A motorized bicycle is probably gong to require a drivers license, registration and insurance. This is generally not the case with an electric bicycle.
While renewing motor insurance policies, No Claim Bonus (NCB) is a reward to the policyholder for not making a claim in the preceding years. NCB is a discount ranging from 20-50% on the premium payable.
No Claim Bonus will only be allowed provided the policy is renewed within 90 days of the expiry date of the previous policy. If a claim is made under Section I Loss or Damage to the Vehicle Insured the No Claim Bonus will not get affected during the course of the long term.
A 20% NCB can be claimed on the first renewal and it increases with every claim free year up to a maximum of 50% at the end of 5 claim free years. So generally speaking, policyholders are entitled to a maximum NCB of 50% and this discount will not increase even if no claim is made in future years.
Sunset clause is an exception to this general rule of 50%.
It is only beneficial to the policy holders who had renewed their policies between July 1, 2002 and June 30, 2003 who might have accumulated an NCB of 55% or 65%, as per the tariff prevailing before July 1, 2002. Their entitlement of such higher percentage of NCB is still protected for all subsequent renewals till a claim arises under the Policy.
Which means, they are allowed to use and carry forward this higher NCB of 55% or 65% until there is a claim under their policy. if there is a claim, the NCB will reduce to zero and after that the current rules of NCB will be applied at the time of renewals for them too.
The exact definition differs by state. It is important to check with your individual sate to determine your exact laws.
Acko provides various car insurance plans with up to 98% claim settlement percentage. Also, Acko car insurance renewal process is easy and quick. So, renew your insurance right away and continue to live a hassle-free life in terms of your car and its insurance.
Companies like Acko car insurance renewal have a simple process. You can renew your insurance in just a few steps and avoid any kind of trouble that might happen.
So, at least renew your third-party insurance to avoid any legal actions.
No-claim bonus lapse
If you do not renew your insurance on time, then your no-claim bonus will lapse and you will not be able to benefit from it at the time of renewal. You can get huge discounts on your premium if you have not made any claim in the previous year, so to avail of those benefits, you need to renew your insurance timely.