No Claim Bonus in Health Insurance
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What is No Claim Bonus in Health Insurance?
The health insurance no-claim bonus provides cumulative benefits to the policyholders. The policy sum assured is increased by around 10% for every claim-free year. This additional amount gets accumulated every year and offers higher insurance coverage to the policyholders. But this increase is subject to an upper limit of 50% of the original sum assured.
Note: NCB is only applicable for group medical insurance policy not Individual health insurance policy
When is a No Claim Bonus Provided in a Health Insurance Plan?
The following conditions are applicable in respect of the no-claim bonus in health insurance:
The benefits of NCB are not lost if a policyholder makes a lower claim during the year. The bonus gets deducted in proportion to their claim size.
The accumulated benefits of NCB can be transferred to a new health insurance plan if the policyholders decide to shift from one insurance provider to another.
If the policyholders make low or no claims, they can be offered a discount on the insurance premium for the subsequent year.
Types of No Claim Bonus in Medical Insurance
The policyholder who does not make any claim during the year is rewarded with higher insurance coverage at the time of renewal of the policy.
The benefit of a higher sum insured can be enjoyed by a policyholder without paying any extra premium.
Discount on Premium
The policyholder who does not make any claim during the year is rewarded with a discount on the premium payable at the time of renewal of the policy. The premium amount is reduced by a specified percentage, but the insured remains the same.
How is a No Claim Bonus Beneficial for the Insured?
Higher Insurance Coverage
The no-claim bonus feature offers the benefit of a higher sum insured at no additional cost to the policyholders. It helps you to comfortably manage rising medical expenses and access better healthcare facilities.
Reduction in Premium
If the insurer does not enhance the sum insured, you can enjoy cost savings due to lower premiums for the same coverage.
A no-claim bonus helps to provide better financial protection to individuals suffering from chronic diseases and during times of medical emergencies .
The accumulated benefits of NCB can be transferred if a policyholder decides to shift to another insurance provider.
The availability of a no-claim bonus provides an incentive to the policyholders and their family members to stay fit & healthy.
Features of NCB Health Insurance
The benefit of a no-claim bonus is available only if the policyholder does not file any claims during the previous period.
The NCB is not offered by all health insurance policies. The health insurance plans that offer this benefit can have their terms & conditions.
The policyholder gets an NCB of around 10% for every claim-free year. It increases the sum insured limit at the time of renewing the policy. But the total increase is subject to a maximum limit of 50% of the original sum insured.
The NCB benefits shall continue to remain in force even if the policyholder decides to switch from one insurance company to another.
The no-claim bonus amount can be utilized by any family member in a family floater policy.
The policy must be renewed before the expiry date to become eligible for a no-claim bonus benefit.
How to Claim the No Claim Bonus in Health Insurance?
Check your health insurance plan for details regarding NCB.
Ensure that you are eligible to claim the NCB (by not making any claims during the policy tenure)
Get in touch with your health insurance provider for necessary support & guidance.
Submit the required documents that include your identity proof and proof of no claims during the policy period.
Fill up the NCB claim form and submit it (along with the documents) to your insurance provider.
After successful verification & processing, you will receive the NCB benefits such as enhanced insurance coverage or a discount on premiums.
Frequently Asked Questions on NCB in Health Insurance
To get the benefit of a no-claim bonus in health insurance, it is necessary for the new policyholders to complete one full claim-free year. The NCB benefit can be availed subsequently.
Your health insurance policy will lapse if you do not renew it before the expiry date. You do not get any No claim bonus benefits under the plan if you do not renew the policy on time. The accumulated NCB will cease to exist and shall not be available to the policyholders.
No. It’s not mandatory for insurers to offer a health insurance no-claim bonus. Please check and confirm whether the NCB benefits are available before you purchase the policy.
No. All the NCB benefits accumulated under your plan will remain intact even if you switch to another insurance company. But do check the terms & conditions of the policy before you make the switch.
Generally, the insurance provider will decide whether a particular plan will offer a higher sum insured or a discount on premiums. You can check the policy features and select a suitable plan that meets your requirements.
Disclaimer: The no-claim bonus (NCB) in health insurance may have limitations, exclusions, and other terms and conditions that may affect coverage. It is important to carefully review the policy wording before making any decision.