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No Claim Bonus in Bike Insurance - A Complete Guide

By Vikas Chandra Das
27 July 2022, 3:06 PM

Bike insurance is a vital part of any motorcycle owner's life. Besides being mandatory, a two-wheeler insurance plan saves the bike owner from financial losses or legal disputes arising from an accident. No-claim bonus refers to the special discount insurers provide to eligible policyholders on comprehensive or standalone own damage bike insurance policies

A policyholder can claim a no-claim bonus (NCB) discount if s/he has completed one policy year without any claim. However, the NCB applies only to comprehensive and standalone own damage bike insurance policies and not third-party two-wheeler insurance policies. So, NCB is a reward by an insurance company to bike owners for using their vehicles prudently. 

What Does NCB Mean? 

NCB refers to a policyholder's special discount for being a valued customer. It is provided to the policyholders when renewing their policies. But this discount is only allowed when the policyholder does not claim during the policy year. This discount encourages the vehicle owner to drive safely. The NCB discount on insurance premiums generally ranges from 20-50%. 

How Does No-claim Bonus Work? 

NCB begins with 20% after the first claim-free year. Each year your No Claim Bonus increases when you do not claim any amount from the insurer, and the maximum discount you would accumulate is about 50% provided you don't claim for five successive policy years. Hence, you would get an extra discount on the bike insurance renewal. But if you make a claim, NCB would vanish. Let us reiterate that it will only work when you don't claim. 

What Significance Does NCB Hold?

NCB is an essential reward that helps you get a discount while paying the vehicle insurance premium and save you some money. As the percentage of NCB increases every claim-free year, it is the best way to increasingly reduce the premium amount on bike insurance renewal. 

Moreover, NCB is an effective tool that motivates the bike rider to drive carefully. 

How to Calculate NCB in Bike Insurance?

The calculation of the no-claim bonus is straightforward. The percentage of No Claim Bonus starts after completing one year without filing any claim with the insurer. However, the insurance company calculates it in the following way: 

  • No claim is pending or made during the 1st year of an insurance policy; the bonus is at 20% on insurance premium renewal.
  • No claim pending or made during the 2nd consecutive year; the NCB is at 25% on insurance premium renewal.
  • No claim pending or made during the 3rd consecutive year; the NCB is at 35% on insurance premium renewal.
  • No claim pending or made during the 4th consecutive year; the NCB is at 45% on insurance premium renewal.
  • No claim pending or made during the 5th consecutive year; the NCB is at 50% on insurance premium renewal.

However, the discount applies to the own damage premium component only. So, if you have a comprehensive bike insurance policy, the NCB would apply to its own damage premium component only and not the third-party component. In a standalone bike insurance policy, only own damage premium component applies.

Read more - IDV and NCB in Two-wheeler Insurance Explained

Is No-claim Bonus Transferable? 

NCB is transferable when the policyholder wants to buy a new bike by selling the old one. But since it is a claim record-based policy, it is non-transferable when transferring the NCB from one policyholder to another. NCB will not transfer when the ownership of the bike changes. 

However, when one wants to change their insurer, the current insurer sends an No Claim Bonus retention letter to the person. While applying for a new insurance policy, a person must submit the retention letter to get an NCB discount. 

What are the Advantages of No-claim Bonus?

Here are the benefits you get by acquiring No Claim Bonus in bike insurance

  • It helps reduce the amount of the own damage premium component.
  • It works as a reward to the policyholder.
  • It is transferable.
  • It allows an equal level of coverage at a much lower cost.
  • NCB motivates the vehicle owner to drive safely and encourages cautious driving.

What are the Limitations of NCB?

Like every other thing, NCB also has some limitations, which are as follows:

  • It is not available for someone buying having the basic 3rd party cover only.
  • You cannot exceed the NCB discount above 50%.
  • NCB would lapse with a single claim during a year.

What are the Points to Remember About No-claim Bonus? 

Besides all the above information, the policyholder should understand and remember the following things about NCB:

  • Two-wheeler owners can only get the No Claim Bonus with a comprehensive or standalone own damage bike Insurance policy.
  • You cannot get NCB with a third-party bike insurance policy.
  • The No Claim Bonus becomes zero when a person files a claim.
  • It is like an investment for a vehicle owner.
  • When the policyholder fails to renew the insurance policy even within 90 days of the policy expiration date, the NCB benefit will terminate.
  • A person can also avail of the No Claim Bonus protector add-on cover.
  • The NCB is cancelled if a person cancels the insurance policy before the tenure ends.
  • It is non-transferable between two people.

Read more - Benefits of NCB Protection Add-on Cover to Your Bike Insurance


NCB is like the savings of a policyholder upon fulfilling the criteria for getting the same. It is the perfect way to reduce your premium amount on renewal. Renew your existing insurance or buy bike insurance online from Paytm Insurance to get the best offers, policies, affordable prices, and an extraordinary No Claim Bonus.


1. What is NCB in bike insurance?

NCB refers to a special discount offered by insurers for every claim-free policy year. The discount usually starts from 20% and goes up to 50%.

2. How is NCB calculated?

NCB is calculated as a percentage of the own damage premium component. Two bike insurance policies come with NCB benefits - standalone and comprehensive. While standalone will have only its damage premium component, comprehensive will have both third-party and own damage components. So, if the total premium of a comprehensive plan is INR 4,000, out of which own damage component is INR 2,800, the discount rates will apply to INR 2,800 and not INR 4,000. 

3. Who gets the no-claim bonus?

If you do not make any claim in a policy year, you can receive the no-claim bonus. However, you must purchase a comprehensive or standalone damage bike insurance policy to get the same.

4. For how many years can you get a no-claim bonus?

Generally, the NCB is capped at 50% after five successive claim-free years. 



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