No-claim bonus (NCB) rewards policyholders who haven’t made any claims. It is a way of encouraging policyholders to be more responsible with their vehicles and maintain them in good condition. NCB can be accumulated over the years and can be used to get discounts on premium payments when renewing or buying a new bike insurance policy.
Why Should One Get Long-term Bike Insurance?
There are several benefits of having long-term bike insurance, as it offers financial protection against uncertainties for a longer period. In the event of an accident, you would not have to worry about making frequent renewals or claims, as your bike would be covered for a longer period. Long-term bike insurance also offers a No Claim Bonus (NCB), which can help you save on your premium costs.
Using an NCB protection cover with your long-term bike insurance can be beneficial in several ways. It not only offers you financial protection for a longer period but also helps you save on your bike insurance premium costs. NCB increases every year, provided there are no claims made during the policy period.
Benefits of NCB
Accumulating NCB has many benefits, especially in the long term. It not only helps to keep premiums low but also makes it easier to get insurance coverage in the future. Here are some of the benefits of NCB in long-term bike insurance:
- Helps to keep premiums low: The main benefit of NCB is that it helps to keep premiums low. This is because insurance companies view policyholders with no claims as less risky and therefore offer them lower premiums.
- Makes it easier to get insurance coverage for long-term bike insurance in the future: Having a good NCB history makes it easier to get insurance coverage. This is because insurers will be more willing to offer coverage to policyholders with a good track record of not making claims.
- Gives peace of mind: Having NCB gives policyholders peace of mind knowing that they are less likely to increase their premiums due to making a claim.
- Encourages responsible vehicle ownership: NCB encourages policyholders to be more responsible with their vehicles. This is because they know that making a claim will result in their NCB being reduced or lost entirely.
Single-Year Policies Vs. Multi Year Policies
Bike insurance is generally provided for a one-year policy term. This means that every year, you have to renew your policy and pay the bike insurance premium all over again. If you are someone who does not like the hassle of renewing their policy every year, long-term bike insurance could be a better option for you.
Long-term bike insurance policies are designed for bike owners who want to save time and money by insuring their bikes for multiple years at once. By opting for a long-term policy, you can insure your bike for 2 to 3 years with just one premium payment. This saves you the hassle of renewing your policy every year and can also help you save money on your bike insurance premium.
What Needs to be Considered Before Opting for NCB?
There are certain things that need to be considered before opting for NCB in long-term two wheeler insurance.
- The first thing to consider is, the purpose of opting for NCB. If the policyholder is not planning to make any claims during the policy period, then it makes sense to opt for NCB. However, if there is a possibility of making a claim, then it is advisable to forego the NCB and opt for a policy with comprehensive coverage.
- Another thing to consider is the tenure of the policy. NCB can be accumulated over three years. However, suppose the policyholder is not planning to continue the policy for more than three years. In that case, it is advisable to forego the NCB and opt for a policy with comprehensive coverage.
- Finally, the policyholder of long-term bike insurance should consider the cost of the premium. If the cost of the premium with NCB is lower than the cost without NCB, then it makes sense to opt for NCB. However, if the cost of the premium without NCB is lower than the cost with NCB, it is advisable to forego the NCB and opt for a policy with comprehensive coverage.
What if No Claims are Made Until the Due Date?
If you do not make any claims on your bike insurance policy by the due date, you will be eligible for a No Claim Bonus (NCB). This is a discount that is applied to the premium of your bike insurance policy. The NCB can be applied to both new and renewal bike insurance policies. It is important to note that the NCB can only be claimed if you have held your bike insurance policy for a minimum of 12 months.
Is it Possible to Port a Bike Insurance Policy?
Yes, you can port your bike insurance policy which is a simple process and can be done online. All you need to do is submit a request to the insurer with your current policy details, and the new insurer will take care of the rest. You may want to port your policy if you are not satisfied with your current insurer or if you find a better deal elsewhere.
What Could Be the Reason for a Bike Insurance Policy Being rejected?
There could be several reasons why your long-term bike insurance policy has been rejected. It could be because you have not paid your premium on time or made a claim in the past. It is also possible that your bike insurance policy has been canceled due to non-compliance with the terms and conditions. If you are unsure why your policy has been rejected, you can always contact the insurer for more information.
NCB is a great way to keep premiums low and encourage responsible vehicle ownership. It is also a valuable asset that can make it easier to get bike insurance coverage in the future. If you are looking for long-term bike insurance, be sure to ask about the NCB benefits that may be available to you.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
