How to get a no claim bonus in health insurance


With medical inflation rising at a fast pace and the cost of hospitalization and other medical bills skyrocketing, it is critical to have a health insurance plan in place to cover any unforeseen events.

 To combat medical inflation, a No-Claim Bonus is a terrific method to increase your total insured without having to spend anything out of cash.

When you purchase an insurance policy, you pay a premium to the insurer in exchange for the coverage provided. If a financial loss occurs during the policy year, you file a claim with the insurer, and the insurer compensates you for the financial loss. This is how most insurance policies work.

Have you ever wondered what happens if you don’t file a claim in a certain insurance year?

If you do not file a claim within a policy year under two general insurance policies – Health and Motor insurance – the insurer will provide you an incentive known as No Claim Bonus (NCB). Customers receive the NCB every year if they do not file a claim during the policy year.

The NCB is often a compensation paid to the policyholder by the insurer for not filing a claim during the policy year. Offering a No Claim Bonus is sometimes far less expensive than paying out for a claim that could cost thousands of dollars.

Most crucially, the incentive offered by the insurance is cumulative in nature, growing with each claim-free year. In the case of health insurance, the offered bonus can be in the form of a discount on the succeeding policy premium, an increase in the sum insured without any change in the policy cost, or other perks such as Gym, Spa, and Yoga subscriptions, or a discount on wellness-related products.

Most notably, NCB applies to both individual and family floater health insurance policies. If you have either one of those policies or both and do not make any claims throughout the policy year, the insurer will reward you with a no-claim bonus.

The NCB bonus is subject to the terms and conditions of each insurer. While some insurers may allow you to increase your total covered, others may give a premium discount or a discount on wellness products and services.

When purchasing a health insurance plan, make sure to ask the insurer about the NCB benefits. Previously, most health policies provided for the increase of the sum insured through no-claim bonus up to a certain level, i.e. a maximum of 50%. However, there are currently health insurance policies on the market that allow you to increase your insured sum by up to 200 percent.

You receive NCB benefits, make sure to renew your health insurance coverage by the renewal date. Customers have a maximum of 30 days after the first renewal date to renew their health insurance policy. If the customer fails to renew the health insurance coverage, even within the grace period, all NCB benefits are forfeited and cannot be recovered.

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