Owning a two-wheeler is not just about enjoying the freedom of the road; it’s also about protecting your ride with the right insurance. While most bike owners are familiar with insurance policies, there’s a hidden gem that can save you money over time the No Claim Bonus (NCB).
In this post, we’ll explore what NCB is, how it works, and why it’s a valuable benefit for every two-wheeler owner. If you’re looking for reliable bike insurance that offers NCB benefits, check out IFFCO TOKIO Two-wheeler insurance for comprehensive coverage and attractive discounts.
What is No Claim Bonus (NCB) in Two-Wheeler Insurance?
The No Claim Bonus (NCB) is a reward offered by insurance companies to policyholders who do not make any claims during the policy term. It serves as a way to encourage safe riding and responsible ownership. Essentially, the NCB acts as a discount on your two-wheeler insurance premium when you renew your policy, making it a great incentive for maintaining a claim-free record.
How Does NCB Benefit Policyholders?
The biggest advantage of NCB is the reduction in your insurance premium when you renew your policy. Here’s how it benefits you:
Premium Discounts:
The longer you go without making a claim, the higher the discount you receive on your premium. This can lead to substantial time saving.
Encourages Responsible Riding:
Knowing that you’ll be rewarded for not making claims motivates you to ride more cautiously and avoid accidents.
Long-Term Savings:
Over multiple years, the NCB can result in significant savings, making your insurance more affordable in the long run.
NCB Slabs and Discounts
The NCB discount increases with each claim-free year. Here’s a breakdown of the typical NCB slabs:
- After 1 claim-free year: 20% discount
- After 2 consecutive claim-free years: 25% discount
- After 3 consecutive claim-free years: 35% discount
- After 4 consecutive claim-free years: 45% discount
- After 5 consecutive claim-free years: 50% discount
As you can see, maintaining a claim-free record for five years can earn you a massive 50% discount on your renewal premium!
How to Retain or Transfer NCB When Changing Insurance Provider or Selling the Bike
One of the great things about NCB is that it’s transferable. Here’s how you can retain or transfer your NCB:
Switching Insurance Providers: If you decide to change your insurance company, you don’t lose your NCB. Just obtain an NCB certificate from your previous insurer, and you can transfer it to your new policy.
Selling Your Bike: If you sell your bike and buy a new one, you can transfer your NCB to the new bike’s insurance policy, ensuring you continue to enjoy the benefits.
Note: The NCB is associated with the policyholder, not the bike. So, you won’t lose it even if you switch insurers or buy a new bike.
Factors That Can Affect Your NCB
While NCB is a fantastic benefit, certain factors can affect your ability to earn or retain it:
Making a Claim: If you make a claim during the policy period, your NCB will drop to zero.
Policy Break/Lapse: If you fail to renew your policy on time (usually within 90 days of the expiry date), you may lose your accumulated NCB.
Tips to Maintain and Maximize Your NCB
Here are some tips to help you maintain a claim-free record and maximize your NCB:
Ride Safely: Avoid accidents and traffic violations to prevent unnecessary claims.
Handle Minor Repairs Yourself: For small damages, consider paying for repairs out of your pocket rather than making a claim.
Opt for an NCB Protector Add-On: This add-on protects your NCB even if you make a claim, ensuring you don’t lose your accumulated bonus.
NCB Protector Add-On: Is It Worth It?
The NCB protector is an add-on that allows you to retain your NCB even after making a claim. Here’s why should you might consider it:
Safeguards Your NCB:
In case of an accident or damage, the NCB protector ensures you don’t lose your hard-earned bonus.
Cost-Effective:
While there’s an additional cost to this add-on, it can save you a lot of money in the long run, especially if you have a high NCB percentage.
Final Thoughts
The No Claim Bonus is a fantastic benefit that rewards responsible riding and helps you save money on your two-wheeler insurance premium. By understanding how NCB works and taking steps to maintain it, you can enjoy significant discounts and long-term savings. So, ride safely, avoid unnecessary claims, and make the most of this valuable insurance feature.
Owning a vintage or classic motorcycle is a matter of pride for many enthusiasts. These bikes aren’t just vehicles; they are a piece of history, a reflection of craftsmanship, and often, a valuable investment. However, with their unique value comes the need for special protection. This is where bike insurance becomes not just a legal requirement but a crucial safeguard for your prized possession.
The Unique Risks of Vintage and Classic Motorcycles
Vintage and classic motorcycles come with a set of risks that modern bikes do not typically face. For one, the cost of repairs can be significantly higher. Finding parts for a vintage bike, especially those that are no longer in production, can be challenging and expensive. Moreover, the expertise required to repair these bikes is often limited to specialists, which can further drive up costs.
