Monthly No Claim Bonus OPD Sum Insured in Health Insurance

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If you are wondering about the No Claim Bonus (NCB) in health insurance, this blog will give you an in-depth idea. It is a remunerative benefit that you get in your health insurance plan. NCB is one of the modest ways through which you can get a claim-free year from your insurer.

Remember, you get to enjoy this benefit, only if you did not raise any claim in the previous policy term. That is why No Claim Bonus is one of the most crucial factors to consider while buying a health insurance plan. Read below to explore more about this in the below sections.

What are the Types of (NBC) No Claim Bonus in Health Insurance?

In health insurance, No Claim Bonus has the following two types, which you should know.

Cumulative Bonus

Under this type of NCB, if you have a claim-free year, the sum insured amount of your health plan will increase by a percentage. Although the premium of your health plan will be the same as before. Read on to the example given below to get a clear insight.

Example: Neha has a health insurance plan of Rs. 5 lakhs, and her insurance provider offers 5% NCB (No Claim Bonus) for each claim-free year. If Neha does not raise any claims in the first year of the policy term, the sum insured will increase to Rs. 5.25 lakh for the same premium, and so on.

Discount on Premium

Under this type of NCB, for every claim-free year, your premium amount will decrease by a certain percentage. However, the maximum claimable amount will be the same. Refer to the below-listed example to get a clear overview of the discount on premium for NCB.

Example: Sujata has a health insurance policy of Rs. 5 Lakh in exchange for Rs. 10,000 annual premium amount. Note, that her insurer offers a discount of 5% on the renewal premium amount for each claim-free year. Thus, Sujata will have to pay Rs. 9,500 premium for her health insurance plan (next year).

Why Do You Need (NBC) No Claim Bonus in Health insurance?

No Claim Bonus comes with the following benefits, which make it preferable to get into a health insurance plan. Consider the following pointers to understand the needs of NBC in your health insurance plan.

You can easily transfer your NCB (No Claim Bonus) during your insurance portability. Accrued NCB is transferable if you choose to switch your insurance policy.
Due to increased healthcare costs, your policy's sum insured might not be enough. No claim Bonus gives you a scope for getting an increased sum insured as a reward during a claim-free year.
NCB ensures maximum coverage as the sum insured does not go below the initial sum insured of your health insurance plan.
Due to the additional coverage amount, it offers extra financial support to you and your family members.

Things to Know About No Claim Bonus Sum Insured

No Claim Bonus (NCB) is one of the simplest ways of getting a reward from your insurance provider for each claim-free year. You should consider it while buying a health insurance plan. In the below section, you will get to know the important factors related to No Claim Bonus sum insured.

1. Any NCB Sum Insured that has accrued will be available for any claims made in the subsequent policy year.

2. If you choose not to renew this Basic Benefit Option, the NCB Sum Insured under the Policy shall be forfeited at the time of renewal of your policy.

3. The NCB Sum Insured cannot be more than the Base Sum Insured during any policy year.

4. If the base sum insured is reduced at the time of renewal, the applicable NCB sum insured will be calculated on the revised base sum insured on a pro-rata basis.

5. If you claim under Basic Benefit (In-patient Hospitalisation) or Basic Benefit (Day Care Treatment) during your policy term, the NCB sum insured in the subsequent policy year will be zero.

6. In case, the base sum insured under your policy increases at the time of renewal, the NCB sum insured will be calculated on the initial sum insured of the last completed policy year.

The Bottom Line

Due to the high inflation rate in India, medical expenses are rising gradually. Under such situations, the No Claim Bonus is an ideal way to enhance your health care coverage. Now that you are aware of everything about the No Claim Bonus in health insurance, avail it and ensure optimal safety for you and your family members.

Frequently Asked Questions

Below are a few frequently asked questions and answers related to No Claim Bonus (NCB) in health insurance.

1. What happens to your No Claim Bonus if you do not renew your policy?

In such cases, you will not get any NCB benefit as you did not renew your policy. You must know that every health insurance plan comes with a definite term. Thus you should consider choosing plans with longer terms to avoid any hassle of renewing your policy every year.

2. How to claim a No Claim Bonus in a health insurance plan?

There are two types of No Claim Bonus in health insurance, one is cumulative and the other is a discount on premium. You can choose any NCB type to get benefits at your convenience.

3. Are there any tax benefits on health insurance?

Yes, Under Section 80D of the Income Tax Act 1961 of India, you can avail a tax deduction of up to Rs. 25,000 (if you are below 60 years). In the case of senior citizens, one can claim up to Rs. 50,000 tax deductions.

4. How much will the sum insured increase under the Cumulative Bonus?

Usually, the sum insured can increase up to 50% to 100% of the initial coverage amount. However, the percentage of increase differs from one insurance company to another. Thus, you should look into the terms of NCB before purchasing a health insurance policy.

5. What happens to your NBC benefits if you switch from an individual to a family floater plan?

By switching your health plan to a family floater insurance policy, you can easily transfer the accrued NBC benefit to your new health insurance policy.

_Disclaimer:_{The plans, services, features, processes, and other details mentioned on this page are subject to availability and changes. Please check the applicable policy wordings before making any insurance-related decisions. Feel free to reach out to us at [email protected] for any queries.}