No Claim Bonus in Health Insurance

Case Study

Sandra did not have the budget nor did she feel the need to opt for a health insurance policy, for, she told her friend – wasn’t she healthy and fit? She always watched her diet and had plenty of exercise. However, on her friend’s insistence, she purchased a health insurance policy from ICICI Lombard.

Sandra did not have to undergo any major treatment during the policy period, but had opted for a routine physical examination, which did not require admission in the hospital. At the end of the policy period, when she was renewing her policy, she was happy to get a 10% additional sum insured for the following year. Fortunately for her, she did not suffer from any serious health issues during her consecutive policy periods, except for occasional out-patient check-ups and consultations.

This continued for 5 years, with each year providing her an additional 10% sum insured to her kitty. This is the maximum additional sum insured, 50%, which a policyholder is eligible for under the policy. Sandra was delighted and realised what a wise decision it was not to fret over budget and refrain from opting for a policy. The policy not only fits her budget but also provides her additional cover for her healthcare needs.