What is NCB In Bike Insurance?

The Non Claim Bonus (NCB) in bike insurance refers to the discount you could be awarded for not raising a claim for a year on your bike. It is mandatory that you buy insurance for your bike under Section 177 of the Motor Vehicle Act, or you can end up paying hefty fines or face jail time.

It is advisable to know that the higher the NCB is, the lower your insurance premiums will be. So, if you continue to drive safely and if your bike never faces any issues, damages, or accidents, then you can accumulate your No Claim Bonuses that will be handy in the long run.

We always look for ways to reduce the outgo from our pockets when availing services like insurance. With motor insurance, we can save a fortune on the policy in a few ways. One of them is No Claim Bonus (NCB). Do you know what NCB is?


Well, most insurance providers offer an NCB facility at the time of renewing your two-wheeler insurance with them. With this article, you can get a piece of detailed information about exactly what this NCB facility is, how it works, and why it is advantageous.


A No-Claim Bonus (NCB) is a discount offered on the premium at the time of renewal of your insurance policy. An NCB is most common in the case of a car or two-wheeler insurance.

What is NCB in Two Wheeler Insurance?

According to Section 177 of Motor Vehicle Act, all vehicle owners must insure their vehicle and are liable to pay hefty fines if they break any roadside regulations. Thus, if you own a two wheeler like a scooter or a bike, it is mandatory that you buy insurance for it.


In India, you will find a number of insurance providers that offer online bike insurance with several attractive features and benefits. One such benefit is the No Claim Bonus. An NCB on your bike insurance is a reward offered by your insurance provider for making no claims during the term of your policy year.


During bike insurance renewal, the higher the NCB will be, the lower your insurance premiums will be. Hence, it is highly advisable not to claim for minor damages and bike repair work. Paying for these small expenses from your pocket will come in handy in the long run.

How Does No Claim Bonus Work?

Typically, a policyholder can enjoy a 5% discount on the first claim-free year. This discount keeps on increasing on each renewal, along with the increase in premium rates. Thus, if no claim has been made, a policyholder has an opportunity to claim up to 20%-50% on the own damage premium of his bike insurance.


Let us understand this with an example.


Let’s say, Mr Jay and Mr Nilesh both recently purchased the same bike model. Also, they both bought the same comprehensive coverage to safeguard their vehicle. Now, let us assume that Mr Jay did not make a claim during the policy term while Mr Nilesh made a claim.


In such a situation, Mr Jay is eligible for NCB benefit of up to 20%, whereas Mr Nilesh isn’t. If both the parties are paying a premium amount of INR 12,000, here’s how the NCB will work for them :-

Year Premiums To Be Paid
  Mr. Jay Mr. Nilesh
First Year Policy Premium INR 12,000 INR 12,000
Second Year Policy Premium INR 10,000 INR 1000
After applying 20% NCB INR 8,000 Since Mr Nilesh is not eligible to avail discounts under NCB, the total premium paid by him is INR 10,000.

Can You Transfer NCB When You Buy A New Bike?

The accumulated NCB is beneficial to the bike owner. It basically follows you wherever you go! In simple words, the NCB in bike insurance is transferable from your old bike to the new bike. So, if you are planning to buy a new bike this year, you can transfer the NCB earned over your existing bike. It is noteworthy that the NCB is for you (the policyholder) and not for the bike.

Termination of NCB

Your NCB benefit will be terminated in the following two scenarios-


  • If a claim is made in the current policy year
  • If your two-wheeler insurance policy is not renewed within three months from the date of expiry

Benefits of NCB in Bike Insurance

  • An NCB is a great way to reduce your premium costs
  • NCB is transferable to your new vehicle. A policyholder can claim NCB even if he/she sells the old vehicle and buys a new one.
  • NCB can also be transferred to the new owner if the original owner decides to sell his/her vehicle.
  • In an annual policy, making a single claim can freeze your NCB. However, when it comes to long-term bike insurance, only a certain percentage of NCB is deducted. The NCB never becomes zero, unless you cross the limit of the number of claims on your policy.
  • The No Claim Bonus can be transferred in case you want to switch from one insurance provider to another. Know for a fact that NCB is a reward given to you and not your motorcycle.
  • The NCB does not apply to commercial vehicles except for vehicles that are serving as taxis and cabs.
  • You can protect your NCB discount from getting lapsed by buying an add-on cover – ‘no claim bonus protection’ cover – by paying extra premiums.

Limitations to NCB in two wheeler insurance

  • No-Claim Bonus is only offered for ‘Own Damage Cover.’
  • No-Claim Bonus does not apply to Third-Party Insurance
  • No-Claim Bonus is not applicable for ‘Add-on covers’.
  • Even a small claim can wipe out the full reward of an NCB, forcing you to start afresh
  • There is a defined slab for maximum NCB on two-wheeler insurance. This slab may differ from one insurance provider to another. Typically, a 50% NCB is the maximum slab accepted by most insurance providers

Can I Make a Claim And Still Retain My NCB?

There, in fact, is a way in which you can make a claim and yet retain your NCB. However, this depends on your insurer, whether or not they provide the said facility. If they do, you will have to buy NCB Protect add-on cover along with your comprehensive bike insurance plan.


With NCB Protect, you are allowed to make a specific number of claims (usually, it is one) in a year without losing the NCB. A few insurers also have a condition on the number of policy years that should have passed without making a claim before you choose the NCB Protect facility.


So, the next time you are planning to make a claim for minor scratches and dents, remember the NCB benefits that you are about to lose. Make a claim on your bike insurance only when it is of utmost necessity. Until then, keep reaping the benefits of the NCB!


Now that you understand what NCB in bike insurance is, you may also want to know what a zero depreciation bike insurance policy means.