Another significant risk is theft. Due to their rarity and high value, vintage and classic motorcycles are attractive targets for thieves. Even if you take all the precautions to protect your bike, the unfortunate reality is that these motorcycles are more vulnerable to theft than their modern counterparts.
Additionally, these bikes require specialized care and handling. Whether it’s due to their age, unique components, or the need for specific storage conditions, the risk of damage is higher. A minor mishap that might be easily fixable on a new bike could result in significant damage to a vintage motorcycle.
Why Standard Bike Insurance Isn’t Enough
Standard bike insurance policies are designed to cater to the needs of regular motorcycles, which means they often fall short when it comes to covering vintage and classic bikes. One of the primary limitations is the coverage amount. Standard policies might not account for the full value of a vintage motorcycle, particularly if it has been customized or restored.
Moreover, standard insurance policies often exclude coverage for custom parts or the agreed value of the bike. Agreed value coverage is critical for vintage and classic bikes because it ensures that the insurer and the bike owner agree on the bike’s value at the time of policy purchase. This is particularly important because the market value of vintage motorcycles can fluctuate, and standard insurance might only pay out based on depreciated value, which is often far less than the bike’s true worth.
Choosing the Right Insurance for Vintage Motorcycles
When it comes to insuring a vintage or classic motorcycle, it’s essential to choose a policy that offers comprehensive protection tailored to the bike’s unique needs. Look for policies that include agreed value coverage, which guarantees that you’ll be compensated for the full value of your motorcycle as agreed upon when you take out the policy. This is particularly important for bikes that have been extensively restored or modified.
Another critical feature to consider is coverage for custom parts and accessories. Vintage motorcycles often have rare or custom-made parts that can be expensive to replace. Ensuring your policy covers these components is essential to protecting your investment fully.
It’s also wise to consider policies that offer flexibility in terms of usage. Many vintage and classic bikes are not used for daily commuting but rather for special occasions or shows. Policies that account for limited usage can offer lower premiums while still providing full coverage.
The Cost of Insuring Vintage and Classic Motorcycles
The cost of insuring a vintage motorcycle can vary widely depending on several factors, including the bike’s value, how it’s stored, and how often it’s used. While premiums for vintage bike insurance might be higher than for standard motorcycles, it’s a small price to pay for the peace of mind that comes with knowing your prized possession is fully protected.
One way to manage insurance costs is by taking advantage of discounts for features such as anti-theft devices or secure storage. Insurers like Royal Sundaram Two-Wheeler Insurance offer comprehensive coverage options that cater to the specific needs of vintage motorcycle owners, ensuring that you can find a policy that balances protection with affordability.
Final Thoughts
Vintage and classic motorcycles are more than just bikes they are investments, treasures, and symbols of a bygone era. Protecting them with the right two wheeler insurance policy is essential to preserving their value and ensuring they remain in pristine condition for years to come.
Whether you’re a long-time collector or a new owner, understanding the unique risks associated with these motorcycles and choosing a specialized insurance policy is the best way to safeguard your investment.
When accidents happen, knowing how to file an insurance claim for your two-wheeler is crucial. Here is a detailed guide on the claim process for two-wheeler insurance, covering everything from basic insurance definitions to a step-by-step guide.
What is Two-Wheeler Insurance?
Two-wheeler insurance provides financial protection against damage or loss to your bike or scooter, caused by accidents, theft, or natural disasters. It also offers liability coverage for third-party damage or injuries. The insurance policy helps mitigate repair costs and compensates for financial loss. There is mainly two types insurance in two wheeler category,
Third-Party Bike Insurance: Covers damages or injuries caused to others in an accident.
Comprehensive Bike Insurance: Covers third-party liabilities as well as damage to your vehicle.
Each one of these has its own significance and limitations. Hence it is good comparing bike insurance online before buying.
Requirements to Claim Bike Insurance
Before filing a claim, it’s essential to meet specific criteria. Here are the common requirements for claiming two-wheeler insurance:
Valid Insurance Policy
Your two-wheeler must be insured with an active policy at the time of the incident.
Accident Details
You will also require submitting comprehensive details about the accident or event leading to damage, including time, date, and location.
Police FIR (First Information Report)
An FIR may be required for accidents, theft, or vandalism claims, especially when third-party damage is involved.
Bike Documents
Ensure that you have the necessary vehicle-related documents, such as a valid driving license, registration certificate, and Pollution Under Control (PUC) certificate.
Photographic Evidence
Photos of the accident, damage, or injuries can strengthen your claim.
