Young and healthy? Find out which of these plans rewards you with lower premiums. Click here to check now!

What Is No Claim Bonus in Health Insurance?

Health insurance is usually seen as an expense you pay for but hope never to use. After all, no one wakes up wishing for a hospital visit just to “get value for money.” But here’s the good news—if you don’t make a claim in a policy year, your insurer actually rewards you for staying healthy.

This reward is called a no claim bonus in health insurance. Think of it as your insurer saying, “Thanks for not giving us extra paperwork this year.” The bonus can come in two ways: either by increasing your sum insured without raising your premium or by offering you a discount on your renewal premium. It’s like getting a health-conscious pat on the back, with financial benefits.

What is No Claim Bonus in Health Insurance?

A no claim bonus in health insurance (NCB) is an incentive that insurers give to policyholders who do not make any claims during the policy year. Instead of letting your premium money go unrewarded, insurers thank you by offering benefits at renewal. This bonus usually comes in one of two forms:

Increase in Sum Insured: Your coverage amount is enhanced without raising the premium. For example, if your policy sum insured is ₹5 lakh, it could be increased to ₹6 lakh or more after a claim-free year.
Discount on Renewal Premium: Some insurers lower your premium when you renew, meaning you pay less for the same coverage.

The idea is simple: you save money or gain higher coverage just by staying claim-free. NCB encourages policyholders to use insurance only for major needs, not minor doctor visits.

How Does No Claim Bonus Work?

The working of a no claim bonus in health insurance is straightforward but much impactful from the policyholder’s point of view. Let’s break it down with examples:

Hike in Sum Insured: Suppose you buy a health policy with a sum insured of ₹5 lakh. After completing one claim-free year, your insurer may increase the coverage by, say, 10%, taking it to ₹5.5 lakh. If you continue this streak for five years, the sum insured could grow significantly, sometimes up to 50 to 100% of the original coverage. So, in year five, your coverage might be ₹10 lakh while you still pay premiums for ₹5 lakh.
Discount in Renewal Premium: In another scenario, instead of boosting the coverage, insurers reduce your renewal premium. For example, if your yearly premium is ₹20,000, and you haven’t made a claim, the insurer may cut it down to ₹18,000 for the next year. This may go further down if you go another year without raising a claim, depending on your insurer’s policy details.

In both cases, NCB motivates you to avoid unnecessary claims, keeping your long-term benefits intact.

What is a No Claim Bonus Protection Cover?

A no claim bonus protection cover is an add-on feature you can purchase with your health insurance policy. This add-on is especially useful if you want to maintain your bonus while still using the policy when required. Normally, if you make a claim, even a small planned one like a doctor’s visit or any check-up, you lose your NCB benefits in the next renewal. With this add-on, however, your bonus remains safe even if you file a claim. It’s like having a safety net for your reward points.

For instance, if your policy offers a 10% increase in sum insured as NCB and you make a small claim of ₹10,000 during the year, the protection cover ensures that your bonus is not wiped out. You continue enjoying the enhanced sum insured or the renewal discount. The add-on premium adds a little extra cost but keeps your long-term benefits secure.

Conclusion

A no claim bonus in health insurance is one of those rare situations where doing nothing actually pays. By staying claim-free, you either enjoy a higher sum insured or a reduction in your renewal premium. Over time, this can significantly boost the value of your policy.

Adding a no claim bonus protection cover ensures that even small claims don’t erase your reward. While NCB shouldn’t be the only factor in choosing a health plan, it’s a smart feature to consider. Think of it as a healthy habit that not only safeguards your well-being but also makes your policy more rewarding year after year.

If you are shopping for health insurance plans, make sure you are weighing your options. Consider using Paybima, which provides you with an in-depth comparison and expert guidance during your purchase. In insurance, patience and a little homework really do pay off.

Young and healthy? Find out which of these plans rewards you with lower premiums. Click here to check now!

Author Bio

Paybima Team

Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 21 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Over to You

Health emergencies don’t come with a calendar invite. Whether you're planning for your own future or looking out for your parents, choosing the right health insurance plan can make all the difference. That’s where a deeper look at the fine print helps. When you compare Star Health’s Red Carpet Plan vs Care Health Enhance Plan, what you’re really doing is choosing the kind of financial backup you want in your corner.

The Star Health Red Carpet Plan is made with senior citizens in mind. With benefits like annual preventive check-ups, it helps you or your ageing parents get covered without the usual hassles. On the other hand, the Care Health Enhance Plan acts as a top-up cover, ideal if you already have a base health policy and want to increase your shield without increasing your premium by too much.

While health insurance takes care of medical needs, don’t forget to plan for life’s bigger what-ifs. A term Insurance policy, especially a 1 crore term insurance plan, can be the long-term security net your family needs. Health and life coverage go hand in hand. And when chosen right, they help you face the future with confidence, not chaos.

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