Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

All You Need To Know About No-Claim Bonus In Health Insurance

The incentive your insurance company gives you for a year without filing a claim is known as a no-claim bonus. To enhance your total covered, choose an NCB health insurance plan that offers the greatest No Claim Bonus/Cumulative Bonus for each year without a claim.

  • Jan 17, 2023
  • 1,799 Views

A health insurance no-claim bonus is a perk offered to the policyholder in their health insurance contract. The insurance provider compensates the policyholder in a modest way, often referred to as NCB, for a year without filing a claim. If no claims were made during the prior insurance period, the insured would receive a financial benefit under this benefit. The health insurance no-claim bonus is, therefore, among the most important variables to consider when buying a health insurance plan in India.

Key takeaways

Why policyholders should value the no-claims bonus.

  • In the case of a medical emergency, the No Claim Bonus enables you to better protect your family’s and your personal financial security.
  • The cost of renewing the NCB health insurance policy is reduced by receiving more coverage at a lower cost.
  • A no-claims incentive encourages policyholders to stay in the good physical condition and to file claims only when absolutely necessary.
  • No claim bonuses are offered by the majority of Indian health insurance companies for both individual and family policies. The terms and conditions of the policy, however, may vary from one insurer to the next.

What Are the Types of No-Claim Bonus?

There are typically two main sorts of health insurance no claim bonus in a health insurance policy.

Cumulative bonus

This benefit raises the coverage amount or sum insured of the policy by a specific percentage if the policyholder has a claim-free year. However, the policy’s premium doesn’t change.
For instance, the insurance provider offers a 5% no-claim incentive for each year you go without filing a claim after you buy a ₹5 lakh health insurance plan. If you haven’t filed any claims during the first year of your insurance, your sum insured will rise by 5%, or ₹5.25 lakh, without a change in premium cost. Similarly to this, your policy’s coverage amount will rise by 5% if you go two years without filing a claim.

Discount on premium

For each year without a claim, the renewal premium rate for the insurance is reduced by a predetermined percentage under this form of no-claim incentive. Nevertheless, the policy’s insured amount has not changed.

As an illustration, let’s say you paid a premium of ₹10,000 per year to obtain a health insurance plan in India with a coverage limit of ₹5 lakh. The insurance provider offers a 5% no-claim bonus for each year without a claim on the amount of the renewal payment. As a result, even though the policy total covered stays the same, you will still need to pay ₹9,500 as the premium at the time of renewal.

How is No Claim Bonus Beneficial?

Consider these explanations for why no claim bonus is a valuable perk for policyholders.

1. No Claim Bonus enables you to better secure your family’s and your own finances in the event of a medical emergency.

The cost of renewing the health insurance policy is reduced by receiving more coverage at a lower cost.

2. A no-claims incentive encourages policyholders to stay in the good physical condition and to file claims only when absolutely necessary.

3.No claim bonuses are offered by the majority of Indian health insurance companies for both individual and family policies. The terms and conditions of the policy, however, may vary from one insurer to the next.

How Much Will the Sum Insured Increase under Cumulative Bonus?

Although the policyholder has the option to use a cumulative bonus to raise the policy’s sum insured, they are only able to do so up to a set amount. The coverage level can typically be raised by 50% to 100% of the initial sum insured. You must read the policy paperwork to determine the precise limit because the terms and conditions for cumulative bonuses vary depending on the insurance providers.

Consider the scenario when your insurance provider gives a cumulative bonus of up to 50%, and you have a health insurance policy of ₹2 lakh. In this situation, your health insurance policy’s coverage amount may be enhanced by a maximum of ₹1 Lakh or 50% of the base sum insured amount.

No Claim Bonus Applies to Individual As Well As Floater Health Insurance Plans in India

Both individual and family health insurance plans offer a no-claims bonus. In contrast to the family floater health insurance policy, which offers coverage to the entire family, the individual health insurance policy only offers coverage to the policyholder. Therefore, if you didn’t file a claim during the previous policy year, regardless of whether you have an Individual health insurance plan or a floater health insurance plan, you can benefit from a no-claim bonus.

Are No Claim Bonuses Available in All Indian Health Insurance Plans?

No. Not all health insurance plans in India include the no-claims bonus feature. Plans with no claim bonuses have their own set of rules and regulations. To determine if insurance offers the no-claim bonus feature or not, it is imperative that you carefully study the policy terms before purchasing the policy.

Additionally, ensure you comprehend the policy’s terms and conditions as they relate to NCB. Examples include the amount by which the policy’s coverage can be raised, the percentage of NCB, etc. Based on the no-claim incentive, you can compare health insurance policies online and choose the one that best fits your needs

Wrapping up

Today’s common man finds it incredibly challenging to access the best medical facilities due to the skyrocketing expense of medical care and hospitalisation. No-claim bonus is a profitable way to increase the coverage of your health insurance policy and protect you and your loved ones from any kind of medical emergency. Before purchasing the policy, don’t forget to read the policy documentation and comprehend the NCB terms.

Kotak e-Term

Download Brochure

Features

  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Health Insurance Plan for Heart – What you Should Know on Symptoms and Diagnosis of Heart-Related Disease?

7 Things to Audit in Your Health Insurance Plan

Is Health Insurance the Same as Medical Insurance?

Which One is Better: Mediclaim or Health Insurance?

