No-Claim Bonus in Health Insurance
A No Claim Bonus (NCB) is a reward from your health insurer at the end of every claim-free policy year. Buying a health policy with a good no-claim bonus can help maximize your sum insured amount each year. When buying health insurance, do not overlook the NCB.
Read more to understand why it is important.
Key Takeaways
- No-claim bonus helps you maximize your sum insured benefits after every claim-free year.
- NCB can reduce the overall renewal cost of your health policy and offers many more benefits.
- Not all health policies in India offer NCB, which is why it is important to read policy terms.
Expert Insights
Most insurers in India give at least a 5% no-claim bonus to reward their policyholders for every claim-free year. The percentage varies among insurers. For your easy understanding, let’s give you a simple representation. Say you have a health policy with a coverage amount of ₹5 Lakhs, and the insurer provides 5% NCB. Then:
- Year 1 - Policy Bought - Coverage amount ₹5 Lakhs
- Year 2 - No claims - 5% Bonus - Coverage amount ₹5.25 Lakhs
- Year 3 - No claims - 5% Bonus - Coverage amount ₹5.5 Lakhs
What Is No Claim Bonus In Health Insurance?
Simply put, a health insurance no-claim bonus is the amount rewarded for maintaining good health. After completing a claim-free health insurance year, the bonus amount is added to your sum insured on renewal.
This NCB increase in your sum insured provides additional financial protection, so buy a health insurance policy after examining the claim bonus in the health policy.
Best Health Insurance In India With the Highest No-claim Bonus
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Care Supreme
Offers built-in cumulative and cumulative bonus super offering up to a 500% increase in coverage in 5 consecutive years.
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HDFC Optima Secure
100% increase in the sum insured post 2nd-year renewals irrespective of any health claims made by you.
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Niva Bupa ReAssure 2.0
Offers a no-claim bonus maximum of up to 500%.
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Aditya Birla Activ One NXT
Offers cumulative bonus as health returns, allowing individuals to earn their health insurance premiums up to 100%.
Health Insurance No Claim Bonus: How Does It Work?
Let us understand no claim bonus in health insurance with a case study.
Two individuals, Mr. A and Mr. B, purchased a family floater health policy:
| Parameters | Mr. A | Mr. B |
| Sum Insured (In Rs.) | 10 Lakh | 10 Lakh |
| Policy Tenure | 1 Year | 1 Year |
| No claim Bonus | 10% Each claim-free year | 20% Each claim free year |
Both of them spent a claim-free policy year, giving them both a no claim bonus at the time of renewal. This is how it benefited them individually:
| Mr. A | Mr. B |
|
Sum Insured increase after NCB 10 Lakh + 10% No claim bonus after 1 year = 11 Lakh (New SI) |
Sum Insured increase after NCB 10 Lakh + 20% No claim bonus after 1 Year = 12 Lakh (New SI) |
Mr. B gained a higher increase in the Sum Insured at renewal because his health policy offered a higher no-claim bonus.
Points to remember: NCB percentage varies from insurer to insurer.
No Claim Bonus Types
Find out the types of no claim bonus offered by insurance companies in India explained below:
| Discounts on Premiums | Increase In Sum Insured |
| This type of NCB in health insurance decreases your premium by a certain percentage (differs from insurer to insurer) after every claim-free year. However, despite premiums decreasing at the time of renewal, your sum insured stays the same. | This type of no-claim bonus benefit increases your sum insured by a certain percentage (differs from insurance company to company) for each claim-free year. However, your premium amount will stay the same. |
Health Insurance No Claim Bonus: Benefits
NCB in health insurance is beneficial in more than one way; let us find out how:
- Maximizes your sum insured benefit by offering additional financial coverage, helping you in times of medical emergencies.
- Reduces the overall cost of renewing your medical policy.
- The benefit of a no-claim bonus in health insurance motivates individuals to stay healthy and spend a claim-free policy year.
- No claim bonus is transferable, meaning your accumulated bonus will be transferred at the time of policy portability.
No Claim Bonus In Health Insurance: Key Purchase Parameter
An NCB in health insurance motivates individuals to maintain a healthy lifestyle. This helps you spend a stress-free life and reap financial rewards from your insurer. A no-claim bonus in your health policy will either increase your sum insured or reduce your overall premium costs during renewal.
To know about no-claim bonus health insurance or any other benefits of health policies, you can schedule an appointment with our insurance experts today.
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