No Claim Bonus in Health Insurance?

Hey there! Are you planning to buy a Health Insurance Policy? Well, that is a great decision. But wait a minute, have you thought about what will happen to your policy if you don't make any claim? Aren't you worried that the money you pay for your premium will simply go down the drain?

But what if we tell you that you can still be rewarded for staying healthy, i.e. for not making any claims? Confused? Read along to find out more.

If you do not file for any claims during the year, the company provides you with perks, in the form of No Claim Bonus.

In today's time, most Health Insurance Companies are allowing their policyholders to enjoy the bonus amount that gets accumulated to the Sum Insured amount for every claim-free year. In simpler terms, if a policyholder does not make any claim within a policy year, the Insurer awards them with a benefit known as NCB or 'No Claim Bonus'.

Offering this benefit is a way through which Insurers encourage their consumers to stay healthy and file a claim only when it is necessary.

What is a No Claim Bonus?

No Claim Bonus in Health Insurance is a type of benefit offered by the insurance company to its policyholders for not making any claims in the policy period. It is calculated as a percentage, when these are added to the sum insured, the outcome will be an increased sum insured. The company gives it in the form of an incentive that encourages the client to maintain good health. A policyholder can save more money by accruing a larger No-Claim percentage the longer they go without filing any claims.

Types of No Claim Bonus in Health Insurance

Insurance companies mainly give the advantage of a No-Claim Bonus on their health insurances as:

1. Cumulative Benefit meaning Higher Sum Insured

   Under this type, the coverage amount is increased for having a claim-free year, and the premium amount remains the same. Let us understand this through an example:

   For example, Mr Anand has Health insurance of Rs. 10 Lakh and his Insurance company provides a 5% 'No Claim Bonus' for every claim-free year. Take a look at the below table to get an idea of how much benefit Mr Anand can claim after 3 consecutive claim-free years.

   Year	No Claim Bonus	Health Coverage Amount
   1st Year	---	Rs. 10 Lakh
   2nd Year	Rs. 50,000	Rs. 10.50 Lakh
   3rd Year	Rs. 50,000	Rs. 11 Lakh

   The above table showcases the increase of Health Coverage (Sum Insured) after every claim-free year. This means that in the 4th year if the need arises, Mr Anand can claim up to Rs 11,00,000, without paying any extra premiums.

2. Discount on Premiums

   Under this type, a policyholder is eligible to avail of Discounts on Premiums for every claim-free year. The premium amount decreases by a specific percentage, though the coverage amount remains the same. Let us understand this through an example:

   For example, Mr Anand has Health insurance of Rs. 10 Lakh for which he pays the premium of Rs. 25000 per year. His Insurance company offers a 10% discount on premiums as no Claim Bonus for every claim-free year.

   Thus, if Mr Anand does not make any Health Insurance claim in the first year, then at the time of renewal he would have to pay only Rs. 22,500.

   Both types of No-Claim Bonus ensure that you get better financial security during a medical emergency.

Is 'No Claim Bonus' available for both Individual & Family Floater Plans?

Under the Individual Plan, the cover is provided to one single individual. On the contrary, under Family Floater, the cover is provided to all the members included under the policy. The benefit of the No Claim Bonus is applicable under both the variants- Individual & Family Floater plans.

Is 'No Claim Bonus' available under all policies?

All Insurers provide the benefit of a 'No Claim Bonus'. However, it depends upon policy to a policy of each Insurance Company.

For example- Star Health has a wide array of plans, among which, Star Health Family Optima Care provides the Benefit of 'No Claim Bonus' & Star Health Senior Citizen Red Carpet does not offer 'No Claim Bonus'.

Therefore, it is advisable to thoroughly reach the policy brochure before investing in a plan.

Is there a fixed percentage on Sum Assured for 'No Claim Bonus'?

The percentage of 'No Claim Bonus' on Sum Assured depends upon plan to plan & Insurer to Insurer.

For instance- Different plans offered by Star Health Insurance offer different percentages of 'No Claim Bonus'.

Therefore, it becomes important to carefully check the Terms & Conditions of the plan & weigh the features against your requirements.

Bottom Line

Leading a healthy lifestyle not only keeps you healthy but also offers lots of benefits, and one of them is the No claim Bonus. In today's time, when healthcare is on a continuous rise, having the benefit of a No Claim Bonus is nothing less than a blessing. So, stay fit, healthy and accumulate your Benefit of NCB.