Buying Bike Insurance: Mistakes you Will Never Make Again

Not preserving No Claim Bonus:

If you have driven carefully and avoided any incident, there will be no bike insurance claim by the end of the year. To reward you for being so diligent, your insurer offers a No Claim Bonus that lightens your premium load for the next year. This reward is also for your low-risk status as well as the act of not filing for minor claims.

Here is how to calculate the NCB of a two wheeler. Just as in the case of a car, all you have to do is check if there were any claims last year and last year’s NCB.

Here is a table showing how NCB is calculated across the motor insurance industry.

CLAIM FREE YEAR	BONUS %
1 Year	20%
2 Years	25%
3 Years	35%
4 Years	45%
5 Years	50%
5 +	Depends

This hard earned discount is well worth preserve for the very reason that it keeps on giving benefits over time.

If you have sold your bike, remember to get the relevant documents to protect your No Claim Bonus. It belongs to you, not your bike; so it can be retained and transferred to the new set of wheels that you may purchase in the future.

Do also consider avoiding to file for every minor injury claim as this may cost you the No Claim Bonus.