5 Things You Need To Know About NCB In Health Insurance

Posted by rohit khamkar on March 23rd, 2021

Health insurance can truly prove to be a boon in a medical emergency. With the backing of a health insurance policy, you can get access to the best medical treatment without worrying about the costs. And, the benefits of having health insurance do not end there. For every claim-free year, your insurer rewards you with a ‘no-claim bonus’ (NCB) on your health insurance policy. Thus, you enjoy financial benefits on your coverage whether you make a claim or not.

If you are not too aware of what NCB means for health coverage, don’t worry as you have come to the right place. Read on to discover 5 things you need to know about NCB in health insurance.

1.      The NCB may be cumulative or offered as a discount on the premium

Most health insurance providers offer the NCB as a cumulative bonus. This means that your sum insured gets bumped up by a certain percentage at no extra cost to you for every claim-free year. Now, some insurance companies might reward you with the NCB in the form of a discount on the premium that you have to pay for the same sum insured. It is advisable to ask your insurer about the details of how they give out the NCB so that you can choose the provider whose system best suits you.

2.      Cumulative bonus can go up to 50%

The cumulative bonus you receive for not making claims can go as high as 50%. This is a huge bump up on your sum insured that you receive for not making claims. Remember that the terms for the increase in cumulative bonus each year may vary between insurers.

3.      The NCB is applicable on family plans too

It is a known fact that the NCB in health insurance is applied on individual plans. However, most people are not too aware that this bonus is also valid for family floater plans. If no member insured makes a claim under the family health insurance policy, the family floater plan too gets the benefit of NCB for that year.

4.      The NCB is transferrable

If you decide to change over to a new insurance provider, you can usually transfer the benefits of your NCB too if you did not make a claim on your previous policy. Make sure to discuss the process of transferring the NCB with the new insurer before you buy their policy. Remember that the percentage of cumulative bonus or premium discount can vary between insurance companies.

 5.     The NCB lapses if your policy expires

If you do not renew your health insurance policy on time, your NCB expires too. So, make sure to always keep your coverage active. You can set a reminder on your smartphone to ensure that you do not miss out on the date of expiry of your health insurance. Most insurance companies also take an active interest in keeping policyholders informed of when their coverage is about to expire.

We hope this article has helped improve your understanding of the NCB in your health insurance policy. Take care and stay fit!

READ MORE :- 5 Things To Keep In Mind About Family Floater Health Insurance Plans