Sign In
Alert: Health Insurance now 18% cheaper! Following the GST Council’s 3 Sep 2025 ruling, health & life insurance premiums will be GST-free starting 22 Sep 2025.

What is No Claim Bonus in Health Insurance & Its Benefits

​​No claim bonus is an amazing benefit the policyholder can enjoy on his health insurance. No claim bonus or NCB in health insurance is bonus money added in the sum insured for every claim free year. It is like a reward that policyholder receives for not claiming on his health insurance. This article will help you to understand everything about no claim bonus benefit on health insurance.

What are the types of No-claim bonus?

There are two main ways through which the insurance companies give the advantage of no-claim bonus on their health insurances:

  1. Cumulative Benefit meaning higher sum insured.  
  2. Discount on premium.

In either way, you get better financial security at the times of medical emergency. No claim bonus is a way through which, insurers encourage their consumers to stay healthy and file claim only when it is necessary.

Most of the insurance companies in India offer the no-claim bonus benefit on their health insurance products. However, the terms of conditions of the respective insurance company influence the amount of cumulative bonus or discount on the premium. Mostly, insurance companies tend to offer a cumulative bonus with a significant increase in the sum insured for every claim free year with a set limit for the maximum amount. Generally, this limit is up to 50% on NCB.

How does NCB work in health insurance?

It is unlikely for the majority of policyholders to claim on their health insurances during every year after the purchase. Sometimes, the hospital expenses are affordable and you may choose to pay from your own pockets, which eventually makes you eligible for no claim bonus.

For example, assume you have a no claim health insurance​ with sum insured Rs. 4 lakhs. Your insurer offers you 5% of cumulative NCB in health insurance for every claim-free year with a maximum of 50%. Thus, the total sum insured available for you after every claim free year would be,

  • After a 1st claim-free year the sum insured= Rs. 4 lakhs 20 thousand
  • After a 2nd claim-free year the sum insured= Rs. 4 lakhs 40 thousand
  • After a 3rd claim-free year the sum insured= Rs. 4 lakhs 60 thousand​

As the limit for NCB in health insurance provided by your insurer is 50%, the total sum insured available for you becomes Rs. 6 lakhs. No-claim bonus enables you for maximum coverage with an increased sum insured amount every year.

Furthermore, the option of portability is applicable to NCB. This means the NCB you acquired for every claim-free year is transferrable to another policy with the same or different insurance.

How the no-claim bonus is beneficial?

The current rate of inflation is 10 to 12 per cent and is affecting effects on the health care industry. As a result, the cost of medical services is rising at a significant rate. In such times, having a no-claim bonus health insurance is like an aid because you get help at the time of actual need.

Relevant Links for Health Insurance

Health Insurance Plans | Health Insurance Plans For Family | Health Insurance For Senior Citizens | Medical Insurance Premium Calculator | Health Insurance For Parents | Critical Illness Insurance | Pregnancy Insurance | Personal Accident Insurance | Cashless Medical Insurance | Top Up Health Insurance | International Health Insurance | Group Medical Insurance Policy | Health Insurance For Kids | Individual Health Plans | Insurance For Disabled | Reliance Health Gain Policy | Arogya Sanjeevani Health Insurance | Reliance Health Infinity Insurance | Saral Suraksha Bima Policy | Hospi Care Insurance

Health Insurance for Locations

Medical Insurance In Bangalore | Health Insurance In Delhi | Medical Insurance In Chennai | Medical Insurance In Mumbai | Health Insurance In Pune | Medical Insurance In Kolkata | Health Insurance In Jaipur | Health Insurance In Noida | Health Insurance In West Bengal | Health Insurance In Chandigarh | Health Insurance Plans In Hyderabad | Medical Policy In Rajasthan

Disease-Specific Health Insurance

Lasik Eye Surgery Insurance | Diabetes Insurance | Dengue Insurance | Herpes Insurance | Adhd Insurance | Alzheimer Insurance | Heart Attack Insurance | Migraine Insurance | Typhoid Insurance | Appendicitis Insurance | Psoriasis Insurance | Eczema Insurance | Epilepsy Insurance | Pancreatic Cancer Insurance | Thyroid Insurance | Skin Allergy Insurance | Bone Fracture Insurance | Gangrene Insurance | Bone Cancer Insurance | Bladder Cancer Insurance