No Claim Bonus (NCB) in Health Insurance

A No Claim Bonus (NCB) in health insurance is a reward from insurers for not making any claims in a policy year. It recognises disciplined use of your health insurance. It also encourages maintaining good health. The bonus usually comes as an increased sum insured or a discount on premiums at renewal. Understanding what is NCB in health insurance and how it works can help you get the most from your policy and save on costs.

What is a no claim bonus in health insurance?

A No Claim Bonus in health insurance is an extra benefit given by insurers when you do not make a claim in a policy year. Simply put, it rewards policyholders who stay healthy and avoid hospitalisation claims. The NCB in health insurance meaning is directly linked to your disciplined health management and claim-free years. It can either increase your coverage or reduce your premiums in the renewal period, making your health insurance more cost-effective over time.

How Does No Claim Bonus works in Health Insurance?

The No Claim Bonus on health insurance generally increases every claim-free year. Typically, insurers provide a 5–50% increase in the sum insured for each consecutive claim-free year. Here's an illustrative table showing how it works:

In practice, the health insurance no claim bonus helps you grow your coverage without paying any extra premium initially. It’s worth noting that some insurers allow you to retain a part of your NCB even if a small claim is made.

Types of No Claim Bonus (NCB) in Health Insurance

There are a few variations of NCB offered in the market. Common types include:
 

• Sum insured increase: Each claim-free year increases your sum insured by a fixed percentage.
  Example: A ₹5,00,000 policy may grow to ₹5,50,000 after one claim-free year.

• Premium discount: Some insurers reduce your renewal premium if no claims are made.
  Example: A 5% discount on the premium after a claim-free year.

• Combination of both: Certain policies provide both sum insured increase and premium discount, giving dual benefits.

Features of No Claim Bonus (NCB) in Health Insurance

The NCB in health insurance has the following features:
 

• Reward for claim-free years

• Can increase sum insured up to a certain cap

• May offer premium discounts at renewal

• Encourages responsible usage of health insurance

• Sometimes transferable to new policies with the same insurer

Benefits of no claim bonus (NCB)

The no claim bonus in a health insurance plan offers the following benefits:
 

• Enhances financial protection without extra cost

• Encourages preventive healthcare habits

• Reduces long-term insurance costs via premium discounts

• Provides flexibility in managing health risks over time

• Useful for both individuals and families in maximising coverage

What is the add-on cover for no claim bonus in health insurance?

The add-on cover for No Claim Bonus is an optional feature. It lets policyholders retain their NCB benefits even after making a claim. Without this add-on, making a claim may reset your NCB to zero. With the add-on, you can protect part of your bonus. This ensures your sum insured continues to grow. In practice, this cover acts as a safety net. It also encourages policyholders to choose higher coverage without fearing the loss of benefits.

Is no claim bonus applicable for both individual and family floater policies?

Yes, the no claim bonus applies to both individual and family floater policies. For a family floater, the NCB is usually calculated based on claims made by any member. If no member claims during the policy year, the NCB is credited to the entire policy, increasing the sum insured for all covered members. This makes the health insurance no claim bonus especially valuable for families seeking long-term coverage.

Is no claim bonus offered by all health insurance policies?

Not all health insurance policies offer a no claim bonus. While most standard plans provide this feature, some specialised or critical illness policies may not. It is important to check the policy terms before purchasing. In practice, policies with NCB benefits offer more flexibility and long-term value, making them a preferred choice for many.

Difference Between No Claim Bonus and Cumulative Bonus

The table below shows the key differences between no claim bonus and cumulative bonus.