What is NCB (No Claim Bonus) in Bike Insurance? [Complete Guide]

When you do not make any claims during one year on your bike insurance policy, the insurance provider will give you a benefit known as the No Claim Bonus (NCB). Essentially, the NCB is a discount on the Own Damage (OD) cover.

Reduced bike insurance premiums can help you lower your monthly expenses. In the first year of no claims, you will receive a 20%, No Claim Bonus on bike insurance. 

If you do not make any claims in a single year, you will accumulate NCB, which can amount to as much as 50% after four consecutive years. You can get a 50% discount on your OD cover premium after the end of five claim-free years if you continue to maintain your claim-free status. 

As it turns out, the No Claim Bonus is essentially a reward insurance providers offer for driving safely, cautiously, and responsibly. By providing NCBs, insurance companies essentially encourage their policyholders to drive safely.

Use our  Ontrack App to search for RTO vehicle Information and information on bike insurance.

Things to remember about NCB:

No Claim Bonus (NCB) on bike insurance has a few things to remember:

  1. NCB is given in the renewal discount form by the insurer as a token of safe riding. It is not for registering claims during the insurance policy period. This simply means that you must avoid raising bike insurance claims for minor damage or small repair needs. In this way, you can assure the retention of NCB.
  1. Few know that NCB is given only with the Comprehensive Two-Wheeler Insurance Policy (Not with the usual Third-Party Liability Plan)
  1. NCB terminates in certain cases. For instance, when you fail to renew the insurance policy within the stipulated time, the renewal lapse impacts the NCB validity. Make sure to follow the standard protocol to avoid termination.
  1. Simple transfer of NCB to new bike insurance is possible during the selling procedure of the vehicle. The insurance company allows the transfer of NCB by mandatory issuance of NCB transfer certificates.
  1. Know that the NCB can’t be shared between two different policies. This is when the NCB is earned for not raising a claim during the period of policy validity.

How to check NCB in Bike Insurance?

By referring to the NCB slab you can easily find the suitable NCB for your vehicle insurance.

Check the insurance policy document which mentions the NCB calculation or the NCB earned after the renewal of insurance of your vehicle. 

How does NCB Work?

Let’s understand the working of NCB using an example!

Imagine you buy bike insurance with an IDV of Rs. 1.25 lakh. You pay a premium of Rs. 15,000 per annum. In this case, if you don’t initiate a claim in the 1st year of insurance, then you earn NCB of 20% of the annual premium which is 12,000 in this case.  

In this way, you benefit from the bonus premium, No claim Bonus is only applicable when it’s coverage of your own damage and not a third-party liability insurance policy. You must check the rate of NCB every year to benefit the most from the bonus premium.

What are the benefits of NCB in Bike Insurance?

If you do not raise claims during the insurance policy period, make sure to get the maximum benefit from the No Claim Bonus(NCB) on your bike insurance. Here are certain benefits of NCB you should know:

  • If no claim is raised during the insurance validity period, the NCB is offered to you as a bonus or discount. This is possible only when you pay the renewal premium and follow the standard procedure without any penalty or issue. In this way, you can take advantage of the profit that comes with no claim raise in a year. Do not forget that this benefit is provided during the policy renewal period. The purpose of this kind of premium bonus is to promote vehicle safe driving and strict adherence to traffic rules and regulations.
  • NCB earned belongs to the owner or the bike insurance holder.  If you ever want to or are planning to change the insurance provider or insurer, you can simply transfer the insurance company without any hassle.

How to transfer NCB to new bike insurance?

If you ever feel the need to change your insurance company, here is a detailed procedure(step-by-step) to initiate and execute the transfer process:

  1.  Firstly, you must contact the insurer and inform them about the need to change or transfer the insurance plan.
  1. Once you obtain the NCB transfer certificate from your previous insurer after the transfer request, submit the delivered note to a new buyer and then provide it to the new insurer.
  1. Submit Forms 29 and 30.
  1. Finally, make the payment of the policy premium for the new bike insurance plan.

Documents required for successful NCB transfer:

  • NCB transfer certificate
  • Forms 29 and 30
  • The delivery note provided by the new buyer


Now that you’re completely informed and aware of the massive benefits of NCB in bike insurance, make sure to get the right bonus premium at the time of insurance renewal for the bike. Ensure that you benefit from the insurance policy with the help of its services and bonus premiums. To enjoy an affordable and swift claim process, consider Ontrack for your Bike insurance needs!

Frequently Asked Questions(FAQS)

What is NCB validity and how can one check it online?

NCB retention certificate validity depends on the date it has been issued. Usually, the NCB is valid for up to two years. To know the expiration date of your NCB, you must check the NCB retention certificate.

What is important while deciding on NCB?

A bike insurance holder must be aware that in case he/she cancels the insurance policy before tenure completion, the bonus earned can go waste. Also, the renewal of insurance must be carried out without missing the date of expiry(Ideally, 90 days). If you fail to renew on time, you can lose the benefit of NCB completely.

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