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How to Calculate NCB for Two Wheeler Insurance?

By Vikas Chandra Das
21 July 2022, 11:46 AM

33% of Indian households own a two-wheeler but only a small percentage of these owners file for a claim every year. This is a positive sign! It reflects that most two-wheeler riders are careful about their bike. If you’re a safe rider, your insurance provider benefits too! Since you are not raising any claims, they can enjoy huge profits. In order to reward you, the insurance provider offers a percentage known as the No Claim Bonus (NCB). Let’s understand better -  

What is No Claim Bonus (NCB)? 

Do you remember when you were 7 years old and your dad would reward you with your favourite gulab jamuns if you studied well and scored well on your exam? A No Claim Bonus (NCB) is your gulab jamun for being a good biker. 

A No Claim Bonus (NCB) is a unique percentage discount offered to riders with no history of claims. Your No Claim Bonus (NCB) can be claimed at the time of renewal. However, if you continue to be a safe rider with no accidental damages to your two-wheeler, you can collect your No Claim Bonus (NCB) throughout the years.  

How is NCB determined? 

Your No Claim Bonus (NCB) is offered at the end of the policy term of your two-wheeler insurance. No Claim Bonus (NCB) can only be applied to Own Damage part of your premium. 

At the end of the first claim-free year, you get a 20% discount on your premium. The discount increased by 10% for every following year. If you don't file for a claim, your discount is accumulated. The table below compares the No Claim Bonus (NCB) in % with respect to years -

Claim-free yearsNo-Claim Bonus (in %)
After 1st 20%
After 2nd 25%
After 3rd 35%
After 4th45%
After 5th 50%

*PRO-TIP: If at the time of renewal, you decide to change your insurance provider, you can even transfer your No Claim Bonus (NCB). 

Understanding NCB with an Example: 

Imagine two friends, Arun and Varun. In 2010, both the friends decide to get a Royal Enfield 350 each. Arun loves road-trips and has good experience with ghats and accident-prone areas. Varun, on the other hand, is the risk-taker and lover the thrill of pumping adrenaline. As you may have guessed - Arun is a safe driver while Varun has a history of claim settlements. 

In 2015, both Arun and Varun decide to renew their bike insurance policy. Arun has collected his No Claim Bonus (NCB) since he did not raise any claims. While Varun lost his No Claim Bonus because he was compensated for accidental damage in 2014. 

The table below will give you an idea about the cost of their bike insurance renewal 

Cost ( in INR)ArunVarun
OD Premium for Two-Wheeler Insurance 2,5002,500
Mandatory Third Party Premium750750
No Claim Bonus (NCB)50% (after 5 claim-free years)0%
Net OD Premium Amount1,2502,500
Total Premium Amount2,0003,250

* Values are indicative and subject to change

Is there a way to lose the No Claim Bonus (NCB)? 

Whenever you raise a claim, you will lose your No Claim Bonus (NCB) regardless of the year of your policy. Another common way to miss your No Claim Bonus (NCB) is by failing to renew on time. If you don’t renew within 90 days from the date of expiry of your policy, your No Claim Bonus (NCB) will be reduced to zero. 

How to file for a claim without losing No Claim Bonus NCB? 

There is no obvious way to file a claim without missing your No Claim Bonus (NCB). However, some insurance providers offer an NCB Protect add-on cover. With this cover, you can make a limited number of insurance claims (generally just one) in a year without losing your No Claim Bonus. 


No Claim Bonus (NCB) is a way to reward good riders with no claim history to promote road safety. The percentage discount of No Claim Bonus (NCB) increases as the number of claim-free years increase. This indicates that if you are a consistently safe rider, you can save more.

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