No Claim Bonus or NCB is a reward that health insurance companies offer to the policyholders for not raising a claim during a policy tenure. So, for every claim-free year you are eligible to avail a no claim bonus, which in turn allows you to avail enhanced sum insured or a discount in premium for the next policy year.
Hence, it is better to choose a health plan that offers maximum NCB or cumulative bonus for claim-free years. Let us understand in detail about the NCB meaning in health insurance.
Policyholders receive a remunerative benefit as No Claim Bonus (NCB) offered by health insurance companies under their health plans. Thus, NCB is regarded as a reward that insurers offer to policyholders for every claim-free year.
If you earn an NCB for a claim-free policy year, you can get more coverage on your policy while paying the same premium or can lower your premium in the next policy year. Hence, NCB is a significant factor which should be considered while buying a health insurance policy.
Under the health insurance policies there are two types of NCB that policyholders can avail. They are:
This no claim bonus health insurance allows the policyholder to avail enhanced coverage amount or Sum Insured (SI) under the policy for a claim free year. So, in this case, the SI of the policy is increased up to a certain percentage, while the premium amount remains the same.
For example, if you have a health plan of INR 4 lakh sum insured and you earned an NCB of 5% offered by the insurer for each claim-free year. In that case, your sum insured will increase by 5% to INR 4.25 lakh with no addition in premium price. Similarly, it will keep increasing by 5% every year up to a particular percentage to allow you enhanced coverage. Though the premium amount remains unchanged.
This is another type of health insurance no-claim bonus where the premium amount while renewing your policy would be lowered by a certain percentage for each claim-free year. In this case, there won’t be any changes in the sum insured or coverage of your health plan.
Let’s take an example, imagine you have bought a health insurance plan with INR 4 lakh sum insured for a yearly premium of INR 10,000. Now, your insurer allows a 5% discount on renewal for each claim-free year. Hence, you can avail a 5% discount on the premium that is INR 500 for your next renewal and pay INR 9,500 as the premium. Similarly, you can lower the premium with more claim free years up to a certain maximum amount, while the SI remains the same.
There are various reasons which make an NCB beneficial for the policyholders:
NCB allows the policyholder to enjoy increased sum insured for a claim-free year under cumulative bonus. However, this increase can be enjoyed up to a certain limit only. Most health insurance companies allow the sum insured to be increased up to 50% - 100% of the original SI. Also, with the varying terms and conditions of the health insurance companies, these policies might vary too. So, it is important to go through the policy documents well to know the exact limit.
For example, if your insurer allows a maximum cumulative bonus of 50% under your policy and your original sum insured is INR 2 lakh. In that case, you can enjoy a maximum added coverage of INR 1 lakh for your health insurance under cumulative bonus. So, your SI can go to a maximum of INR 3 lakh and not beyond that despite the number of claim-free years you have.
NCB or No claim bonus is a discount offered to both individual and family floater health insurance plans. In case of the individual plan, the coverage is received by the policyholder. And in case of family floater policies, the coverage is spread across all the members of the family.
Hence, regardless of an Individual or a family-floater health insurance plan, the NCB benefit can be enjoyed if the policyholder does not raise a claim during a policy year.
No. it is not necessary that every health insurance policy in India will offer an NCB benefit. There are plans that do not provide NCB benefit but they might have their unique terms and conditions. Hence, it is necessary to go through the policy documents of your health plan thoroughly while buying a policy and to understand the NCB clause well.
Here are some insurance companies offering better NCB benefits:
|Top health plans in India||NCB Minimum (for each claim-free year)||NCB Maximum (up to)|
|Care Care Plus||50%||200%|
|Niva Bupa ReAssure||50%||100%|
|HDFC Ergo Optima Restore||50%||100%|
|Digit Insurance Smart Option||10%||50%|
|ICICI LOMBARD iHealth Plus||10%||50%|
Looking at the high cost of healthcare treatment in the present times, it is really tough for the common man to get good medical treatment at reasonable expenses. Hence, NCB or No claim bonus is regarded as a lucrative way to increase policy coverage and safeguard the health of your loved ones. You can use the no claim bonus calculator to estimate the maximum NCB benefit that you can earn under your health insurance.
Yes, it might stay intact. However, there might be limitations attached to it as per the terms and conditions of the policy.
If you do not renew your plan, the plan will be deactivated and your NCB benefit will cease to exist.
You can buy the no claim bonus add-on to enhance the percentage of NCB under your policy. However, you will have to pay an extra premium amount for this add-on.
This actually depends on the preference of people. Some might prefer availing a discount on the premium and there are others who would like to enhance their sum insured or health coverage.
NCB means No Claim Bonus in insurance.
* Rs. 245/month is the starting price for a 5 lac health insurance for an 25-year-old male, with no pre-existing diseases.
*! Rs. 334/month is the starting price for a 10 lac health insurance for an 25-year-old male, with no pre-existing diseases.
*@ Rs. 12/day is the starting price for a 5 lac family health insurance for an 25-year-old male and 22-year-old female, with no pre-existing diseases.
*# Rs. 12/day is the starting price for a 5 lac health insurance for an 25-year-old male, with no pre-existing diseases.
*$ Rs. 600/month is the starting price for a 20 lac health insurance for an 25-year-old male, with no pre-existing diseases.
*^ Rs. 12/day is the starting price for a health insurance that covers coronavirus for an 25-year-old male, with no pre-existing diseases.