Overview
A No-Claim Bonus (NCB) is a fantastic perk that a health insurance policyholder should take advantage of. In health insurance, NCB is sum applied to the amount covered for any year without a claim. It’s similar to a pay-out given to a policyholder for not filing a claim on his health insurance. Read below to learn about what you need to know about the No-Claim Bonus benefit on health insurance.
What Are The Types Of No-Claim Bonus?
There are two key forms in which insurance providers offer No-Claim Bonuses on their health insurance policies:
- Cumulative benefits.
- Discounted premiums.
In these cases, you will have more financial protection in the event of a medical emergency. NCB is a way for insurers to allow their customers to remain safe and only file claims when absolutely necessary. The NCB option is offered by the majority of Indian insurance providers on their health insurance plans including Bajaj Allianz Health Insurance. The size of the net incentive or discount on the premium is, however, influenced by the terms and conditions of the respective insurance provider. Typically, insurance providers will give a cumulative benefit in the form of a substantial increase in the amounts insured for each year without a claim, with a maximum amount set. On NCB, this cap is usually set at 50%.
How does NCB work in health insurance?
- The majority of policyholders are unable to make a claim on their health insurance any year after purchase. Occasionally, hospital bills are manageable, and you can opt to pay out of pocket, making you eligible for a No-Claim Bonus.
- Assume you have a no-claims health insurance policy with an amount insured of Rs. 4 lakhs. Your insurer will pay you 5% of your total NCB in health insurance for each year you go without filing a claim, up to a limit of 50%. As a result, the total amount insured available to you for each year of no claims will be:
- The amount insured after the first claim-free year is Rs. 4 Lakhs 20 thousand.
- After a second year with no claims, the amount insured equals Rs. 4 Lakhs 40 thousand.
- The amount insured after the third claim-free year is Rs. 4 Lakhs 60 thousand.
- Since your insurer’s NCB cap in health insurance is 50 percent, the total amount insured available to you is Rs. 6 Lakhs. Every year, your NCB allows you to get more coverage with a higher sum insured number. Furthermore, NCB is eligible for the portability option. This means you can move the NCB you earned for each claim-free year to another policy with the same or different insurance.
How is the No-Claim Bonus advantageous?
The current rate of inflation is between 10% and 12%, which is having an effect on the health-care industry. As a result, medical facilities are becoming more expensive. Getting No-Claim Bonus health insurance is like having a lifeline in these situations so you get support when you really need it.
Wrapping Up
Bajaj Allianz Health Insurance plans on Finserv MARKETS provides a wide range of health insurance plans with the aid of health insurance premium calculator, from individual to group coverage. Customers can shop for health insurance plans on the Finserv MARKETS website, which offer a simple application process and low premiums. Getting a policy through Finserv MARKETS is a stress less process because it is done electronically, meaning that you have the coverage you need when you need it.
