Buying a two-wheelers costs huge amount and therefore buying a two wheeler insurance becomes inevitable. A two wheeler insurance is a necessity for every bike/scooter considering the number of accidents, road conditions traffic sensibility, etc. A two wheeler insurance is a mandatory document that every vehicle owner should have according to the law of The Motor Vehicles Act, 1988. It protects you and the bike against a number of situation which may result in injuries, vehicle damage, third-party injuries, death, loss of body parts, etc. A bike insurance covers all the medical expense for the owner and the repair cost of the vehicle to a certain limit as mentioned in the policy document. Apart from providing for personal needs, it also provides cover for theft, third-party injury, natural calamities like storm, fire, floods, etc. and man-made calamities like burglary, riots, protests, terrorists’ attacks, etc. So buying a bike insurance is not just to avoid fines, but it is to be safe and secured in unfortunate times.
Any kind of insurance policy has an expiry date and it has to be renewed at regular intervals to continue enjoying its benefits. In two wheeler insurance a policy buyer can opt for one of the two terms i.e. annual and long-term policy. The benefits for annual policy remains standard i.e. one year protection for bike and owner against all mentioned clauses in the policy. On renewal the policyholder will be rewarded with discounts if the policy is not claimed in that particular term. The downside to an annual policy is, if a policy holder makes a claim albeit small or big, the No-claim bonus will freeze and no discounts will be given on renewal of the policy and in-turn will lead to higher renewal premium amount. If you choose a long-term policy, the rewards and benefits are much higher and the risk of losing the NCB is very less.
A no-claim bonus is a discount given to the owner of the bike, for the quality driving and for not claiming the insurance in a policy year. No-claim bonus can be availed while renewing the policy for subsequent years. This reward is given in form of discount percentage on renewal premium amount. The discount percentage will vary for every policy year, the minimum is 20% and maximum is 50% and it can be carried forward up to 5 years. If you want to utilize the NCB for every renewal, you can do so.
|No-claim bonus percentage||Policy year|
|20%||For 1 claim free year|
|25%||For 2 claim free years|
|35%||For 3 claim free years|
|45%||For 4 claim free years|
|50%||For 5 claim free years|
Every insurer has different regulations concerning no-claim bonus. While the above is the standard format which is followed by most insurance companies, few insurers provide incremental no-claim bonus discount wherein if the policy holder makes no claim, he/she gets 40% discount, 1 claim 30%, 2 claim 20% and more than two-claims zero. You can enquire more about this with the insurer if the company provides this facility.
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