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No claim bonus in Health Insurance

No claim bonus in Health Insurance - (a)

The word “bonus” sounds very positive. However, it is questionable whether these three words – no, right, and bonus – together have a similar impact. The skepticism could be due to the presence of “no” and “complaints”. But there is nothing to worry about. No Claim Bonus (NCB) on health insurance simply means a bonus if no claims are made.

The no-claim bonus is very important to policyholders. The real benefits come in the long run. There are also different types of NCBs offered by health insurance companies in India. Read on to learn more about the health insurance no-claims bonus, its types, features, and benefits.

What is the No Claims Bonus (NCB) in health insurance?

The insurer does not offer the insured any compensation for health insurance claims under certain conditions. The main clause to benefit from the premium without a claim is that the insured must not make any claims during the previous insurance period.

The no-claim bonus is, in a sense, a reward for the insured for remaining health conscious and not filing a claim. The insurer is not afraid to reward the policyholder for customer loyalty. In addition, it is much more practical for insurers to offer an uncompensated bonus than it is to settle medical insurance claims, which can amount to thousands of rupees.

Types of No Claim Bonus In health insurance:

Offering a no-claims bonus is common in the health insurance industry. Both public and private insurance companies offer NCB to eligible policyholders. However, there is a difference in the type of PNE that is offered.

There are two types of bonus claims offered by insurance companies in India. Accumulated profit and discount bonus. The following is an overview of the two types of PNE.

 Discount on Premium:

As the name suggests, this type of no-claim bonus offers a discount on the premium payable when the policy is renewed. This allows insured persons to continue their health insurance plans at a reduced price.

Cumulative profit:

This type of no-claim bonus offers no discount but increases the amount insured. Therefore, policyholders are rewarded with an increase in the sum insured if the contract is extended for failure to submit a claim.

How does the no-claim bonus work?

How the no-claim bonus for health insurance works depends on the type of PNE offered by the insurance company. Here is a basic explanation of how the no-claim bonus is calculated.

Characteristics of the voucher without a claim in health insurance:

  • On average, the no compensation bonus offered by Indian insurance companies is between 5 and 20%.
  • If you want to switch to another health insurance company, your accumulated bonus remains active without entitlement.
  • In the case of a family floating policy, no family member can claim a claim bonus amount on the sum insured.


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