Insured Declared Value (IDV) and No Claim Bonus (NCB) are vital in determining your two-wheeler insurance policy’s premium and coverage. Thus, once you understand these key terms, it can make a lot of difference regarding bike insurance renewals.
Identify why IDV and NCB are essential and how they impact your two-wheeler insurance renewal.
What is IDV in two-wheeler insurance?
The monthly expense of your bike insurance premium is directly proportional to the Insured Declared Value. It is the maximum amount an automotive insurance company will pay a policyholder when filing a claim.
The insurance provider proposes this sum, which is equal to the vehicle’s market value, and it changes at the stage when the policy is renewed. If your two-wheeler has been declared a write-off, your insurance company will pay you the actual value of your two-wheeler as per the IDV of the two-wheeler.
While renewing online bike insurance, try to get an IDV value that is cheap enough but effective enough to protect the bike. Incorrect IDV values can lead to either overpayment or insufficient protection.
Determination and calculation of IDV
This is how insurance providers determine the IDV of your bike:
- The amount of depreciation reduces the manufacturer’s quoted selling price.
- The price of non-factory fitted items is estimated separately.
All these aspects play a large role in your bike insurance premium, and this information will enable you to get a bike insurance quote.
The amount of IDV in bike insurance is fixed whenever the insurance is purchased or renewed. The total assured amount is calculated using the two-wheeler’s Insured Declared Value as specified by the manufacturer, after deducting depreciation on its components.
With the help of a bike insurance calculator or two-wheeler vehicle insurance premium calculator, you can easily calculate the IDV of your bike or premium charges. If your two-wheeler is over five years old or the model is no longer in production, you, as the insured, and the vehicle insurance company can agree on the Insured Declared Value.
Why does IDV matter in two-wheeler insurance renewal?
You might notice changes in your premium when renewing your two-wheeler insurance online. This is primarily due to the recalculated IDV. A low IDV means paying fewer premiums and being paid less in the event of an accident or theft. On the other hand, excessively determined IDV causes higher premiums without any extra added values.
The bike value calculator determines your IDV by considering your bike’s age, make, model, and depreciation. For a brand-new bike, the IDV equals the ex-showroom price.
What is NCB in bike insurance?
A no-claim bonus, or NCB, discounts your bike insurance premium for each claim-free year. It accumulates each year, and the discount is determined by the total amount of claim-free years. Insured members with a solid driving record can be offered up to a 50% no-claim bonus depending on their age, sex, and occupation, among other factors.
You can use a two-wheeler insurance calculator to see how your NCB affects the premium. Keeping track of your NCB makes sure you maximise this benefit during renewals.
NCB starts at 20% after the first claim-free year and increases incrementally to a maximum of 50% over five years. However, making a claim resets your NCB to zero. To preserve your NCB, consider paying for minor repairs out of pocket instead of filing a claim. This approach ensures long-term savings and reduced premiums.
What is the connection between IDV and NCB in bike insurance?
Both IDV and NCB significantly influence your two-wheeler insurance premium calculator results. While IDV determines the bike’s insured value, NCB reduces the premium based on your claim history. Together, they offer a balance between cost and coverage in bike insurance renewal online.
When renewing your two-wheeler insurance online, consider these factors:
- Choose an appropriate IDV for your bike.
- Maintain a claim-free record to increase your NCB.
- Use tools like the bike insurance calculator to compare premium options.
- Maintain timely renewals to avoid losing NCB benefits.
Differences between IDV and NCB
The table below shows the key differences between IDV and NCB in bike insurance:
| Parameter | IDV | NCB |
| Goal | Defines the maximum amount the insurer will pay if the bike is stolen or lost. | It exempts you from paying your premium or offers you a percentage off your premium if you do not claim it within the period of your insurance. |
| Effect on Policy | A greater IDV guarantees better coverage in the event of irreparable damage or theft, but it also raises the premium. | When the policy is renewed, NCB results in a lower premium, which can help reduce the overall cost of insurance over time. |
| Calculation | Calculated using the market price of your bike adjusted for its age and depreciation. | Determined using your claims history and expressed as a percentage of the premium. |
How to check NCB in bike insurance?
Understanding how to check NCB in bike insurance is essential for seamless renewal. Follow these steps:
Step 1: Log in to your insurer’s portal.
Step 2: Enter your policy number.
Step 3: View your NCB status in the renewal section.
Most insurers offer an NCB certificate, which can be used to switch to another insurer during a two-wheeler insurance renewal. This certificate helps you retain your NCB benefits even when changing providers.
Tips for bike insurance renewal
Below are a few useful tips that will help you in your bike insurance renewal process:
- Review IDV: Use a bike or two-wheeler vehicle insurance premium calculator to set the right IDV.
- Preserve NCB: Avoid small claims to keep your no-claim bonus in bike insurance intact.
- Compare policies: A two-wheeler insurance premium calculator helps you to compare premiums offered by different two-wheeler insurance providers.
- Renew online: Renew your policy using online bike insurance for better deals.
- Check NCB transfer: When switching insurers, ensure your NCB is transferred to the new policy. This helps you retain your hard-earned bonus.
To properly use your bike insurance plan, it is important to comprehend what IDV and NCB are. These factors directly influence your premium and coverage during bike insurance renewal online.
Using tools like the bike insurance calculator, you can make informed decisions. By renewing your two-wheeler insurance online and maintaining a claim-free record, you get cost-effective and comprehensive coverage for your bike.
