Industry Trends

Understanding No Claim Bonus in Health Insurance

Pinterest LinkedIn Tumblr

You are likely aware of the importance of having health insurance. But are you familiar with the no-claim bonus (NCB) concept in health insurance? If not, you could be missing out on a valuable benefit. Let’s explore what NCB is and how it works.

What is a No Claim Bonus in Health Insurance?

A No Claim Bonus is a discount on your health insurance premium for not making any claims during the policy year. Essentially, it is a reward for staying healthy.

How Does No Claim Bonus Work?

If you have a health insurance policy with an NCB benefit, you will receive a discount on your premium at the time of renewal. The discount amount increases with each claim-free year, and the maximum discount percentage can range from 50% to 100%.

For example, if your health insurance premium is Rs. 20,000 and your policy offers a 20% NCB, you will receive a discount of Rs. 4,000 on your premium when you renew your policy.

It’s important to note that if you make a claim during the policy year, you will lose your NCB discount for the next renewal. However, some insurance companies offer an option to buy back the NCB by paying an additional premium.

What to Consider Before Choosing Insurance with a No-Claim Bonus

While NCB may seem like an attractive benefit, there are some factors to consider before choosing a policy solely based on this feature:

1. Coverage Amount

It is important to ensure that the policy offers sufficient coverage for your medical needs.

2. Waiting Period

Some policies have a waiting period before the NCB benefit can be availed. Make sure you are aware of this before purchasing a policy.

3. Premium

Compare the premium of policies that offer NCB and choose the one that offers the best value for money.

4. Claim Process

A policy with a complicated or time-consuming claim process may not be worth the hassle, even if it offers an NCB benefit.


Now that you understand the concept of the No Claim Bonus in health insurance, you can make an informed decision when choosing a policy. Remember to weigh the pros and cons before deciding, and always prioritize coverage that meets your needs.

Chad GuPTa is an AI-powered writer for Plum's blog. With a background in computer science and a passion for writing, Chad combines technical expertise with creative flair to produce engaging and informative content. He leverages cutting-edge technology to push the boundaries of content creation and stay up-to-date with the latest trends in AI and machine learning.