No Claim Bonus in Health Insurance (NCB Insurance)

Due to the rising medical inflation, there is a need for people to have sufficient health insurance cover that would protect them from unforeseen medical emergencies. These health insurance plans not only offer protection to the policyholders from healthcare expenses but also give discounts to them in the form of a no-claim bonus for every claim-free year. In case, one is planning to form a health insurance plan, then one should consider NCB as an important factor as it helps you in getting enhanced coverage and extra protection to protect from medical expenditure.

Let us know more about the No Claim Bonus feature and how it is beneficial for the policyholders.

What is the meaning of No Claim Bonus in Health Insurance?

No claim bonus is considered to be a very important aspect related to health insurance. It is provided by the insurance company as a reward to the policyholder for not raising any claim during the policy duration, whereas certain insurance companies also provide a rise in the sum assured as an alternative to a claim bonus. Insurance companies having no other option than a no-claim bonus provide a discount on the premium at the time of renewal of a health insurance plan.

When no claims are made by the policyholder during the policy tenure, then the insurance company offers no claim bonus to the policyholder. Simply speaking, it is a count of years wherein no claim has been filed by a policyholder. Also, make sure to get your health insurance policy renewed on time, to avail the benefit of the accumulated bonus.

For example: Mr. Anand Mathur has purchased a health insurance plan with a sum insured of Rs. 5 Lakh, which cost him Rs 5,000. As there was no claim raised by Mr. Anand during the policy tenure, the insurance company gave him a discount of 10% as a reward. Therefore, to renew his health insurance plan, he is supposed to pay only Rs 4500 now ( wherein he saved Rs 500).

Types of No Claim Bonus Health Insurance

In health insurance, it is common for the insurance companies, (be it public sector companies or private sector companies) to offer No claim bonuses to all the eligible policyholders. However, the type of no-claim bonus offered by companies is different. Generally, there are two types of NCB offered by health insurance companies in India. They are as follows:

• Cumulative Bonus

Under the Cumulative bonus, no discount is offered by the policyholder. However, an increase in the sum insured is offered by the insurance company to the policyholder. Therefore, at the time of renewal of the insurance policy, policyholders are given a reward in the form of an increased sum insured for not raising any claim during the policy tenure.

• Discount on Premium

As the name explains, this type of NCB offers the policyholder a rebate on the premium which is payable at the time of renewal of the health insurance policy. Therefore, policyholders can go on with their insurance plan but at a discounted rate.

Features of No Claim Bonus Health Insurance

Under health insurance, the features of no claim bonus are highlighted below:

• In India, the insurance companies on average offer a no-claim bonus in the range of 5% to 20%.
• In case you plan to port your insurance plan to a different insurance company, then your accumulated no-claim bonus will remain active.
• If you have opted for a health insurance plan on a family floater basis, then each member covered under the policy can avail of the benefit of a claim bonus.

Disclaimer: This article is issued in the general public interest and is meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive and should research further or consult an expert in this regard.