Step-by-Step Guide to Claim Bike Insurance
Inform the Insurer
Notify your insurance company about the accident or damage as soon as possible. Most insurers have a time limit, generally within 24 to 48 hours, to inform them about the incident.
File a Police Report
In cases of accidents involving injury, third-party damage, or theft, you must lodge an FIR with the local police station. The FIR helps the insurer validate the claim.
Collect Evidence
Take pictures of the damage to your bike, the accident scene, and any third-party vehicles involved. This evidence can be useful during the claim assessment.
Submit a Claim Form
Fill out the claim form provided by your insurance company. Include all the necessary details about the accident, policy number, and contact information. Most insurers allow you to file this form online or offline.
Survey by Insurance Adjuster
The insurance company will assign a surveyor to assess the damage to your bike. Cooperate with the surveyor and provide all the necessary documents.
Repair and Claim Settlement
Based on the surveyor’s report, the insurer will approve the claim. You can either get the bike repaired at an authorized network garage (for cashless claims) or at any garage of your choice and get reimbursed later.
Claim Reimbursement
If you opted for reimbursement instead of a cashless claim, submit the repair bill and payment receipts to your insurer for claim settlement. The insurer will transfer the approved amount to your account.
Final Thought
Filing a two-wheeler insurance claim is a straightforward process if you follow the right steps and provide all necessary information. Always read the policy terms carefully to understand what is covered and ensure you file the claim within the stipulated time frame.
FAQs Bike Insurance
1. Within How Many Days of Accident Can I Claim Bike Insurance?
You should inform your insurance company immediately after the accident. Most insurers require you to report the incident within 24 to 48 hours to initiate the claim process. Delayed reporting could lead to claim rejection.
2. Can I Claim Bike Insurance Online?
Yes, many insurance companies allow you to file claims online. You can visit the insurer’s website or use their mobile app to submit the claim form, upload required documents, and track the claim status.
3. Can I Claim Bike Insurance Without an Accident?
You can claim bike insurance without an accident in cases of theft, natural disasters, or damage due to fire. You make to make sure what things are covered under your bike insurance. Generally these situations are covered under comprehensive insurance policies.
4. What is the Average Claim Ratio in Bike Insurance?
The claim settlement ratio (CSR) varies between insurers but is typically between 85% to 95%. This percentage indicates how many claims an insurer settles out of the total received in a financial year.
Ever wondered what bike insurance is all about? Imagine you accidentally bump into another car or bike, insurance would cover the repairs for the other person’s vehicle, or any injuries they might sustain. Bike insurance is like a safety net for you and your bike! It financially protects you in case of an accident.
Importance of Bike Insurance
Bike insurance is more than just a safety net for you and your bike, it’s a financial shield against unexpected events on the road. Here’s why having bike insurance is important:
Financial Protection:
Accidents happen, and even a minor collision can result in hefty repair bills. Bike insurance covers these costs, preventing a financial setback.
Third-Party Liability:
If you cause an accident and injure someone or damage their property, third-party insurance ensures you’re not liable for the expenses. This is mandatory by law and protects you from financial hardship.
Peace of Mind:
Knowing you’re covered gives you peace of mind while riding. You can focus on the road without worrying about the financial consequences of an accident, theft, or natural disaster.
Increased Bike Value:
Comprehensive insurance can enhance your bike’s resale value as it demonstrates to potential buyers that the vehicle is well-protected.
Since riding a bike comes with share of risks, having your bike insured is crucial. But the question comes in mind which bike insurance one should you buy and which one will be beneficial for you? To get clarity it is important to understand the types of bike insurance.
Types of Bike Insurance
Now, there are two main types of bike insurance: Third-party and Comprehensive. Let’s break down the key differences:
Third-Party Bike Insurance:
This is the most basic type of insurance, mandated by Indian law. It covers any injuries or damage caused to a third-party person or their vehicle in an accident you are responsible for. If your own bike gets damaged in the accident, you’ll have to pay for repairs yourself.
Comprehensive Bike Insurance:
This is a more extensive plan that includes everything in third-party insurance, PLUS coverage for your own bike’s damage caused by accidents, theft, fire, natural disasters, and even vandalism.
Knowing your bike is protected gives you peace of mind while riding. You won’t have to worry about a hefty repair bill in case of unforeseen circumstances.
Here’s a table summarizing the key differences:
| Feature | Third-Party Insurance | Comprehensive Insurance |
| Covers Third-Party Damage | Yes | Yes |
| Covers Your Bike’s Damage | No | Yes |
| Theft Coverage | No | Yes |
| Fire & Natural Disaster Coverage | No | Yes |
| Price | Lower | Higher |
Common FAQs About Bike Insurance
Which Bike insurance is best in India?
