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No Claim Bonus in Health Insurance

Features and Benefits of NCB in Health Insurance


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The rising medical inflation hints at the need for having adequate health insurance cover that would save you in times of medical emergencies. Health insurance policies will not only cover you for the medical expenses you incur but also reward you for spending a claim-free year under the No Claim Bonus (NCB) feature. If you are opting for a health policy, you should consider this feature as a key factor, as it helps you get enhanced coverage and additional protection to protect from healthcare expenses.

Let us understand more about the No Claim Bonus and how it benefits a policyholder.  

Table of Content:

What is No Claim Bonus in Health Insurance?

A No Claim Bonus (NCB) in health insurance refers to the bonus coverage added to the sum insured provided by a health insurance company for every claim-free policy year. It is a reward that we, at Care Health Insurance, give to the policyholders for maintaining good health and not filing a claim during the policy year. It is a fantastic benefit that policyholders can enjoy on their health insurance policies.

The policyholder is entitled to cumulative benefit under no-claim bonus, wherein the sum insured amount increases by a specified percentage in every claim-free year. There is a yearly increase of 10 percent in the sum insured. This way, the coverage amount gets accumulated and offers an additional financial safety net for the policyholder. There is a maximum limit to the increase of up to 50% of the original sum insured.

How does No Claim Bonus (NCB) Works?

The ultimate aim of medical insurance plans is to provide financial comfort to a family, considering that medical treatment is getting expensive as each year passes. The hospital bills one incurs are either reimbursed or settled through a cashless medical insurance claim facility. Sometimes, it might happen that policyholders do not need to make a claim. The reason could be that they managed to stay healthy that saved them from hospital expenses. So, in this case, they are entitled to a no-claim bonus under their health insurance plan.

Example: Let us assume a person opted for a health insurance plan with a sum insured of Rs 10 lakh. 
Under the NCB, there is a 10% increase in sum insured per policy year in case of no claim. The maximum limit on the increase is up to 50% of the sum insured.

Claim-Free Year Sum Insured
1st claim-free year Rs 11 lakh
2nd claim-free year Rs 12 lakh 10 Thousand
3rd claim-free year Rs 13 lakh 31 Thousand

What are the Types of No Claim Bonus?

Cumulative Bonus: For every year you enjoy un-interrupted good health, your NCB Super keeps adding up. It is the extension of the no claim bonus benefit. For every claim-free year, you will receive an increase of 10% in your sum insured. However, in any case, the NCB will not exceed 50% of the sum insured.

Example: You have a health insurance policy that gives you a sum insured of Rs 5 lakh, and we provide a 10% no claim bonus for each claim-free year. In the first year, if you do not file any health insurance claims, your sum insured would increase by Rs 50,000. Your total sum insured would be Rs. 5,50,000 for the same premium cost. In the same way, for the subsequent claim-free years, your coverage amount would be Rs 6 lakh, and so on. That means, in the third year, you can claim up to Rs 6 lakh. 

Features of No Claim Bonus (NCB)

When you decide to buy a health insurance plan with no claim bonus cover, read the below features of NCB:

  • It is an incentive above the sum insured that will accumulate after every claim-free year.
  • If no claim is filed in the first year, you will get 10% extra on the sum insured.
  • In the case where you have chosen a family floater plan, all the members covered under the policy are entitled to no claim bonus.

Why No Claim Bonus is Beneficial to Policyholders

No claim bonus is a noteworthy feature of health insurance plans that benefits a policyholder in many ways:

  • Increase in sum insured: When there are huge medical expenses, your existing health policy may prove inadequate, given the steady rise in healthcare costs. The no claim bonus feature makes the policyholder eligible for an increase in sum insured, which is a saving grace. 
  • NCB is transferable: No Claim Bonus can be transferred easily during the portability. That is, the benefits accrued by the policyholders will be transferred if they opt to switch to their policy.
  • Financial safety net: The increased coverage provides an additional financial shield for a family’s savings in times of rising healthcare costs. It thus protects a family during critical situations like a medical emergency. 
  • Maximum coverage: It ensures maximum coverage as the sum insured does not go below the original value even after multiple claims. 
  • An incentive for staying healthy: No Claim Bonus encourages policyholders to remain hale and hearty and enjoy a claim-free year.

