Updated on 16 Nov 2025
When you own a two-wheeler in India, insurance is not just a legal requirement; it’s your financial safety net.
But did you know you can save on premiums simply by being a responsible rider? This is where the no-claim bonus (NCB) comes into play. If you haven’t made any claims during your third-party bike insurance policy term, you are rewarded with a discount on your next premium.
This blog explores how to calculate the no-claim bonus in your insurance policy and ways to maximise it.
What is a No-Claim Bonus (NCB)?
NCB, or no-claim bonus, is a reward to the insured for their safe driving and claim-free years during the policy's tenure. This NCB rate is expressed as a percentage in your policy document. With every year that passes without a claim, you qualify for a higher NCB rate.
How is NCB in two-wheeler insurance calculated?
The No-Claim Bonus (NCB) is a discount offered on the own damage premium of a two-wheeler insurance policy for every claim-free year. It starts from the second policy year and increases with each consecutive year without claims.
Discount
A 20% discount on the premium awaits if you have raised no claims in the first year. This discount applies specifically to the own damage component of your insurance policy.
Benefit
For each subsequent claim-free year, the NCB percentage increases. Normally, the NCB discount progresses as follows:
- After 1 Year: 20% discount
- After 2 Years: 25% discount
- After 3 Years: 35% discount
- After 4 Years: 45% discount
- After 5 Years: 50% discount
Example of NCB Calculation: Rakesh pays a premium of ₹8,000 for his bike insurance. If he drives cautiously and makes no claims in the first year, he qualifies for a 20% NCB. After the 20% discount, Rakesh's premium for the second year is reduced to ₹6,400. With every passing year, the discount increases for each claim-free year for up to five years.
Why No-Claim Bonus is important
The no-claim bonus (NCB) is important for policyholders for the following reasons:
Rewards safe driving
NCB rewards policyholders for safe driving and not making any insurance claims during the policy period. This encourages policyholders to drive carefully, which is important for their own safety.
Significant premium discounts
NCB provides a significant discount on the premium amount at the time of policy renewal. This discount can start at 20% and go up to 50%. Over time, this can significantly reduce the cost of insurance.
Cumulative benefit
The value of the NCB increases with each consecutive claim-free year. It acts as a financial incentive to maintain a clean driving record over the years.
Transferable
NCB is linked to the policyholder, not the vehicle. This means if you decide to buy a new bike, you can transfer the NCB from your old vehicle to the new one.
Acts as a claim deterrent
Knowing that making a claim can reset the NCB to zero, policyholders are often deterred from making small or unnecessary claims.
How to maximise your No-Claim Bonus (NCB)?
If you drive safely and do not make any claims for 5 consecutive claim-free years, you can enjoy up to a 50% discount on your own damage portion of your premium.
Here is how you can maximise the chances:
- Always ride safely and follow traffic rules.
- Opt for small out-of-pocket repairs instead of filing claims.
- Install anti-theft devices approved by the insurer.
- Renew your two-wheeler insurance online on time to avoid losing accumulated NCB.
- Avoid lapses in coverage by setting reminders for premium payments.
- Choose trusted workshops to keep your bike in good condition.
- Transfer your NCB when buying a new bike to retain the benefit.
- Review your policy annually to ensure adequate protection.
- Consider a long-term policy to safeguard NCB for multiple years.
How to select or apply NCB during renewal?
Here is how to select or apply your no-claim bonus during policy renewal:
- Check your current policy documents to confirm your existing NCB percentage.
- Renew your policy before the expiry date to avoid losing your accumulated bonus.
- When renewing online, carefully select the NCB percentage.
- If switching insurers, request an NCB certificate from your previous insurer.
- Avoid making any false declarations.
- Compare renewal quotes from different insurers to maximise your NCB savings.
- Ensure your renewed policy schedule clearly mentions the correct NCB percentage.
Conclusion
A no-claim bonus is essentially a reward for safe driving practices and refraining from making unnecessary claims. It provides significant discounts on your two-wheeler insurance premiums. However, you must keep renewing your two-wheeler bike insurance plan on time, as a lapse will lead to the NCB accumulated over the years getting reduced to zero.
While you focus on riding safely and keeping your bike in top condition, let us help you protect it financially. Get tailored bike insurance advice and renewal assistance by filling out the form provided on this page.
FAQs
-
How do I check if my NCB is applied correctly?
Verify the NCB percentage mentioned in your renewal quote or policy schedule against your previous policy records.
-
Can I transfer my NCB when changing insurers?
Yes, you need to request an NCB certificate from your old insurer to carry it forward to your new policy.
-
What happens if I forget to select my NCB during renewal?
You may lose the discount, so always confirm your NCB percentage while renewing online or offline.
-
Is NCB available if I make a small claim?
Even a small claim can reset your NCB to zero, unless you have an NCB protection add-on.
-
Can insurers reject my NCB claim if I declare it incorrectly?
Insurers can cross-check your claim history and adjust or cancel your NCB if it is misreported.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.