No Claim Bonus in Health Insurance: Rewards for Staying Healthy

Maintaining good health is an investment, as is having a robust health insurance plan. But what if you could be rewarded for staying healthy? The No Claim Bonus in health insurance does just that. 

Let’s explore how this feature unlocks significant savings on your health insurance premiums. 

What is a No Claim Bonus (NCB)?

The No Claim Bonus is an incentive your insurer offers for every claim-free year on your health insurance renewal premium fr every claim-free year. It means you get a discount if you don’t make any claims during the year.

There are two types of No Claim Bonus:

1. Discount on premium: This is the most common type of No Claim Bonus that directly reduces your renewal premium.

2. Increased sum insured: Some insurers offer to increase your sum insured (the maximum amount covered by the policy) for every claim-free year, providing more financial protection without raising the premium. This is also known as the renewal bonus.

NOTE: Several insurance companies offer both types of No Claim Bonus.

Importance of No Claim Bonus in Health Insurance

The No Claim Bonus in health insurance is how your insurance company rewards healthy habits and responsible use of your coverage. Your renewal discount increases with the number of years you stay claim-free.

A healthy lifestyle and routine checkups can help you avoid going to the doctor too often.

The beauty of NCB is that it helps you save money and promotes good behaviours that make you healthier. It’s a win-win for your health and finances.

Benefits of No Claim Bonus

There are two main benefits of No Claim Bonus:

• Reduced policy renewal premiums: The biggest benefit of No Claim Bonus is that it lowers your health insurance premium every year you renew without making a claim. This results in significant cost savings over time. 

Encouragement to seek preventative care: Knowing that claim-free years lead to lower premiums encourages you to focus on preventative healthcare. It can include regular checkups, screenings, and healthy lifestyle choices, ultimately contributing to better overall well-being.

Understanding the No Claim Bonus

NCB functions as a tiered discount system that enhances the features and benefits of your health insurance. The more consecutive claim-free years you have on your policy, the higher the discount percentage you receive on your premium renewal.

A Typical NCB Discount Range

The exact NCB discount percentage can vary depending on your insurer and the specific plan you choose. However, it typically falls within 10% to 50% for claim-free years.

NCB tiers in health insurance:

Mechanism of the NCB: How Does the Calculation Work?

Assume that your insurer gives a 15% NCB for years without a claim and that your health insurance premium is ₹10,000. The premium for the following year will only cost ₹8,500 (₹10,000 – (₹10,000 * 15%)) if you don’t file any claims during the first year.

Remember these are approximate values; contact your insurer for information on their NCB and calculating techniques. Compare the offers on health insurance online to make an informed decision.

Important Factors to Consider Regarding NCB

• NCB Add-on: Some health insurance plans in India offer an NCB protector add-on. It safeguards your accumulated NCB even if you file a minor claim during the policy period. However, this add-on comes at an additional cost, so weigh the pros and cons before opting for it.
  
  For example, if you’re prone to minor illnesses or injuries, it might be a wise investment to secure your NCB discount. But if you’re generally healthy, you might be better off saving the money on the add-on.
  
  
• The Effect of Claim Types and Exclusions on NCB Eligibility: Not all claims affect your NCB eligibility. Carefully review your policy documents to understand the specific exclusions related to NCB. These might include OPD (Out-Patient Department) visits or maternity expenses.
  
  
• Renewal Possibilities for NCB Transfers: If you switch to a different health insurance plan within the same company, you can transfer your accumulated NCB to the new plan. However, always confirm this benefit with your insurer before switching plans.

Key Takeaways

The No Claim Bonus in health insurance encourages preventative healthcare and proactive health management. Awareness about NCB helps you choose a comprehensive health cover that rewards you for staying healthy.

Remember to compare the types of No Claim Bonus offered by different insurers. Consulting a financial advisor can also help you choose a health insurance plan that best suits your needs. Additionally, with platforms such as PhonePe, managing your health insurance policy becomes all the more easy and hassle-free!