When it comes to choosing a specific insurance provider, it’s important to compare quotes and look for a reputable company with good customer service. Bharti AXA Bike Insurance is a well-regarded option you can consider among other available choices. Be sure to research and compare different plans before making a decision.
Do I need comprehensive insurance for a new bike?
It’s highly recommended, especially for a new bike with a higher value.
Can I add on extra covers to my policy?
Yes, with comprehensive insurance, you can usually add on covers for things like engine protection or personal accident cover.
How much does bike insurance cost?
The cost depends on your bike’s value, your location, and your driving record.
The insurance industry is undergoing a rapid transformation driven by automation. Manual, paper-based processes are being replaced by intelligent automation solutions, leading to increased efficiency, cost savings, and improved customer experiences.
Challenges tackled by automation in insurance:
- Slow claim processing times: Manual tasks lead to delays in claim processing, frustrating customers and impacting business efficiency.
- High operational costs: Repetitive tasks require a significant workforce, increasing operational costs and hindering scalability.
- Data accuracy issues: Manual data entry is prone to errors, impacting decision-making and compliance.
- Limited customer service efficiency: Repetitive inquiries and tasks strain customer service resources.
Top 5 Automation Tools for the Insurance Industry:
Automation Anywhere Robotic Interface (AARI): This “digital assistant” empowers employees to automate tasks across various applications and platforms. It empowers the insurance industry to overcome challenges and thrive in the digital age. Its Automation Anywhere Robotic Interface (AARI) acts as a digital assistant, automating tasks across various applications and platforms. This streamlines both front-office tasks like claims processing and onboarding, and back-office tasks like underwriting. AARI’s no-code approach makes it user-friendly for employees regardless of technical expertise, fostering widespread adoption and automation across the entire organization. Consequently, insurance companies can experience faster claim processing times, reduced operational costs, and improved customer satisfaction.
The insurance industry deals with complex processes, often requiring human judgment and expertise. UiPath’s Human in the Loop (HiL) addresses this challenge by seamlessly integrating automation and human intervention. It allows robots to handle routine tasks like data entry and initial claim processing, while automatically escalating complex decisions or exceptions to human specialists. This collaborative approach ensures accuracy and efficiency throughout the process. Claims adjusters and other specialists only need to intervene at critical points, allowing them to focus on higher-value tasks and provide personalized service to customers. This ultimately leads to faster claim processing times, improved customer satisfaction, and reduced operational costs for the insurance company.
- Blue Prism Cloud:
Blue Prism Cloud empowers the insurance industry by offering a cloud-based, combined solution of RPA, AI, and deployment tools. This translates to automated knowledge-based tasks across various departments, including claims, customer service, underwriting, and back-office operations. Blue Prism Cloud streamlines processes like customer identification and verification through automated interactions, adhering to pre-defined service-level agreements. This automation increases efficiency, reduces processing times, and improves the overall customer experience. Additionally, the cloud-based nature of the platform ensures scalability, affordability, and easy access for insurance companies looking to embrace automation and gain a competitive edge in the evolving market.
4. Automation Anywhere:
Automation Anywhere Robotic Interface (AARI): This “digital assistant” empowers employees to automate tasks across various applications and platforms. It empowers the insurance industry to overcome challenges and thrive in the digital age. Its Automation Anywhere Robotic Interface (AARI) acts as a digital assistant, automating tasks across various applications and platforms. This streamlines both front-office tasks like claims processing and onboarding, and back-office tasks like underwriting. AARI’s no-code approach makes it user-friendly for employees regardless of technical expertise, fostering widespread adoption and automation across the entire organization. Consequently, insurance companies can experience faster claim processing times, reduced operational costs, and improved customer satisfaction.
- IBM Cloud Paks:
In the fast-paced world of insurance, efficiency and customer satisfaction are paramount. IBM Cloud Paks emerges as a powerful tool for insurance companies, offering an AI-powered hybrid cloud platform to build and modernize applications specifically designed to transform the claims processing experience. This translates to significant reductions in processing times, minimizing frustration and delays for customers. By leveraging intelligent automation capabilities, IBM Cloud Paks empowers insurers to streamline operations, improve accuracy, and ultimately enhance customer satisfaction, positioning them for success in the competitive insurance landscape.
Choosing the Right Tool:
Selecting the best automation platform depends on individual needs and priorities. Consider factors like:
- Specific workflows to automate
- Desired level of human involvement
- Integration with existing systems
- Scalability and future-proofing
- Security and compliance requirements
By carefully evaluating these factors and exploring the capabilities of the top automation tools, insurance companies can unlock the true potential of automation and gain a competitive edge in the evolving landscape.