When you renew your bike insurance, the premium may not be the same as it was the previous year. One factor that can make a difference is your claim-free record. A No Claim Bonus (NCB) can provide a discount on the own damage premium when you meet the applicable conditions. Knowing how NCB is calculated, where the discount applies, and what happens to it when you change your bike or insurer can help you understand your renewal premium better.
How Does NCB in Bike Insurance Reduce Your Premium?
NCB in bike insurance is a discount available for a claim-free insurance record. The discount increases with successive claim-free years, up to the applicable maximum of 50%.
| Claim-Free Period | NCB On Own Damage (OD) Policy Premium |
| One year | 20% |
| Two consecutive years | 25% |
| Three consecutive years | 35% |
| Four consecutive years | 45% |
| Five consecutive years | 50% |
So, if your OD premium is ₹5,000 and your applicable NCB is 35%, the discount would be ₹1,750. The NCB does not apply to the third-party premium.
Why Does the OD Component Matter?
The value of your NCB depends on the amount charged for own damage cover. This means two policyholders with the same NCB percentage could receive different discounts if their OD premiums are different.
For example, a 35% NCB on an OD premium of ₹3,000 would give a ₹1,050 discount, while the same NCB on an OD premium of ₹6,000 would give a ₹2,100 discount. Your NCB percentage stays the same, but the rupee value of the discount changes with the OD premium.
Can Your NCB Stay With You After Changing Your Bike?
NCB is linked to the policyholder, not the vehicle. If you sell your bike and purchase another one, your accumulated NCB may be used for the new vehicle, subject to the applicable requirements.
You may need documents showing your NCB entitlement, such as a renewal notice or confirmation from your previous insurer.
What If You Change Your Insurance Company?
Changing your insurer at renewal does not mean losing the NCB you have earned. You can carry your eligible NCB to the new policy, subject to the applicable terms and requirements. You may need to provide proof of the bonus when you take out the new policy.
Keep these documents ready when you switch:
- Your existing policy document
- Your renewal notice showing the NCB
- An NCB certificate or other proof, if requested
Checking these details before renewal can help ensure that your accumulated NCB is considered when you move to a new insurer.
What Happens to NCB After a Claim?
NCB is based on maintaining a claim-free record. If a claim is filed, the NCB can be lost for the subsequent policy period under the applicable motor insurance rules.
That is why your NCB history deserves attention when you review your renewal documents. The exact treatment should always be checked against the applicable policy wording rather than assumed.
Conclusion
Before renewing a two-wheeler insurance policy, look beyond the total premium. Check the NCB percentage shown in your renewal documents and see whether it reflects your eligible claim-free history. Your NCB is only one element of the premium, but knowing how it works gives you a clearer view of the discount you are receiving. If anything appears different from your previous record, check the policy documents or speak with the insurer before completing the renewal.
