The bleak view of the local bus or train windows while sitting on worn seats put matters into perspective. Loud chatter, arguments about space issues, and stepped toes make one ask themselves – what if this commute was comfortable and faster? There must be some way for local commuters to find some solace in their monotonous and tedious daily travels. And, yes, there is!
After saving up for months and years, perhaps even taking out a loan, you finally purchase a two or four-wheeler. Its shiny and unscratched exterior promise great envy at the expense of others. The two-wheeler might attract the attention of onlookers as you zoom past them, riding through nooks and crannies. A four-wheeler will give you the much-deserved comfort after a long day of work – even while stuck in traffic!
However, cranking up the tunes or reaching the destination in minutes isn’t all there is to this new acquisition. Your responsibility as a motorist has just begun! Aside from passing drivers’ tests and other formalities, there are certain rules that all motorists must adhere to.
As per the Insurance Regulatory and Development Authority (IRDA), motorists in India must compulsorily own vehicle insurance. Whether it’s a two or four-wheeler, they must own motor insurance. So, even if a vehicle owner neglects first-party insurance, they must purchase third-party insurance mandatorily.
NCB in Motor Insurance
Before you scoff in annoyance and complain about purchasing these policies, hear us out! Motor insurance has numerous benefits and features for drivers/riders, their passengers, and fellow pedestrians/motorists. If your vehicle encounters an accident, these policies will cover the damages suffered by the vehicle and offer compensation to any third parties involved. The latter includes your pillion rider and other vehicles involved in the collision.
Moreover, motor insurance comes with additional benefits like no-claim bonuses! This feature is a reward for motorists who renew their policies without making any claims during a policy year. Through the no-claim bonus, you can avail a discount while renewing the policy for the following year. It’s a lucrative incentive encouraging vehicle owners to use their active policies responsibly!
Now, doesn’t that make a world of difference? While adhering to IRDA-mandated rules, you are rewarded with a handsome discount! And, the best part? The motor insurance also covers certain car modifications to finance damage repairs and maintenance. If you’re curious about how this arrangement works, here’s the run-down on no-claim bonuses for motor insurance.
● Insurers may offer a 20% NCB discount for no claims made in the first policy year
● An additional 5% discount will be provided from the second consecutive no-claim year
● The sixth successive year might bring in a whopping 50% discount
The bottom line is that being a good driver and protector of your vehicle comes with long-term rewards. With every no-claim year, these NCB discounts continue accumulating to lower the burden of paying hefty premiums. Certain risks stand in your way of ruining this clean track record.
Losing NCB Discounts: Small Claims & Others
Regardless of how slowly you drive, carefully turn at curbs, and give pedestrians the extra minutes to cross – minor damages are inevitable! And the repairs for some of these damages can be claimed.
And some of these damages are covered under your motor insurance. But, the question remains, should you file that claim, or is it worth it? While there’s no concrete answer to them since they’re conditional, it’s best advised to avoid filing claims for minor damages. In these circumstances, try to finance these expenses yourself to avoid losing the efforts of accumulating NCB discounts.
That said, small claims are not the only obstacle to tarnishing a clean no-claim record. Even failure to timely renews the policy will cost you the accumulated NCB discounts.
While the fear of losing an NCB discount might keep one on their toes, it shouldn’t entirely deter them from availing policy-provided benefits. Most motor insurance policies offer coverage for natural disasters, fires, theft, self-ignition, etc. In case you encounter such tragedies, freely make the necessary claims. In the end, the no-claim bonus serves to ease the burden of high premiums and not strike fear among its policyholders!
If you own motor insurance, set up reminders to schedule the next policy renewal. And, if you haven’t purchased it yet or wish to buy one, hop on over to Bajaj MARKETS! Visit the website or use the app to apply for motor insurance and start preparing to reap those handsome no-claim bonuses.