No Claim Bonus in Health Insurance: When you buy a health insurance policy, there is a certain premium to be paid for the coverage every year. You can claim for hospitalization expenses during the policy term, which covers the cost of treatment as per the coverage. However, if you have not taken any claim for any year, then in such a situation do you get any benefit? Absolutely happens and under health insurance, if you have not made any claim during any policy term, then the insurance company gives the facility of ‘No Claim Bonus’ (NCB). This is a kind of reward feature that the insurance company gives to its customers for not taking a claim in any year. The ‘No Claim Bonus’ can play a big role in that your health insurance coverage is not affected due to medical inflation.
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This is the advantage of No Claim Bonus
- The most important thing about the ‘No Claim Bonus’ feature is that it keeps on adding up every year i.e. it increases every claim-free year. Under this, the insurance companies can get a discount in the policy premium from the bonuses that they give. Apart from this, insurance companies offer products related to gym, spa and yoga subscriptions or wellness under this to increase the insurance coverage without any change in the policy premium.
- Those who are not happy with their current insurance company and want to shift to another insurance company, then this bonus also gets transferred. However, it is necessary that to take advantage of this, the health policy will have to be renewed before the renewal date. All insurance companies give 30 days to renew from the initial renewal date and if the policy is not renewed during this period, then the bonus will be over.
How is a Critical Illness Policy different from a regular health insurance policy? What are the benefits of investing in it?
- No Claim Bonus is applicable for both individual and family floater health insurance plans.
- How much bonus will be received, it depends on the conditions of the insurance companies. In such a situation, while buying a health insurance policy, what insurance companies are offering under NCB, it must be checked. Some insurance companies offer the facility to increase the sum insured up to 200%. For example, if a person has bought a health insurance plan of Rs 5 lakh and has not made any claim for four consecutive years, then every year his sum insured can increase by 50 percent i.e. Rs 2.5 lakh and after four years the total sum insured 15 lakh will be Rs. However, at present, the feature of increasing the sum insured up to 200% is available only in the Care Plus plan of Care Health Insurance.
- Talking about the Care Plus plan, a special benefit ‘No-claim Bonus Protection’ is also available to the insured in this. If you have claimed up to 25% of the sum insured under a health insurance plan during any policy term, the NCB benefit will continue. If this protection is not there, then even if you claim up to 10 percent of the sum insured, then the benefit of NCB will not be available.
(Amit Chhabra, Head – Health Insurance, Policybazaar.com)