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Understand No Claim Bonus in Health Insurance

Updated On Oct 22, 2020

No Claim Bonus in Health Insurance

Do you know that not claiming any reimbursement from your health insurance company can earn you significant returns? No claim bonus or NCB in health insurance is a reward that your insurance company would offer after you have successfully completed a claim-free year. It is the bonus money added to your sum insured for not filing a claim on your health insurance policy for a particular year.

In the following paragraphs, we will discuss the benefits of no claim bonus and how it works.

Types of No Claim Bonus

Primarily, there are two kinds of no claim bonus your health insurance company can offer, which include -

1. Cumulative Bonus:  A cumulative no claim bonus is gained when your coverage amount has increased, yet the total premium amount remains unchanged after completing a claim-free year. In other words, the coverage amount keeps on increasing with every claim-free year achieved.

2. Discount on Premium:  In this type, the premium amount decreases up to a certain percentage for every claim-free year, though the coverage amount remains unchanged. In short, your insurer would offer you a certain discount on your premium amount in the upcoming year after completing a claim-free year. But your coverage amount remains the same.

Among the above two types, the cumulative no claim bonus is more convenient for policyholders and is provided by many insurance companies.

How Does No Claim in Health Insurance Work?

Health insurance providers offer financial support to families by reimbursing the hospital expenses. At times, you may not need to make a claim at all simply because you have managed to stay healthy and fit.

In that case, your insurer would add a bonus amount to the sum insured as per the terms and conditions of your plan. The more the number of claim-free years you can earn successfully, the higher will be the benefits added.

The features of no claim bonus on a medical insurance policy are -

  • Your insurer would offer 10% extra on your sum insured for not claiming in the first year.
  • NCB is an incentive added to your sum insured, and it will keep on accumulating for each claim-free year.
  • For family floater plans, every member covered under the policy would be entitled to the no claim bonus benefits.

What are the Benefits of No Claim Bonus?

The number of ways a no claim bonus can be beneficial for health insurance policyholders are -

  • Sum Insured Increases:  Healthcare costs are rising every day and you need adequate financial backup to help manage such high expenses. No claim bonus would be an added advantage over your sum insured, allowing you to save big. You can avail a higher sum insured by achieving one or more claim-free years.
  • Transferable NCB: You can easily transfer no claim bonus during insurance policy portability. In other words, if you wish to switch from one insurance company to another, all the no claim bonus points earned will be transferred to your new plan.
  • Maximum Coverage: No claim bonus ensures the maximum coverage since the sum insured won’t be less than the original value, no matter how many times you make a claim. You will be eligible for making claims on both your basic as well as your NCB amount.
  • Financial Cushion: No claim bonus means an increased coverage, which further offers a financial cushion for you and/or your family. It protects you in times of monetary crisis and during a medical emergency.
  • Incentives for Staying Healthy: No claim bonus offers handsome benefits to all policyholders, which encourages them to stay healthy so that they can gain more claim-free years.


To receive the highest no claim bonus benefits, you must ensure to stay healthy and follow all the precautionary measures, especially in times of COVID-19 crisis. Moreover, following a balanced diet and exercising regularly are some steps to maintain sound physical and mental health.

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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.

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