Section 80D: Everything You Need to About Income Tax Deduction for Medical Expenditure

Steps to Appeal A Health Insurance Claim Denial

What is Health Insurance and Why do You Need it?

What is the Difference Between a Mediclaim Policy, Health Insurance and Term Insurance?

Health Insurance for Personal Accidents

Heart and Cancer Insurance

Everything You Need to Know About Accidental Insurance Policy

Basics of Health Insurance

What are Health Insurance Premiums? How are they Calculated?

Key Factors that Decide Your Eligibility for Buying Health Insurance Plans

Do Add-On For Health Insurance Policies Really Add Value?

Why You Must Review Your Health Insurance Policy/ Plan Every Year?

What is Single Premium in Health Insurance?

How is Health Insurance Cost Calculated?

Things to keep in mind before buying a health insurance plan for diabetics

How Much Should I be Paying for Health Insurance?

Everything You Need to Know About Health Insurance for Parents

Why Opting for Short Term Health Insurance Plans is a Wise Idea?

What is International Health Insurance? Meaning, Importance and Benefits

Rashtriya Swasthya Bima Yojana: Eligibility, Coverage, Benefits

Buying Health Insurance with A Pre-Existing Illness? Things You Should Know

What Does Health Insurance Not Cover?

Guide on Fraudulent Health Insurance Claims in India

How to Choose a Right Health Insurance Plan?

What is the Persistency Ratio and Why Does it Matter to the Health Insurance Sector?

6 Common Myths about Health Insurance

Health Insurance Coverage: Day Care Treatment Vs OPD Treatment

How Is Your Health Insurance Premium Affected By Age?

Types of Health Insurance You Must Know About

Health Insurance for Liver: What You Should Know About the Symptoms and Diagnosis of Liver Problems

Health Insurance Plan for Family

Tax Benefits on Health Insurance Plans

Health Insurance with or Without Medical Tests? Which is Better

Health Insurance for Students Who Study Abroad

Seven Preventive Measures for Heart Related Illness

Saving Tax on Your Health Insurance

Why You Must Disclose Your Pre-Existing Conditions When You Buy Health Insurance

What is BMI Calculator, and why is it Important?

How to Switch to A Different Health Insurance Company?

Everything You Need to Know About the Ayushman Bharat Health Insurance Scheme

Healthy Habits to Avoid Falling Sick During Monsoon

Why do Patients with Hypertension Need Health Insurance?

Factors to Consider While Choosing a Health Insurance Plan for Your Parents

How to Claim Tax Benefits on Medical Insurance Premium?

10 Effects of Fast Food on Your Body

What Medical Expenses Can You Claim in Health Insurance Plans?

How Much Health Insurance Cover Should You Opt For?

Tips to Reduce Your Health Insurance Premium

What do Health Insurance Plans Cover?

Is Health Insurance Non-taxable?

Why is Cardiac Care Plan a boon for Heart Patients?

Why You Must Review Your Health Insurance Plan Every Year

How to Transfer Your Health Insurance Cover Without Losing Benefits?

Critical Illness Can Disrupt Family's Financial Goals and How Health Insurance Can be Useful

Why Should You Opt for Cancer Insurance?

Health Insurance for Brain Tumour: What You Should Know on Symptoms & Diagnosis of Brain Tumour

Top Five Institutes for Free Cancer Treatments in India

Key Difference between Health Insurance and Mediclaim Policy

What is Telemedicine? How to Seek Medical Treatment Remotely?

What is OPD Cover in Health Insurance?

Are You Covered for the Home Treatment Cost Under Your Health Insurance Policy?

How Much Of Health Insurance Is Tax Deductible?

Stress and Heart Health: 4 Things You Should Know

What are the Documents Required for Buying a Health Insurance Plan?

Critical Illness Insurance for Alzheimer's Disease

How do I Choose a good Health Insurance Plan?

The Importance of a Health Insurance Claim Ratio

Protect Your Family with Health Insurance Today

Does Critical Illness Insurance Cover Stroke?

7 Reason Why Should You Buy a Health Insurance Plan in Your 20s?

5 Reasons to Consider Investing in Health Care

Choosing Health Insurance for Senior Citizens

Benefits of Health Insurance You May Not Know About

List of Critical Illnesses Covered in Health and Life Insurance Plans

What Is the Restoration Benefit in Health Insurance?

How Your Eating Habits Affect Your Health & How to Change Them

10 Preventative Measures for Diabetes

Which Health Insurance Plans Cover Your Family Members?

5 Reasons to Buy Health Insurance in 2021

Why You Need to Know About the Critical Illness Plan?

A Millennial’s Guide to Buying Health Insurance

What is Disability Insurance?

Health Insurance Plan for Cancer: What You Should Know on Symptoms and Diagnosis of Cancer

How To Choose A Good Health Insurance Plan?

What Is the Restoration Benefit in Health Insurance Plan?

Why You Must Disclose Your Pre-Existing Conditions While Buying Health Insurance?

How wellness benefits can help reduce your health insurance premium

What is the Right Age to Buy Health Insurance Policy?

How to File Health Insurance Claims?

Is Cataract Surgery Covered under Health Insurance in India?

Why Your Health Insurance Cover Could be Insufficient?

5 Reasons to Own Both Health Insurance and Term Insurance

Difference Between Open Heart and Bypass Surgery

5 things to consider while renewing a health insurance policy

Health Insurance Coverage for HIV Patients

Health Insurance Plans for a Pre Existing Condition