Managing health expenses can feel overwhelming, especially when unexpected medical bills pop up. Health insurance helps, but you can get even more value from it if you stay claim-free. The No Claim Bonus or NCB is a reward that can boost your coverage or lower your renewal premium. Understanding how it works helps you make smarter choices, plan for future expenses and get the most from your policy.
What is NCB in health insurance
NCB in health insurance is a benefit you receive when you complete a policy year without making any claims. It is added automatically at renewal and increases the value of your policy over time. NCB supports long-term planning, especially for family health coverage and encourages timely renewals and responsible claim use.
Types of no-claim bonus offered by insurers
Insurers offer a few options to reward a claim-free year. A cumulative bonus increases your sum insured by a set percentage each year you don’t make a claim, usually 5%-50%. For example, a ₹5 lakh cover with a 10% bonus becomes ₹5.5 lakh after one claim-free year, helping you build higher coverage over time.
Some plans offer a premium discount, reducing your renewal premium instead of increasing coverage. For instance, a ₹10,000 premium with a 10% NCB becomes ₹9,000 at renewal, which can help manage costs. Some insurers also provide an NCB protector add-on that may help retain your bonus after small claims. Availability and terms vary, so check your policy or speak with your insurer.
How NCB is calculated in health insurance
Each insurer calculates NCB differently, but the principle is the same: your bonus grows when you don’t make claims and may reset if you do, unless you have an NCB protector add-on.
With the cumulative increase method, the bonus is a percentage of your sum insured. For example, a ₹5 lakh policy with a 10% NCB becomes ₹5.5 lakh after one claim-free year.
With the premium discount method, NCB is applied to your renewal premium. For instance, an ₹8,000 premium with a 10% NCB becomes ₹7,200 at renewal.
The impact of a claim depends on the insurer and coverage type. Maximum cumulative NCB, sum insured limits, renewal timelines and portability rules vary by insurer. Check your policy wordings for details.
Note: This is an indicative list. Please read the policy wordings for the complete list of inclusions/exclusions.
Factors that influence NCB calculation
Several factors determine how your no claim bonus for health insurance is calculated:
- Claim history: Whether you made any claims during the policy year. The impact of a claim on NCB depends on the insurer and type of coverage, and an NCB protector add-on may help retain it.
- Type of plan: Different plans have different NCB structures. Individual plans may offer a cumulative bonus, while family plans may share NCB benefits.
- Insurer’s rules: Limits vary by insurer, typically up to 50% cumulative NCB, though some may allow more.
- Add-on purchased: An NCB protector can help retain accumulated bonus for certain claims.
- Base sum insured: Higher coverage results in a higher cumulative bonus in monetary terms.
- Renewal timelines: Missing renewal deadlines may reset your NCB; grace periods vary by insurer.
- Portability: NCB can transfer to a new insurer if portability rules are followed.
Note: This is an indicative list. Please read the policy wordings for the complete list of inclusions/exclusions.
Difference between cumulative bonus and discount on premium
A cumulative bonus increases your sum insured each year you remain claim-free. Your premium stays the same, but your coverage grows, providing more financial protection over time. This is suitable for families or anyone seeking stronger long-term coverage.
A discount on premium reduces the amount you pay at renewal without changing your coverage. It helps manage costs or maintain predictable premiums. The choice depends on whether you prefer higher protection or lower annual expenses.
How to check your NCB in an existing health insurance policy
You can check your NCB through your insurer’s mobile app, policy document, customer portal or by contacting customer support. Your renewal notice also clearly states your accumulated NCB amount in your health insurance policy.
Conclusion
A clear understanding of NCB helps you evaluate the long-term value of your health insurance, not just the yearly premium. It also gives you better control over how your coverage grows and what you can expect at renewal. Reviewing your NCB regularly ensures that your policy, especially health insurance for family, continues to match your needs and medical costs.
FAQs
1. What affects the NCB amount in health insurance?
The NCB amount in health insurance depends mainly on your claim history and the bonus rules set by your insurer.
2. Is the no-claim bonus for health insurance transferable?
Yes, the no-claim bonus for health insurance can be carried forward when you port your policy.
3. How does no claim bonus on health insurance help in the long run?
NCB health insurance boosts your coverage over time. This makes your future medical costs easier to manage.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis or treatment. Please consult a certified medical and/or nutrition professional for any questions. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.
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