To keep up with medical inflation, a no claim bonus is the best way to boost your insurance coverage without having to pay anything extra out of your pocket. When you purchase an insurance policy, you pay an annual 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 medical expenses in a health insurance policy. This is how a no claim bonus works in most health insurance policies.
What are the types of No Claim Bonus?
The no claim bonus in health insurance can be availed in two ways, those are
· Cumulative bonus: A no-claim bonus occurs when your coverage amount increases, but your premium remains the same after a claim-free year.
· Premium discount: A premium reduction for no claim bonus reduces the premium price by a certain percentage for each year without a claim, while the coverage level remains the same.
What are the features of the No Claim Bonus?
A cumulative NCB is more common among the policyholders, but both the types of no claim bonus have several characteristics, let's have a look at them:
· If you choose a rising sum insured insurance, the sum insured will increase by 5% to 50%, depending on the coverage;
· The rise is cumulative in nature;
· The rise in the sum insured can be availed up to a certain maximum limit;
· Premium discounts of 5% or 10% are allowed in the renewal premium in the case of premium discounts;
· If a claim is made, the no claim bonus is lowered by a certain percentage, and no bonus is permitted in the year in which the claim is made;
· If the new insurance provider allows it, you can transfer your collected NCB to the new policy when you port your coverage to them.
What's the No Claim Bonus all about?
NCB in a health insurance policy is a beneficial investment. Read on to know all about no claim bonus.
· Individual health insurance just covers the policyholder, whereas floater insurance covers the entire family. If you have an individual policy and do not make any health insurance claims during the year, you become eligible to receive a no claim bonus in the following year. It works similarly for a floater health plan, where if no member makes a claim to the policy, they will be eligible for a no claim bonus.
· The present rate of inflation is between 10% and 12%, which impacts the healthcare industry. As a result, medical services are becoming increasingly expensive. Having no-claim bonus health insurance is like having a lifeline in these situations because you get help when you need it.
How do the no claim bonus works?
The majority of policyholders are unlikely to make a claim on their health insurance every year. But, occasionally, hospital bills are affordable, and you may choose to pay out of pocket, making you eligible for a no-claim bonus.
Let's take an example: Assume you have a no-claim health insurance policy with a sum insured of Rs. 4 lakhs. Your insurer will pay you 5% of your total NCB in health insurance for each year you go without filing a claim, up to a maximum of 50%. As a result, the total sum insured accessible to you after each year of no claims would be:
ü In the first year, it would be Rs. 420000,
ü In the second year, it would be Rs. 440000,
ü In the third year, it would be Rs. 460000.
50% is the insurer's NCB limit, particularly health insurance; hence, the total sum insured available to you is Rs. 6 lakhs. Every year, your no-claim bonus allows you to get more coverage with a higher sum insured amount.
Bottom Line
As a result of today's medical inflation, the cost of hospitalisation and other medical costs has skyrocketed. In these circumstances, a no-claim bonus is a great way to boost your health insurance coverage. Reputable insurers like Care Health Insurance offer comprehensive health insurance plans with upto 150% No Claim Bonus. In addition, with 16500+ cashless healthcare providers, they also cover pre and post-hospitalization expenses, annual health check-ups, cashless treatment facility and more.
So, if you want to get the most out of your health insurance, stay in shape with health insurance that offers a no claim bonus!
Source:
https://www.irdai.gov.in/ADMINCMS/cms/Uploadedfiles/RTI_FAQ/FAQ_RTI_HEALTH_DEPT.pdf
