When you get an insurance coverage policy, you spend some premium every single year to the insurer against the coverage provided. Within the policy year, if the have to have arises due to a economic loss, you raise a claim with the insurer and the insurer compensates for the economic loss incurred. This is ordinarily how an insurance coverage policy performs.
Ever wondered what if you do not make any claim in a offered policy year? Under two common insurance coverage policies – Health and Motor insurance coverage – if you do not make any claim inside a policy year, the insurer awards you with an incentive identified as NCB or ‘No Claim Bonus’. The NCB is provided to the prospects every single year offered they do not file any claim throughout the policy year. The No Claim Bonus is normally a reward that the insurer pays to the policyholder for not filing a claim in a policy year. It is also a way to reward the policyholders for their loyalty. Sometimes, supplying a No Claim Bonus is significantly more affordable than paying out for a claim that might run into lakhs.
Most importantly, the bonus that the insurer delivers is cumulative in nature and it keeps rising with every single claim-free of charge year. The provided bonus in case of well being insurance coverage can be availed in the kind of a discount on the subsequent policy premium, enhancement of sum insured with no any transform in the policy premium or other rewards like Gym, Spa, and Yoga subscriptions, or discount on wellness-associated solutions. Most importantly, NCB is applicable to each person as properly as family floater well being insurance coverage plans. If you have an person well being strategy and you do not make any claim all through the policy year, the insurer rewards you with a no-claim bonus. Similarly, if you have a family floater strategy and no one from the lives insured in the strategy tends to make any claim, the insurer right here also rewards a no-claim bonus.
The bonus provided by way of NCB is topic to each and every insurer’s terms and situations. While some insurers might enable enhancement of sum insured, some might present a discount on premium or discount on wellness solutions and services. While getting a well being insurance coverage strategy, do make sure to verify with the insurer the rewards provided below NCB. Earlier, most well being policies permitted the enhancement of sum insured by way of no-claim bonus up to a limit i.e. a maximum of 50%. However, there are now well being insurance coverage plans readily available in the market place that enable you to improve the sum insured by up to 200%. Say, for instance, Mr. Rohit – 30 – buys a well being insurance coverage strategy with Rs 5 lakh sum insured and for 4 consecutive years, he does not file any claim. Now, for every single claim-free of charge year, the sum insured of Rohit’s well being insurance coverage strategy will enhance by 50% i.e. Rs 2.5 lakh. After 4 claim-free of charge years, the sum insured of his well being insurance coverage strategy will enhance to Rs 15 lakh – an enhancement of 200%.
For now, this exclusive feature of a 200% enhance in sum insured by way of No-Claim Bonus is only readily available in Care Health Insurance’s Care Plus strategy. Another fascinating feature of Care Health Insurance’s Care Plus strategy is that it comes inside an inbuilt advantage named No-Claim Bonus Protection. Usually, if you have a well being insurance coverage strategy and in the policy year, even if you file a claim as low as 10% of the sum insured, the No-Claim Bonus is totally wiped out. However, with the No-Claim Bonus Protection feature, the no-claim bonus remains unaffected offered the claim quantity be up to 25% of the total sum insured.
Customers who are unhappy with their present insurer and want to port their policy to a much better insurer can even get the NCB transferred to the new insurer. However, to avail NCB rewards, one have to make sure to renew the well being policy inside the renewal date. Every insurer provides a maximum of 30-days grace period following the initial renewal date to the prospects to renew their well being policy. If the client fails to renew the well being policy even throughout the grace period, all the NCB rewards are lost and can not be ever revived.
With healthcare inflation increasing at a double-digit pace and the price of hospitalization and other healthcare expenditures touching the sky, it becomes crucial to have a well being insurance coverage strategy in location for any unforeseen situations. To beat healthcare inflation, No-Claim Bonus is a wonderful way to improve your sum insured with no paying something further from your personal pocket. So, keep match and healthful, and make the most of your well being insurance coverage strategy when have to have be.
(By Amit Chhabra, Head-Health Insurance, Policybazaar.com)