Benefits of NCB Protection Add On Cover In Bike Insurance

Having bike insurance that offers you the required coverage is imperative. However, the premium of your bike insurance is one of the most important things you consider at the time of purchase or renewal. The No Claim Bonus is one of the best discounts on your premium that is given by your bike insurance company when you don’t claim your bike insurance for the mentioned policy term.

What Is A No Claim Bonus Protection Cover? 

A no claim bonus is a discount on your premium that is rewarded by your insurance company when you haven’t claimed your bike insurance for the stipulated policy term. Different insurance companies provide different discount rates based on the duration of the term in which you did not claim insurance. If you have a long term policy, most insurance companies retain the NCB component even if you place a claim. However, the number of claims per term is limited, crossing which your NCB component is eliminated. 

The best way to protect your no claim bonus component is by purchasing a no claim bonus protection cover. In this cover, your no claim bonus component is retained even if you make a claim. Thus, you will get a discount on your premium when you renew your insurance policy. This cover is one of the most beneficial add ons for your standard insurance policy. It is a great way to ensure that you pay a lesser premium and also utilize your bike insurance policy.

You may also like to read:- List of Must Have Documents for Bike Insurance Renewal  

What Are The Benefits of The No Claim Bonus Protection Cover? 

Purchasing a no claim bonus protection cover for your bike insurance is very beneficial. It allows you to utilize your bike insurance policy and also retains you no claim bonus component thus fetching a decent discount on your premium. The cumulative nature of the no claim bonus also makes the discount incremental for each policy year. Thus, you will be enjoying the discounts on your premium as well as the facilities of your bike insurance policy. The following are a few major advantages of purchasing the no claim bonus protection cover -

• Discount 

The no-claim bonus helps you to fetch a decent discount at the time of renewing your policy. This implies that you will have to pay a relatively lesser premium when compared to the amount that you would have paid in case you had filed an insurance claim. Thus, it helps you to save your money and gives you an incremental discount every policy year. 

• High Savings 

If you adhere to the terms and conditions mentioned in your policy, your no claim bonus component increases every year. Therefore, a no claim bonus protection cover enables you to achieve a decent discount despite claiming insurance. If you don’t claim insurance consecutively for five years and renew your policy on time, you are eligible to receive a sizable discount.

• Transferable 

The no-claim bonus is associated with the policyholder and not the bike. Thus, you can take forward the NCB component to a new bike insurance policy. This facility is highly useful if you are planning to sell your bike or purchase a new one. The NCB component also stays with you if you decide on changing your bike insurance provider from one company to another.

Also read:

Lost Your Bike Insurance Certificate? Get A Duplicate Copy Online

Take Away

Purchasing an insurance policy is inevitable. According to the Indian Motor Vehicle Act, it is mandatory for every bike rider to own at least a third party insurance policy. However, the increase in the number of vehicles on the road has also increased the number of accidents that take place on a daily basis. Thus it is important to purchase an insurance policy that offers you the required coverage at an affordable premium.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.