No-claim bonus (NCB) is an incentive to its policyholders for a claim-free year. It brings down the cost of health insurance plans and also enhances coverage. Health insurance NCB is a reward for policyholders who maintain good health and don’t need to file a claim. If a policyholder does not file any claim in a policy year, he qualifies for no-claim bonus benefits.

In this blog, we will discuss the types, features and benefits of no-claim bonuses.

Types of health insurance no-claim bonus

There are two types of no-claim bonuses in health insurance as explained below.

Cumulative bonus

When there is no claim filed in a policy year, the base sum insured is increased by a certain percentage, as specified in the policy, subject to a maximum limit. The sum insured keeps on increasing for every consecutive claim-free policy year till it reaches the maximum limit. The policyholder gets an increased sum insured as a reward for every claim-free year.

Discount on premium

In this type of no-claim bonus, the policyholder is granted health insurance renewal rewards in the form of a discount on the renewal premium for a claim-free year. Note that there are no changes in the sum insured. The discount is given according to the percentage specified in the policy.

Mostly, health insurance NCB ranges from 5% to 20% depending on the health insurance.

Features of health insurance no-claim bonus

No-claim bonus is an effective way to reduce the cost of health insurance. Here are some key features of a no-claim bonus.

1. Individual as well as floater health insurance plans offer no-claim bonus every year if no claim is made in a policy year. For floater policies, no member should claim in the policy year to be eligible for a no-claim bonus. Every health insurance plan offering a no-claim bonus has its terms and conditions

2. All health insurance plans don’t offer a no-claim bonus like group health insurance plans which are different from individual plans.

3. In case you port your health insurance policy, your accumulated no-claim bonus is also transferred.

No-claim bonus benefits

No-claim bonus benefits the policyholders in many ways and allows for saving money on health insurance.

Reduced renewal premium

NCB provides a discount on renewal premiums after a claim-free year. Hence you get the same coverage at a reduced premium. It helps save money on insurance premiums.

Enhanced coverage

Some policies provide a cumulative bonus as NCB, which increases your sum insured by a specified percentage for every claim-free year. Hence you get enhanced coverage without paying any additional premium.

Saves money in the long run

The NCB keeps getting accumulated for every consecutive claim-free year till the upper limit specified in the policy. This way it helps you save a significant amount in the long run.

Conclusion

To get the maximum no-claim benefits, read the policy terms and conditions carefully to understand the specific benefits provided by health insurance from Zurich Kotak General Insurance and enjoy cost-effective health insurance coverage.

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