Ever considered how No Claim Bonus (NCB) functions in long-term bike Insurance? If you are among the individuals who think it’s difficult to remember insurance renewal dates, probably you have purchased an annual insurance policy.
People tend to forget the insurance renewal dates as they are engaged with their busy work schedule calendars, connections, companions, and other greater obligations. However, not renewing the insurance policy on time could be a major risk that you must avoid. With a multi year bike insurance policy, this risk can be avoided.
Why Do You Need A Multi Year Insurance Policy
The best thing about a long-term insurance is that you pay the premium only once for three years and get your vehicle covered for continues three years without needing to renew your insurance every year.
How Does A No Claim Bonus Work In A Multi-Year Insurance Policy
As you most likely are aware, No-Claim Bonus is a discount on premium that insurers offer policyholders if they have not made any claims on their policies in the preceding years.
The following is the year by year structure of the NCB:
|NCB Structure For One-Year Policies||NCB Earned|
|After 1 claim free year||20%|
|After 2 claim free year||25%|
|After 3 claim free year||35%|
|After 4 claim free year||45%|
|After 5 claim free year||50%|
If you make a single claim in any of these years, the NCB will drops to a 0% if you have an annual insurance policy.
In a multiyear bike insurance, the No-Claim Bonus can be availed till the validity of the policy regardless of whether a claim was made during the tenure of the policy. This implies that if you receive a NCB of 25%, you can avail it for all the three years.
To Be Noted
Every insurance agency have their own distinctive NCB structure that can change as far as a multiyear bike insurance is concerned. Along these lines, you should communicate your coverage requirements to the insurer and negotiate accordingly. You may also visit various third-party neutral insurance websites to compare the available products and choose the one that offers you maximum benefits.
With a multiyear policy, whether you file a claim or not, you are qualified to get NCB when you renew your policy. In fact, you might be able to enjoy higher discounts in comparison to a single year policy.