairs or replacements.
Peace of mind
Third Party Liability Coverage
- In the event of an accident, it covers the costs of injury, death, or property damage to third parties, protecting you from legal liability.
Coverage for your loss
- Comprehensive insurance covers damage to your bike, including accidents, theft, and natural disasters such as floods or earthquakes.
Factors Affecting Motorcycle Insurance Premiums
Several factors affect the premium cost of motorcycle insurance:
Type of coverage
Cubic Capacity (CC) of Motorcycle
location
Add-ons
No Claim Bonus (NCB)
Considerations before buying bike insurance
Consider the following factors before buying bike insurance in India:
Coverage requirements
Insured Declared Value (IDV)
Add-on cover
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Assess whether you need any additional cover such as zero depreciation, roadside assistance, or personal accident cover.
Claim Settlement Ratio
- Research the claim settlement ratio of the insurer to ensure that they have a good track record of settling claims promptly.
A network of garages
- Check if the insurer has a contract with a garage in your area for cashless claims.
No Claim Bonus (NCB)
- Understand how NCB works and how it can reduce your premium. Protecting your NCB can be beneficial.
What is No Claim Bonus (NCB) in bike insurance?
NCB is a reward for no claim during the previous policy year. This works as a discount on your premium and increases with every claim-free year. This can range from 20% to 50% and significantly reduces your insurance costs.
If you don’t make a claim in a policy year, you get NCB, which is applied as a discount on the renewal premium for the next year. However, making a single claim can reset your NCB to zero.
Maximum Benefits of No Claim Bonus (NCB)
Understanding and using NCB effectively can save you a lot of money on your motorcycle insurance premium. Here are some tips to maximize the benefits of NCB:
Timely renewal
Transfer of NCB
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If you decide to change insurers, you can transfer your NCB to the new policy while retaining the discount you have earned.
Protecting NCB
Collection of NCB
Result
Bike insurance is an essential aspect of responsible two-wheeler ownership in India. It provides legal compliance, financial security, and peace of mind. Understanding the types of insurance, their benefits, factors affecting premiums, important considerations, and the mechanics of NCB is crucial when choosing the right bike insurance plan for your needs.
Remember that while third-party liability insurance is mandatory, comprehensive insurance provides more comprehensive coverage, providing protection for both third-party liabilities and damages to your own motorcycle.
By carefully evaluating your coverage requirements, understanding NCB, and considering the factors mentioned in this article, you can make an informed decision and ensure that your two-wheeler is fit for India’s roads. All this while enjoying the benefits of a no-claim bonus as a reward for your responsible riding.
First Published: 04 Oct 2023, 18:27 IST
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