A scooty insurance policy protects you from financial and legal obligations against any unprecedented incident that may lead to enormous expenditures. When you timely pay the premium amount of your scooty in insurance, you can avail the insurance benefits in case of a mishap caused by your scooty.
In addition, several factors affect the premium of your scooty insurance, and No-Claim Bonus (NCB) plays a significant role. In this blog, we will discuss everything that you must understand about No-Claim Bonus.
What is a No-Claim Bonus?
A No-Claim Bonus is a discount or savings on the premium amount insurance companies, like ACKO General Insurance, offer you when you have not taken any insurance claim during the tenure of your existing plan. As insurance premiums tend to increase due to inflation, rising repair costs and other factors, you can avail the NCB discount if you are eligible and reduce the premium amount to increase the insured sum amount.
How Does No-Claim Bonus Work?
The No-Claim Bonus is a discount ranging between a minimum of 20% and a maximum of 50%, with an increase in every consecutive claim-free year. The accumulated NCB can help you reduce the premium amount when you renew your existing scooty insurance.
However, if you file a claim and the insurance company financially settles the claim, the NCB will fall to zero. In such a scenario, you must pay the full premium amount at the time of scooty insurance renewal. Furthermore, the NCB is available in a standalone own-damage or comprehensive insurance plan, not for a third-party insurance plan.
How is No-Claim Benefit Calculated in a Scooty Insurance?
The No-Claim Bonus comes into effect when you renew your comprehensive scooty insurance for the first time. In addition, the NCB increases 5% to 10% during each renewal. Here is a table depicting the calculation of the NCB discount you can get when renewing your existing scooty insurance plan:
| Number of Claim Free Years | Percentage of NCB Discount |
| First Claim Free Year | 20% |
| Second Claim Free Year | 25% |
| Third Claim Free Year | 35% |
| Fourth Claim Free Year | 45% |
| Fifth Claim Free Year | 50% |
What are the Benefits of No-Claim Bonus in Scooty Insurance?
The following are some key benefits of a no-claim bonus in scooty insurance:
- It offers a discount on the premium amount of scooty insurance from a minimum of 20% to a maximum of 50% if you have not filed a single claim during the policy tenure.
- The NCB is granted to you for using this facility to avail premium discount while renewing your existing insurance. Hence, you can even get the NCB benefits if you sell your scooty or change your insurer.
- You can easily transfer the NCB benefit from one insurer to another or from one scooty to another if you want to change your vehicle or insurer.
- The NCB acts as a reward for not utilising the insurance amount during the policy tenure, even after paying the periodical premium.
How to Transfer No-Claim Bonus to a New Scooty Insurance?
You can follow these simple steps to transfer the No-Claim Bonus to a new scooty or insurer:
Step 1: Inform your current insurance provider that you want to change the scooty insurance plan to a new one.
Step 2: Ask them to give you an NCB transfer certificate and hand it to the new insurance company.
Step 3: Submit Form 29 and Form 30 (Buyer and Seller Agreement Forms).
Step 4: Pay the premium of the new scooty insurance plan at a discounted rate.
Things to Remember About No-Claim Bonus in a Scooty Insurance
Here are a few things you must remember about NCB in a scooty insurance plan:
- Once you file an insurance claim for your scooty, the NCB becomes zero.
- The NCB is valid up to 90 days after the expiry of the existing scooty insurance plan.
- If you do not renew your scooty insurance plan within the 90-day grace period, you must apply for a new scooty insurance plan with zero benefits.
- Once you cancel the scooty insurance plan before the tenure ends, you cannot utilise the advantage of the NCB.
- You cannot share the No-Claim Bonus discount between two different scooty insurance policies.
Final Words
The No-Claim Bonus is a key feature in a scooty insurance plan, as it helps you reduce the premium of a comprehensive or standalone damage insurance plan. Hence, if you do not file a claim within the policy tenure, you can enjoy the benefits of an NCB discount and save money on premiums.
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