Almost every second person in India owns a bike or scooter. Since bikes are prone to accidents, individuals prefer to buy two-wheeler insurance to protect their vehicles from various damages.
However, most people, even after purchasing bike insurance plans, are not familiar with various insurance terms. One such term is NCB in bike insurance. Here, we will learn in detail about the TATA AIG no-claim bonus and how it impacts the premium.
What Bike Insurance NCB Means
NCB, or no-claim bonus in bike insurance, is a financial reward for each claim-free year. It is a smart way to reduce your two-wheeler insurance premium, putting more money back in your pocket.
Under this, if a policyholder does not raise any claim for damages or losses during the policy tenure, then in subsequent years, insurance providers will offer a subsequent discount on the policy premium.
The no-claim bonus encourages drivers to ride safely, avoiding accidents or vehicle damage, and in return, insurance providers offer discounts.
TATA AIG No Claim Bonus
TATA AIG offered a no-claim bonus discount to the policyholder for not filing a claim against two-wheeler insurance during the policy tenure. The Insurance Regulatory and Development Authority of India (IRDAI) has set the discount limit based on the claim-free year.
The no-claim bonus discount offered on the own damage premium at the time of policy renewal is 20% after the first claim-free year. Subsequently, the percentage of the NCB discount under the TATA AIG two-wheeler insurance plan increases.
The highest discount policyholders can avail of TATA AIG’s two-wheeler insurance is 50% after the fifth claim-free year.
Furthermore, the no-claim bonus is issued to the policyholder, not to the bike; hence, if the policyholder decides to change bikes, the NCB discount can be transferred to their new bike.
NCB Calculation For Bike and How it Affects Premium
The NCB calculation for bikes starts at the time of renewal of a two-wheeler insurance policy. A discount of 20% is granted to the policyholder at the renewal of their two-wheeler insurance policy for a claim-free year.
For every claim-free year, this discount increases by 5 to 10%. Below is the table featuring NCB discount for two-wheeler insurance.
| Claim Free Year | NCB Discount |
| After First Year | 20% |
| After Second Year | 25% |
| After Third Year | 35% |
| After Fourth Year | 45% |
| After Fifth Year | 50% |
Let us take an example to understand how NCB affects the bike insurance premium. Suppose Rahul purchases a two-wheeler insurance plan with an insured declared value of ₹1 lakh and a premium amount of ₹6000 per year.
During the policy tenure, Rahul did not raise a claim against damage or loss. Therefore, at the time of the two-wheeler policy renewal, he is eligible for a 20% NCB discount.
Hence, Rahul only needs to pay ₹5100 instead of ₹6000 at the time of policy renewal, since he has availed a discount of ₹900 on his own damage component. If Rahul has not made a claim for 5 years, he is eligible for a 50% NCB discount, bringing his premium to ₹3750.
Benefits of TATA AIG No Claim Bonus
TATA AIG’s no-claim bonus offered under the two-wheeler insurance policy provides several advantages to the policyholder, such as:
- One significant benefit of the NCB discount offered by TATA AIG is that policyholders can get a lower premium at the time of policy renewal. Policyholders can avail of a minimum 20% discount and a maximum 50% discount on policy premiums.
- Another significant advantage of the TATA AIG no-claim bonus is that it is issued to policyholders and not to bikes. If policyholders decide to purchase a new bike or sell an old bike at some point, the no-claim bonus will remain with them.
- It eases the renewal process. Policyholders who have no claim discount do not have to go through the lengthy paperwork and documentation process.
- TATA AIG’s no-claim bonus is not just about savings. It is about safety. By encouraging riders to drive safely, it ensures a secure road environment and offers savings on premium amounts.
When is NCB Terminated?
NCB can become zero in either of the mentioned situations:
- If a policyholder has made a claim against the policy, the no-claim bonus will be terminated. This means policyholders will not be eligible for a discount at the time of policy renewal.
- If the policyholder has not renewed their policy within 90 days from the actual days of policy expiration, then the NCB will be terminated.
Conclusion
The NCB in bike insurance is highly beneficial for riders. It not only encourages them to ride safely but also offers discounts on the premiums. TATA AIG offers two-wheeler insurance plans that are tailored to meet your specific vehicle requirements.
With the TATA AIG two-wheeler insurance plan, policyholders will also get no claim bonus benefits for not making claims during the policy tenure.
