When you buy an insurance policy, you pay a. Within the policy year, if the need arises , you raise a claim with the insurer, and the insurer compensates for the financial loss incurred. . Customers who are unhappy with their current insurer and wish to port their approach to a better insurer can even transfer the NCB to the new insurer.
What if you do not make any claim in a? Under two general insurance policies – – if you do not claim within a policy year, the insurer awards you an incentive known as NCB or ‘No Claim Bonus. The NCB is offered to the customers yearly, provided they do not file any claim during the year. The No Claim Bonus is typically a reward the insurer pays the policyholder for not filing a lawsuit in a policy year. It is also a way to reward the policyholders for their loyalty. Sometimes, offering a No Claim Bonus is cheaper than for a claim that may run into lakhs.
Most importantly, the insurer’s bonus is cumulative, and it keeps increasing with every claim-free year. The proposed bonus in case of health insurance can be availed in the form of a discount on the subsequent policy premium, enhancement of the sum insured without anypremium, or other benefits like Gym, Spa, and Yoga subscriptions, or discount on wellness-related products. Most importantly, NCB applies to individual and family floater health . If you have a personal and do not make any claim throughout the policy year, the insurer rewards you with a no-claim bonus. Similarly, if you have a family floater plan and no one from the lives insured in the program makes any claim, the insurer here also rewards a no-claim bonus.
The bonus offered through NCB is subject to each insurer’s terms and conditions. While some insurers may allow the enhancement of the sum insured, some maydiscounts on premiums or wellness products and services. While buying a health , check the benefits offered under NCB. Earlier, most health policies allowed sum insured enhancement through no-claim bonus up to a limit, i.e., a maximum of 50%. However, health insurance to enhance the sum insured by up to 200%. For instance, Mr. Rohit – 30 – buys a health with Rs 5 lakh guaranteed for four consecutive years; he does not file any claim. Now, for every claim-free year, the sum will increase by 50%, i.e., Rs 2.5 lakh. After four claim-free years, the sum will rise to Rs 15 lakh – an enhancement of 200%.
Another exciting part of Care Health Insurance’s Care Plus plan is that it comes with an inbuilt benefit called No-Claim Bonus Protection. His exclusive feature of a 200% increase in sum insured through the No-Claim Bonus is only available inInsurance’s Care Plus plan. Usually, if you have a health insurance plan and are in the policy year, the No-Claim Bon Bonus is wholly wiped out even if you file a claim as low as 10% of the sum insured. However, with the No-Claim Bonus Protection feature, the no-claim bonus remains unaffected, provided the claim amount is up to 25% of the total sum certified.
Customers who are unhappy with their current insurer and wish to port their policy to a better insurer can even transfer the NCB to the new insurer. However, to avail of NCB benefits, onepolicy within the renewal date. Every insurer gives customers a maximum of 30 days grace period after the initial renewal date to continue their health policy. If the customer fails to renew the health policy even during the grace period, all the NCB benefits are lost and never be revived.
With medical inflation rising at a double-digit pace and the cost of hospitalization and other medical expenses touching the sky, itinsurance plan in place for any unforeseen circumstances. So, stay fit and healthy, and make the most of your health insurance plan when need be. No-Claim Bonus is a great way to enhance your sum insured without paying anything medical inflation.