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Insurance is a must thing at present. The Amendments brought in the Motor Vehicle Act of 2019 also has a clause for insurance paper. All the two-wheelers caught without insurance paper will have to pay a sum as fine.

So, it is better to have a bike insurance policy and gets the three-way benefit: firstly no fine, secondly free service under insurance and if no service claimed then the benefit of NCB. Now the question must have come to your mind that

What Is NCB?

For your information and understanding, we would like to tell you that NCB is no claim bonus. No claim bonus is a discount on the premium offered by the insurance company subjected to the condition that the insured has not made a single claim throughout the policy term.

How to Check Two Wheeler Insurance Policy Status? 

The Essentiality: NCB plays a major role by encouraging one to drive safely. As, if you drive safely you won’t meet any accident, hence no claim, and thereafter you can avail the no claim bonus in the form of discount to the premiums. 

It is the concern of every person that if I s/he is buying an insurance policy, (whether it is for the two-wheelers) what will be the benefits s/he would get? Well, the two-wheeler insurance has several benefits but here we will be focusing on one of them that is no claim bonus. 

What Benefits Do You Get From NCB?

Withholding the NCB can be beneficial to you in certain ways and few of them are mentioned below:

  • It is Easily Transferable: The NCB is whole and sole in the hands of the insured and if you change your previous insurer, the NCB can be transferred to the new Insurer.
  • Functions As A Compensation: NCB motivates the insured in certain ways as it functions as a compensation. If a person does not use the insurance facility then s/he gets the bonus and it is a reward or compensation for not availing the facility in that year.
  • Decreases Premium: In case you did not claim for the entire year then according to no claim bonus, you get a discount on the premiums you have to pay. The discount acts as a relief to the insured.

After knowing a few of the benefits and essentiality lets do a study on how is the NCB calculated. The detailed study will not only clear your doubts but also will motivate you to have bike insurance in case you are planning to buy one.

Must Read: How To Know My Two Wheeler Insurance Policy Number?

How Does NCB Calculation Take Place?

The NCB to be calculated depends on different factors. The percentage of discount under NCB also varies with the number of claim-free years. No claim bonus has a big impact on the premiums paid by the insured. The discount and the percent of relaxation are considerable. Here are a few things that one should know about no claim bonus for a better understanding of NCB calculation.

Do You Know NCB Proof Is Mandatory?

In case the insured continues with the same insurance company then the NCB will be automatically reflected in the renewal letter. But, in case insured is planning to change the insurance company then s/he will have to generate NCB proof in the new company and thereafter your NCB can be registered or approved.

Blunders Leading To Car Insurance Claim Rejection

What Percentage of Discount Offered Under NCB?

After No. of Claim Free (CF) Renewal Year wise

1st CF Year

2nd CF Year

3rd CF Year

4th CF Year

5th CF Year

Percentage Of NCB Provided






The above-mentioned table presents a crisp and clear percent discount offered under no claim bonus by the insurance companies depending upon the number of unclaimed years. The benefits are very helpful as it lowers down your premium for the upcoming months.

Essential Factors While Purchasing or Renewing Car Insurance

If You Get A Claim Processed During The Policy Term: In case someone gets a claim for two-wheeler processed in the policy tenure then the person gets the benefits of insurance subjected to terms and conditions. The person can not have the advantage of no claim bonus (NCB). 

For a better understanding, an example is the best way out. So, suppose there are two insured members Tathagat and Akshay. Both of them had two wheeler possession named Royal Enfield, Model Classic ABS Redditch Edition DD (350 CC), the New bike or the latest model of 2019. 

Tathagat did not make any claim after the first policy year whereas Akshay made a claim. They both pay a premium according to the following scale mentioned in the table below:

Is Car Insurance Wastage Of Money?



Premium To Be Paid(HDFC ERGO)



1st Year



 Rs.6,545  Rs.6,545

2nd Year



 Rs.5,148.8 (20% discount under NCB for having 1 claim free year)  Rs.6,436

Here the IDV depreciates by 10% per year.


  1. In case of a claim made the premium amount for the second year is the same as that in the first year.
  2. If you have noticed the premium of the second year is less than that of first-year and that is because of the depreciation of the value of bike every year. 

Under the payments made by both the asset-holders, Tathagat gets the no claim bonus under which you can see a decrease of a certain percentage in the premiums of second-year paid by him. Whereas Akshay claimed within the policy period and he had to to the same premium as that in the first year.

Times come when your NCB is not processed. In such a situation all you need to do is not to commit any blunder that might lead to rejection of your no claim bonus. Therefore, here we have got for you situations under which NCB is not considered and you should take care of this. 

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Under What Circumstances NCB Gets Terminated?

  • The renewal of policy should be made within 90 days from the actual date of policy expiration, failing which, the NCB gets terminated.
  • In case a claim has been made during the policy year, then NCB is considered terminated as you can not avail of the benefit of the bonus.

Things To Be Kept in Mind

If you want to enjoy the benefits of the no claim bonus then you must have certain knowledge about the same. For further reference here are a few of the things, one should know and always keep in mind.

  • In case of cancellation of a two-wheeler insurance policy before the completion of tenure, the NCB goes into waste.
  • For transfer of your NCB from old two-wheeler to a new two-wheeler, you will have to present a retention letter which is to be submitted to the insurer.
  • The discount earned under NCB can’t be shared between two different policies.

Importance of Two Wheeler Insurance Policy Renewal on Time


No claim bonus is an add-on benefit provided to the insured and insurance acts as both way shield to policyholders. In case you claim within the policy tenure you get the benefits in form of service facility for the two-wheeler and if you don’t claim facility then the profit is in the form of no claim bonus under which you get a discount on the premiums to be paid. So, both ways you are in benefit. Why wait then? Get your two-wheeler insured and enjoy the benefits of no claim bonus.

How To Calculate NCB For Bike Insurance?

Naval Goel is the founder of He is an Associate Member of the Indian Institute of Insurance`, Pune. He has been authorized by IRDA to act as a Principal Officer of Insurance Web Aggregator.
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