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No Claim Bonus in Health Insurance

Features and Benefits of NCB in Health Insurance


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7.5% Discount
10% Discount

Your premium is Rs.

Above Premium includes 18% GST



Claim Settlement Ratio (OND 2018)


8100 +

Network Hospitals across 500 cities


400 Lacs+

Lives covered


What is No Claim Bonus?

No Claim Bonus is the bonus amount that you get from the insurer under your health insurance policy for not claiming during your policy tenure. It gets accumulated to the sum insured for every claim-free year. It makes you strong to face any medical emergency in the future and an incentive for being healthy.

Thus, no claim bonus in health insurance refers to the additional coverage that is provided by the insurer to the insured if no claim has been made by the insured party during the policy year. There are two types of no claim bonuses:

  • Discount on premium: It is generally given as a monetary bonus during the time of renewal.
  • Cumulative Benefit: Yearly increase in the sum insured in place of the no claim bonus. Typically, this is an additional 5% added to the sum insured.

How you can get No Claim Bonus?

It is estimated that medical inflation is rising at a rate of 15% every year. Healthcare services are skyrocketing, and it will be difficult to bear the medical costs in the coming future. In such a debilitating situation, no claim bonus in health insurance can be extremely helpful, and you can avail no claim bonus in two ways:

  • Cumulative benefits in the form of the higher sum insured
  • Discount on the premium amount

In both ways, you get financial security. However, the terms and conditions of your insurance policy may influence its amount.

For Example:

Assume that you have health insurance with the sum insured of Rs.5 lakh. You didn’t claim for the first year. In that case, your insurer offers you 5% of cumulative of no claim bonus with a maximum of 50%. So, the total sum insured after every claim-free year is:

  • For 1st Claim, Free Year Sum Insured = Rs.525000
  • For 2nd Claim, Free Year Sum Insured = Rs.550000 and so on.

Features of No Claim Bonus

If you are planning to buy health insurance and wondering on what factors you should take the policy, consider no claim bonus cover. You can read it's below features:

  • It is an incentive above the Sum Insured that will accumulate after every claim-free year.
  • If there is no claim in the first year then the insurer offers 5% extra on the sum assured.
  • In the case of family floater plans, all the members who are covered under the policy are entitled to no claim bonus.

Benefits of No Claim Bonus

It is an amazing benefit for every policyholder. However, different health insurance companies have different policies pertaining to no claim bonus. Yet, it has the following benefits:

  • The sum Insured even after multiple claims does not go below the original value.
  • No claim bonus encourages policyholders to remain hale and hearty.
  • It also lessens the cases of fraud or unnecessary claims.
  • The percentage of reward amount ranges from 5% to 10%, for every claim-free year.
  • No claim bonus benefits can be easily transferred during portability.

>> Check: Health insurance claim settlement ratio

When is No Claim Bonus Offered?

No claim bonus is offered to the insured policyholder when they are going to renew the health insurance policy. Insurers also offer no claim bonus during the term of the health insurance policy. There can be a boost in the sum insured, in the form of a bonus that cumulatively increases in value instead of the usual no claim bonus. Those companies that don’t offer a no claim bonus typically offer a rebate on the premium for renewal so that it can stand with the competition. Religare Health Insurance offers a no claim bonus of 10% to the sum insured, up to a maximum no claim bonus limit of 50% in 5 successive years.

No Claim Bonus is usually applied under the following conditions:

  • If a low-value claim is made by the insured individual, the No Claim Bonus is not forgone entirely. A fraction of the total sum reserved for the bonus will be deducted in proportion to the size of the claim.
  • Typically, if a policy is renewed within a period of 30 days of the due date for renewal, the No Claim Bonus can act as a discount of the payable premium for health insurance.
  • Moreover, should the insured want to shift health insurance policy providers, then the No Claim Bonus that has accumulated for the previous health insurance policy can be transferred to the new health insurance policy.
  • If the policyholder has a low claim record, he can get a rebate on the health insurance premium that needed to be paid, along with certain extra features in the policy.

In summary, a no-claim bonus is amongst the key features that you should consider before purchasing a policy. Insurance plans that offer substantial bonuses while imposing only minor penalties for low-cost claims can serve their purpose well and prove to be highly conducive to your needs.

The current medical inflation is affecting the healthcare industry immensely. Hence, if you want to save your hard-earned money and get the most out of your health insurance policy then stay fit and avail of no claim bonus. You can check the health insurance plans offered by Religare with no claim bonus reward. The plans not only fit your budget but also provide the additional cover for your healthcare needs.

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