If you don’t make a claim during your health insurance policy term, many insurers reward you with a No‑Claim Bonus (NCB). It’s a way to reduce premiums or increase benefits over time. Coverbizz explains what NCB is, how it works in India, and how you can benefit from it.
What is No‑Claim Bonus (NCB) In Health Insurance?
NCB is a reward for policyholders who do not file claims in a policy year. The reward might be:
- Discount on the premium on renewal; or
- Increase in sum insured at no extra premium; or
- Discount on certain benefits (higher thresholds, etc.
Each insurer has its own rules.
How No-Claim Bonus In Health Insurance Typically Works
- If you go through a policy year without any hospitalisation claim or claim under certain heads, you become eligible for NCB.
- At renewal, the insurer offers you the bonus. E.g., 5% extra sum insured or 10‑20% discount, depends on insurer, plan, your past record.
- If you make a claim during that year, you may lose the bonus (or part of it), depending on the policy.
Important Things To Know About No-Claim Bonus In Health Insurance
- Eligibility: Some claims don’t affect NCB (minor ones or OPD claims, etc.), others might. Must check policy wording.
- Maximum Limit: There might be a cap on how much bonus you can accumulate.
- Effect on Premium: Extra benefit can increase premium in the future if the bonus cumulates, so check the long‑term cost.
- Portability: If you switch insurer, check if NCB is preserved (statutory/IRDAI rules).
Conclusion
NCB is a simple but powerful incentive to stay claim‑free. If you keep your policy healthy, this bonus can enhance benefits or ease costs over time. Coverbizz helps clients compare insurers’ NCB policies and pick ones that reward diligence.
