A no claim bonus, as the name suggests, is a bonus amount the insurance company gives you for maintaining a good claim free record with them. Please note, most companies do offer no-claim bonus, but you should ask your insurance company upfront when purchasing a policy.

You can accumulate your no-claim bonus over the years if you do not make any claim on your insurance policy.

With a no-claims bonus over the years, you are likely to receive excellent discounts on your premiums. While many insurance companies allow you to earn a no-claim bonus on your vehicle for several years, a few of them have started setting a limit of five years for earning the no-claim bonus.

Interestingly, you can shift your no-claim bonus when you replace your existing two-wheeler (bike or scooter) with a new one. You can shift your insurance policy from your existing two-wheeler to the new one by obtaining a no-claims certificate from your insurer.

This no-claims certificate can be used to negotiate a better insurance price when you end up purchasing your new vehicle.