Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. 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 life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. 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
  • 2,198 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

10 Preventative Measures for Diabetes

Health Insurance for Students Who Study Abroad

What Is the Restoration Benefit in Health Insurance Plan?

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

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

Tips to Reduce Your Health Insurance Premium

Looking for Best Heart and Cancer Insurance Plans

How Is Your Health Insurance Premium Affected By Age?

Here's How Stress Can Increase Your Risk for Heart Disease

Health Insurance Plans for Family

Guide on Fraudulent Health Insurance Claims in India

Insuring Against Accidents with an Accidental Death Insurance Rider

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

Which One is Better: Mediclaim or Health Insurance?

How Important Is Health Insurance for Your Family?

Here's are Top Reasons to Buy Health Insurance Plan in Your 20s

6 Reasons why you need to get a health insurance

Different Ways to Mentally Refresh After a Stressful Day

Key Factors that Decide Your Eligibility for Buying Health Insurance Plans

Here's Why Cardiac Care Plan a Boon for Heart Patients

How to Choose a Right Health Insurance Plan?

5 Reasons to Buy Health Insurance in 2021

Key Difference between Health Insurance and Mediclaim Policy

What is the Right Age to Buy Health Insurance Policy?

Side Effects of Covid-19 Booster Doses

Single Premium Term Insurance - Understand the Benefits

How Much Of Health Insurance Is Tax Deductible?

List of Critical Illnesses Covered in Health and Life Insurance Plans

Which health insurance is good for family?

How to Transfer Your Health Insurance Cover Without Losing Benefits?

Health Insurance Wellness Programs and Benefits

Is Health Insurance Non-taxable?

Tax Benefits on Health Insurance Plans

Why medical test is important while buying a health cover?

Disability Insurance Policy & Coverage

Healthy Habits to Avoid Falling Sick During Monsoon

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

What are Health Insurance Premiums? How are they Calculated?

What Should You Opt for? Short Term or long Term Health Insurance ?

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

How much Health Insurance do you Require?

What is Health Insurance? - Meaning and Types

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

Seven Preventive Measures for Heart Related Illness

5 Reasons to Own Both Health Insurance and Term Insurance

Benefits of Health Insurance You May Not Know About

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

What do Health Insurance Plans Cover?

Why do Patients with Hypertension Need Health Insurance?

What is OPD Cover in Health Insurance?

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

10 Effects of Fast Food on Your Body

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

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

Health Insurance for Personal Accidents

Buying health insurance? Here's why it is important to disclose your pre-existing medical conditions

3 Reasons Why Your Health Insurance Cover Could be Insufficient

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

Tax Benefits of Health Insurance Plans

Critical Illness Insurance: What Is It? Who Needs It?

How To Appeal A Health Insurance Claim Denial

How To Choose A Good Health Insurance Plan?

How Much Should I be Paying for Health Insurance?

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

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

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

What is Difference between Day Care Treatment and OPD Treatment?

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

Health Insurance Add-Ons: Know all About Health Insurance Riders

Important Things You Must Know About Accidental Insurance

Everything You Need to Know About Health Insurance for Parents

Health Insurance vs Medical Insurance – How To Choose Between The Two

Basics of Health Insurance

How is Health Insurance Cost Calculated?

Here's Common Myths about Health Insurance

What is International Health Insurance? Meaning, Importance and Benefits

What to Expect from a Health Plan Audit

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

What is Telemedicine? All You Need To Know

5 things to consider while renewing a health insurance policy

10 Effects of Fast Food on Your Body

Insuring yourself against Ill Health with a Critical Illness Rider

HIV+ Patients: Are They Covered by Health Insurance?

What Medical Expenses Can You Claim in Health Insurance Plans?

Investing In The Healthcare Sector

What Does Health Insurance Not Cover?

Why Should You Opt for Cancer Insurance?

Does Cataract Surgery Come Under Health Insurance And The Cost Of Surgery In India?

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

Why You Must Review Your Health Insurance Plan Every Year

What is BMI Calculator, And Why It is Important?

Why Spending Time with Friends is Essential for Your Mental Health?

Choosing Health Insurance for Senior Citizens

Top Five Institutes for Free Cancer Treatments in India

What Is the Restoration Benefit in Health Insurance?

Open Heart Vs Bypass Surgery

How to Claim Tax Benefits on Medical Insurance Premium?

A Millennial's Guide to Health Insurance

How do I Choose a good Health Insurance Plan?

Health Insurance Plans for a Pre Existing Condition

Insuring Against Disability With Disability Insurance Rider

How to File Health Insurance Claims?

Accidental Death Benefit Rider In Term Life Insurance

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

The Importance of a Health Insurance Claim Ratio

Here's how to transfer your health insurance online to different company