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What is No Claim Bonus in Health Insurance?

Posted by Royal Sundaram on 21 Feb 2019


With regard to no-claim bonus in health insurance, it is the reward that the insurance company offers to the policyholder for not making claims in the previous years. No claim bonus, as the name suggests, is a discount that can be earned by maintaining a claim-free record in the preceding years.

Let’s take an example, if an individual has a health insurance policy of Rs 5 Lakh, then the insurance company will offer 20% of cumulative bonus for the claim-free years. With no-claim bonus, you can double your sum assured in 5 claim-free years.

Here’re the following situations under which it is offered to the policyholder –

  • * The cumulative bonus that the insured person is entitled to receive on their health policy will be mentioned in the policy document.
  • * The cumulative bonus will expire if the policyholder will not renew the health insurance policy on time.
  • * The rate of the sum assured is increased every year and it varies from 10% to 50%.


Features of NCB in health insurance

  • * For each claim-free year, mostly insurance companies offer an NCB that ranges between 5% to 20%
  • * The NCB benefits can be transferred while transferring the policy from one service provider to another
  • * If the policy is lapsed for non-payment of premium, the accumulated NCB benefit will also lapse.

Besides, if you are looking to buy health insurance policy online or Arogya Sanjeevani Policy, then go for Royal Sundaram; it offers a comprehensive plan for individuals and family at affordable prices.

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One response to “What is No Claim Bonus in Health Insurance?”

  1. Sharma says:

    I have come across this term “no claim” in many instances and wasn’t much aware of the same. I’m glad I found this informative piece.

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