What is No Claim Bonus Protection Add On in Bike Insurance

When it comes to saving on bike insurance premiums, the No Claim Bonus (NCB) is one of the most attractive benefits for policyholders. By riding safely and not making claims, you can earn discounts that significantly reduce your renewal premium over time. However, what happens when you need to file a claim due to an accident or damage? This is where the No Claim Bonus Protection Add-on comes into play. It allows you to retain your hard-earned NCB even after making a claim. Let’s explore this add-on in detail.

What is No Claim Bonus (NCB)?

No Claim Bonus (NCB) is a reward given by insurance companies to policyholders for not making any claims during the policy year. It’s a discount on the renewal premium, which increases with each consecutive claim-free year. The more claim-free years you have, the higher the discount. Typically, the NCB starts at 20% for the first year and can go up to 50% after five claim-free years, helping policyholders save a substantial amount on premiums.

What is No Claim Bonus Protection Add-on?

The No Claim Bonus Protection Add-on is an additional coverage option you can purchase with your bike insurance policy. This add-on allows you to retain your NCB even if you file a claim during the policy term. Without this add-on, making a claim would result in the loss of your accumulated NCB, increasing your renewal premium. With the NCB Protection Add-on, you can safeguard your discount, ensuring your premium doesn’t shoot up after an accident or damage claim.

How Does NCB Protection Work?

The NCB Protection Add-on comes with specific conditions under which it applies. Here’s how it works:

Limited Number of Claims: Insurance companies typically allow a limited number of claims (often 1-2) in a policy year with the NCB Protection Add-on. If your claim falls within this limit, your NCB remains intact.

Coverage for Small Claims: In the case of minor repairs or damages, filing a claim can reduce your NCB, but with the protection add-on, you can still keep your accumulated bonus.

Major Accidents and Exceptions: While this add-on covers a range of claims, it may not apply in extreme cases like total loss or theft of the vehicle.

Why Should You Consider the NCB Protection Add-on?

The NCB Protection Add-on is an excellent option for bike owners who have accumulated a high NCB and want to protect it from being reduced after making small claims. Here’s why you should consider it:

Long-term Savings: Retaining your NCB, even after making a claim, helps you save money in the long run. Without the add-on, you might lose out on discounts that have taken years to accumulate.

Peace of Mind: Knowing that your NCB is protected can give you peace of mind when filing claims for minor accidents or damages.

Minimal Impact on Premiums: By preserving your NCB, you ensure that your premium remains affordable, even if you need to file a claim during the policy year.

For example, if you're insured with SBI General Bike Insurance, having the NCB Protection Add-on can help you retain your NCB benefits even after making an allowable number of claims, ensuring that your premium remains competitively low at renewal.

Eligibility Criteria for NCB Protection Add-on

Not all policies or bikes are eligible for the NCB Protection Add-on. The main eligibility requirements include:

No Claims in the Previous Year: You must not have made any claims in the previous policy year to be eligible for this add-on.

Applicable to Comprehensive Insurance: NCB and the NCB Protection Add-on are only available with comprehensive bike insurance policies, not third-party insurance.

Specific Policy Terms: Some insurance companies may have additional criteria, such as the age of the bike or the type of coverage purchased.

How to Buy NCB Protection Add-on?

Purchasing the NCB Protection Add-on is straightforward. Here’s how you can get it:

During Policy Purchase or Renewal: You can opt for the NCB Protection Add-on when buying or renewing your comprehensive bike insurance policy. Many insurers offer this as an optional add-on.

Online Purchase: You can easily add the NCB Protection Add-on through online insurance portals, where you can select it during the policy customization process.

Consult Your Insurer: If you’re unsure about how to get the add-on, consult your insurer or agent for guidance on eligibility and premium costs.

Final Thoughts

The No Claim Bonus Protection Add-on is a valuable tool for bike owners who want to maximize their long-term savings and avoid premium hikes after minor claims. By opting for this add-on, you can retain your NCB even when unexpected accidents occur, making it a smart choice for any responsible rider.

FAQs on NCB Protection Bike Insurance Add-On

1. How much does NCB Protection Add-on cost?

The cost of the NCB Protection Add-on varies by insurer but is generally a small percentage of the overall premium.

2. Can I retain NCB even after making multiple claims?

Typically, NCB Protection covers a limited number of claims (often 1-2) in a policy year. If you exceed this limit, your NCB may be affected.

3. Is NCB transferable if I switch insurance companies?

Yes, NCB is transferable when you switch insurers, as long as you haven’t made any claims that reduce the bonus.

4. Does NCB Protection apply to third-party bike insurance?

No, NCB Protection is only available with comprehensive bike insurance policies, not third-party coverage.