Is Your Health Insurer Withdrawing No Claim Bonus? Do This
Published On Dec 22, 2020 5:30 AM By Gunjan Anand
Health insurances render no claim bonus for health insurance if the insurer doesn’t make any claim for the policy year. Some companies offer the bonus during the policy tenure and some providers may increase the sum assured in the place of a no-claim bonus. This increase in the sum assured can increase their cover even up to 150% for the no-claim year. But to match with the increasing health care costs, and to tackle the high inflation rates, some health insurance companies are withdrawing this wonderful feature from the insurance policy.
Effects of Withdrawal of No Claim Bonus
By having health insurance with no claim bonus, it is possible to increase the sum assured for every single policy year, where no claim has been made. If the health insurer is withdrawing no claim bonus, then it will affect the insurer’s financial health.
- The policyholder has to pay the premium in full without any discounts.
- He will lose the benefit of accumulating his sum assured at the end of the policy period.
- His premiums that are paid will get wasted if he is not making any claims.
What to Do if the Health Insurer is Withdrawing No Claim Bonus?
The No-claim bonus is an excellent financial benefit that a person can get against their health insurance policy if no claims are made in the particular policy year. The benefits are rendered either in the form of discounted annual premiums or as an increase in the cumulative bonus. When the insurance providers withdraw the No claim bonus it leaves the customers in jeopardy. Here is what one can do to handle such conditions,
1.Switch to Another Policy
Experts suggest that the best way to handle the withdrawal of the no claim bonus clause is to discontinue the current plan and switch to another insurance policy that offers NCB from the same insurer. This is particularly beneficial if the insured is over the age of 50 years. Porting the policy is done only after thorough consideration of the pre-existing medical condition of the insured.
2. Switch to Another Insurance Company
The second option is to discontinue the policy and opt for a new one from a different health insurer. Before discontinuing the policy to another insurance company, you need to send a letter to the current insurer communicating the same at least 45 days before the date of renewal. Evaluate the merits and demerits of all the plans before making the switch, to get an additional sum insured for every no-claim year of the existing policy. This is however not a good idea for young insurers, as the new insurer can also withdraw this benefit in the future.
Understand No Claim Bonus in Health Insurance
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The best way to deal with a health insurer rendering no claim bonus is to search for other prospective plans and shift the policy. It is possible to transfer the policy from one insurer to another after a brief waiting period. The tenure of the waiting period differs between companies.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.