No Claim Bonus in Bike Insurance

NCB full form in bike insurance is No Claim Bonus - a reward you earn simply for not making any own damage claims during your policy year. It is a discount on the annual premium and acts as an incentive for safe and responsible riding.

In simple terms, NCB in two-wheeler insurance works like a loyalty discount. Each year you go without filing a claim, your insurer gives you a percentage discount on your next year's own damage premium. The longer your claim-free streak, the bigger your discount grows.

The NCB percentage in bike insurance starts at 20% after your first claim-free year and increases gradually - reaching 25% after two years, 35% after three years, 45% after four years, and maxing out at 50% from the fifth year onwards. That's half your own damage premium saved just for riding responsibly.

Here's what makes NCB special - it belongs to you, not your bike. So when you sell your current vehicle and buy a new one, your NCB calculation for the bike transfers to the new policy. However, if you file your own damage claim, your NCB resets to zero at renewal, and you start building from scratch again.

This is precisely why the NCB Protection add-on exists - to shield your years of accumulated bonus from disappearing after a single claim.

• Lower premiums: The main benefit of NCB is that it reduces your bike insurance premium each year you ride without making a claim. Over time, these can add significantly to your savings.
• Cumulative savings: The discount grows with each claim-free year, meaning long-term riders can enjoy substantial reductions on their insurance costs.
• Transferable: The No Claim Bonus is provided to you, the policyholder, and not your insured vehicle. Therefore, you can get your NCB transferred to a new insurance provider or a new vehicle and ensure the continuation of the benefits.
• Encouraged to drive safely: The NCB discount on bike insurance is provided as a reward for careful driving and avoiding claims despite paying the premium. And the fact that it can be availed up to 50% will encourage you to drive safely and refrain from raising claims.

Understanding the NCB in bike insurance starts with knowing exactly how your discount percentage is determined. The calculation follows a straightforward slab system based on your claim-free years.

The NCB Discount Slabs

Your No Claim Bonus bike insurance discount increases progressively with each year you don't file an own damage claim:

So if you have been riding safely for five years straight without filing any damage claim, you will enjoy a 50% discount on your own damage premium.

Important NCB Rules

NCB is given to the Rider, not the Bike

A key point about NCB for bike insurance - the bonus belongs to you as the policyholder, not your vehicle. So if you sell your current bike and purchase a new one, your accumulated NCB transfers to the new bike's policy.
Similarly, if the policyholder passes away, the NCB passes to immediate family members (spouse, children, or parents) who take over the vehicle.

When Switching Insurers

If you are moving your bike insurance plans from one company to another, the new insurer will honour your existing NCB. You will need to provide either a renewal notice or a written confirmation from your previous insurer showing your NCB entitlement.

If Unable to Find Proof

If you have lost your documents, you can still claim NCB by signing a declaration stating your NCB percentage is correct and that no claims were made during the expired policy period. However, if this declaration turns out to be false, you will lose all your own damage benefits under your policy.

Gap in Coverage

If you sell your bike and don't buy a new one immediately, your earned NCB remains valid. You can use it on a new policy as long as you get fresh insurance within 3 years from the sale date.

NCB Earned Abroad

Riders who earned NCB on overseas insurance can use that benefit when buying a policy in India, provided the new policy is purchased within three years of the expiry of the foreign policy and subject to relevant provisions.

Where Does the Discount Apply?

The NCB discount reduces your own damage premium only - the portion covering repairs to your own bike. Third-party liability premium, which is regulated, remains unaffected.

Understanding Real Savings Over Time

Consider a bike with its own damage premium of ₹3,000:

Long-Term Savings

When you think about NCB for bike insurance over several years, the savings really add up. A rider who maintains a clean record for five years not only pays half the own damage premium but also develops a safety-first mindset that reduces the chances of accidents.

What Happens If You Make a Claim?

Filing an own damage claim during your policy year means:

• You will lose your current NCB percentage at renewal.
• You will have to start building your NCB again from scratch.
• Your next year's premium will be noticeably higher.

This is why many riders with accumulated NCB think twice before filing claims for minor damages. Sometimes it makes more financial sense to pay for small repairs yourself and protect your discount.

TATA AIG offers an NCB protection cover as an add-on to help you keep your hard-earned No Claim Bonus safe.
Here’s what this cover does:

• Your NCB stays safe: You can make a certain number of claims (usually 1 or two depending on the insurer) without losing your NCB discount.
• Works as a safety net: It stops your NCB from going back to zero when you file a claim.
• Good for careful riders: If you have built up a big NCB discount over many years, this add-on helps protect it.
• Costs extra: The add-on may increase your premium, but it can be worth it if you have a high NCB.

This add-on is perfect for riders who want to protect their NCB discount while still being able to file claims when needed. It gives you peace of mind knowing that one claim won’t erase all the benefits you have earned from riding safely.

The NCB Protection add-on is a simple concept - it acts as a shield for your accumulated bike NCB, ensuring one bad day on the road doesn't wipe out years of careful riding.

Here's what happens when you have this cover:

Your NCB stays safe after a claim: Normally, filing an own damage claim means your NCB resets to zero at renewal. But with NCB Protection, you can make one claim (sometimes two) without losing your hard-earned discount. So if you have built up a 50% NCB over five years and need to file a claim, that discount stays with you when renewal time comes.

You need an existing NCB to qualify: This add-on is designed for those who have already accumulated NCB over 2 or more claim-free years. The idea is to protect what you have already earned, allowing you to make a claim without losing your hard-earned discount.

Premium varies by insurer: As an optional add-on, this cover comes at an additional cost. The premium depends on your insurer, your bike’s value, and your current NCB percentage.

Preserves Years of Savings

The most obvious benefit, your NCB discount in bike insurance, stays intact even after a claim. Without this protection, a single incident erases all the discounts you have accumulated. With a 50% NCB, you are essentially paying half for your own damage cover.

Makes Claiming Less Stressful

Many riders avoid filing legitimate claims because they don't want to lose their bike insurance No Claim Bonus. This leads to paying for repairs out of pocket, even when insurance should cover them. With NCB Protection, you can file a genuine claim without worrying about whether the repair is worth losing your discount.

Encourages You to Actually Use Your Insurance

With NCB Protection, you don’t have to hold back from filing a claim. You can use your bike insurance when needed, knowing your hard-earned No Claim Bonus remains safe.

Transfers When You Switch Insurers

Your No Claim Bonus for bike insurance with NCB Protection belongs to you, not your bike. This means you can transfer it to a new insurance provider or a new bike, ensuring your discounts continue uninterrupted.

Peace of Mind for Responsible Riders

If you’ve been a careful rider for years, you should enjoy the benefits without worry. NCB Protection ensures your responsible riding continues to be rewarded, even if an unexpected claim happens.

Your No Claim Bonus is more than just a discount - it is a reward for years of responsible riding. Understanding how NCB works helps you make smarter decisions about your bike insurance plans and saves you real money over time. Whether you are buying two-wheeler insurance online or renewing an existing policy, keeping your NCB intact should be a priority.

For riders who have accumulated significant NCB, the protection add-on is worth considering. It lets you use your bike insurance when you actually need it, without the fear of losing years of earned benefits. Combined with comprehensive bike insurance, NCB protection provides full coverage and maximum premium savings. Ride safe, claim smart and let your careful habits keep rewarding you year after year.