>> Also Read: Health Insurance Claim Settlement Ratio

No Claim Bonus in Care Health Insurance 

Care Health Insurance offers bonuses to the policyholders for spending a year without making any claim on their health insurance policy. The no-claim bonus (NCB) feature is an advantage as it entitles them to make huge savings. The NCB in health insurance is available as a cumulative bonus amount accumulated to the sum insured every year.

This way, the policyholders can enjoy additional coverage and get required support during medical emergencies to access quality treatment without any worry. As the healthcare costs in India are rising steadily, the NCB offered by us proves to be highly beneficial.

No claim bonus in health insurance is among the useful features of medical insurance policies, which should be considered by policy buyers since it saves on medical expenditures.


What Happens to No Claim Bonus in Health Insurance if I Don’t Renew My Policy?

Every health insurance policy has a definite tenure. One can opt for a longer tenure, say for two or three years. In such cases, the policyholders have the option to pay a one-time premium for all these years and save themselves from the hassles of renewing the policy annually. However, in the case where a policyholder fails to renew the policy before the expiry date, it will lapse.

In such an event, the policyholder will not receive the benefits that come with health policy renewal. That is, the accumulated coverage amount that comes under no claim bonus would not be available to the policyholders if they do not renew their policies on time.

What Happens to Health Insurance No Claim Bonus if I Switch from an Individual to a Family Floater Plan?

One of the advantages policyholders have under health insurance plans is the option to change their plan from individual to a family floater health insurance. By changing an individual policy to a family floater, the benefits accumulated in the previous health policy can be made available to other members of the family under the new policy. However, the sum insured amount or the percentage can vary, and it would depend on whether the plan was changed from individual to family floater or vice versa. Moreover, an increase in sum insured is also another vital factor taken into account.

Is the No Claim Bonus Transferable?

Yes, the no-claim bonus is easily transferable. A policyholder can transfer the no-claim bonus benefits accumulated from a particular health insurance plan to a new health insurance plan from another insurance company. It can be transferred at the time of the portability of a health insurance policy or policy renewal.

How to Claim No Claim Bonus in Health Insurance?

Medical inflation in our country has been rising every year at the double the rate of overall inflation. The costs of healthcare services are skyrocketing, and it will be difficult to bear the medical costs in the coming future. In such a grim situation, no claim bonus in health insurance can be beneficial, and you can avail no claim bonus as cumulative benefits in the form of a higher sum insured.

When is No Claim Bonus Offered in Health Insurance?

No claim bonus in health insurance is offered to the policyholder when renewing the health insurance policy. You will get a boost in your sum insured in the form of a no claim bonus super that cumulatively increases in value instead of the usual no claim bonus. 

No Claim Bonus in health insurance is usually applied under the following conditions:

  • If the policyholder spends a year without filing any claim, the NCB is credited automatically in subsequent policy year, as specified in the policy T&C.
  • Moreover, should the insured want to shift health insurance policy providers, then the no claim bonus that has accumulated for the previous health insurance policy can be transferred to the new health insurance policy.
  • The automatic recharge of the sum insured is not considered when calculating NCB.

In summary, a no claim bonus in health insurance is amongst the key features that you should consider before purchasing a policy. Health Insurance plans that offer substantial bonuses prove to be highly conducive to your needs when struggling with rising medical bills.

The current medical inflation is affecting the healthcare industry immensely. Choose our health insurance plans with no claim to enhance your health coverage, and sum insured. Therefore, if protection for your savings is the objective, then get the most out of your health insurance policy, stay fit, and avail of no claim bonus by spending a claim-free year.

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