• All About No-Claim Bonus in a Health Insurance Policy

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    Health Insurance policies in India offer No Claim Bonus as benefit for not registering and availing the claim amount during the policy period. This bonus can be availed while renewing your health insurance policy. Most insurance providers in India offer No Claim Bonus to the insured during the policy tenure. Some insurance companies offer an increase in sum assured, in the form of a cumulative bonus, to replace this No Claim Bonus. Companies that do not offer a NCB often provide a rebate on the renewal premium in order to stand at par with its competitors.

    Things to Know About No Claim Bonus:

    Cumulative Bonus:

    The No Claim Bonus offered on a health insurance policy is usually in the form of a cumulative bonus. This is offered by insurers on indemnity based health insurance policies. This is offered to the policy holder under the following situations:

    • There is a progressive increase in the Sum Assured, by a value of at least 5%. This is the cumulative bonus accrued during one policy year in which no claim has been made by the insured. The cumulative bonus can be accumulated for a maximum period of 10 years.
    • The cumulative bonus that a policy holder is eligible to receive on his/her health insurance policy will be stated in the policy document.
    • The cumulative bonus can be applied to the sum assured for a 3-year period. This can help to renew the policy by the due date as well.
    • The cumulative bonus will expire if the person does not renew the health insurance policy by the due date.
    • The rate at which the sum insured is increased each year varies from 10% - 50%.
    • Claims made during overlapping periods of two health insurance policies will receive the benefit of the available sum insured and the cumulative bonus will not be reduced to zero.

    Low Value Claim:

    When the policy holder files a low value claim, he/she does not lose the entire No Claim Bonus. Only a small percentage will be deducted from the same.

    Cumulative-Bonus-in-Health-Insurance-Plans

    Renewal of Health Insurance Policy:

    The No Claim Bonus will also act as a discount on premium payable for the health insurance policy at the time of renewal. Generally, in order to avail this benefit, the policy should be renewed within 30 days of the due date for renewal.

    Transferability of the No Claim Bonus:

    The No Claim Bonus that has been accrued by the policy holder on a particular health insurance policy can be transferred to a new health insurance policy from another insurance provider. This can be availed at the time of renewing the policy.

    Disbursement of No Claim Bonus:

    The No Claim Bonus can be withdrawn at the rate at which it was provided on the policy document or it can be provided to the policy holder as a part of the sum insured after deducting the premium payable for the policy.

    Claim Settlement Ratio:

    Under Health Insurance, the claims which have not been settled are subdivided into – Claims Closed and Claims Repudiated. Claims closed are those which have not been paid out due to lack of follow-up or documentation offered by the policyholder. Closed Claims are generally not clubbed with the claims rejected by the insurance provider, thus this would not reflect in the claim settlement ratio projected by the company. As per existing regulations laid down by the IRDA, claims registered by a policyholder has to be settled within 30 days. This feature is added to the policy documents

    Claims during Overlapping Policy Tenures:

    If a claim has been raised at a time when two health insurance policy periods are overlapping, the sum insured that is available during both the policy periods can be availed. However, the sum insured that has been claimed during this period, will be reduced in the second overlapping year and will reflect on the premium at the time of renewal.

    Limitations of TPA:

    Third Party Administrators can only process a claim and cannot settle a claim. Settling a claim is the duty of the insurance provider only, at their discretion.

    Good Claim Record Incentives:

    By maintaining a low claim record, you can avail a rebate on premium as well as enhanced protection through the health insurance policy.

    Claims on Two Policies:

    When a claim is made on 2 policies, the sum insured is split among the two insurers equally. However, with the advent of the new IRDA guidelines, a policyholder can choose which insurer should settle his/her claim.

    Deduction in No Claim Bonus after Raising a Claim:

    Earlier, the IRDA guidelines on NCB for Health Insurance policies stipulated that once an individual files for a claim, he/she loses the entire No Claim Bonus accrued over the years. However, this norm was later changed to offer cumulative bonus to the insured who files for a low value claim.

    Example:

    Mr. Hritesh has availed a health insurance policy for Rs. 5 Lakh for a policy period of 10 years. The No Claim Bonus on this policy is 5% each year and the policy has to be renewed on the 11th year. The insured contracts an illness and is hospitalized in the 11th year. He files for a claim worth Rs. 50,000 out of the total sum insured of Rs. 5, 00,000 in order to meet his medical expenses. In the event of such as low value claim, the NCB of that year is deducted from the total No Claim Bonus accrued over 10 years. Therefore, the insured is eligible for 50% NCB and after deducting the claim registered in a single year (5%), he can avail a NCB of 45% in the 11th year.

    GST rate of 18% applicable for all financial services effective July 1, 2017.

    Disclaimer: Premiums may vary depending upon factors like age, location and prevailing taxes/GST.

    No Claim Bonus Reviews

  • Page 1 of 9 1 2 3 4 5
    • HDFC Ergo Health Insurance
      "Excellent insurance "
      0.5 5.0/5 "Blown Away!"
      I have taken Health Insurance with HDFC Ergo,the premium amount is 1153,The policy coverage amount is three lakhs including family members.I have no claim experience as its taken six months ago.The process is too simple, and easy they had finished within a day.
      Was this review helpful? 0
      , chennai
      Reviewed on Feb 10, 2018
    • Apollo Munich Health Insurance
      "Best insurance policy"
      0.5 5.0/5 "Blown Away!"
      I have taken this policy last three years ago.The premium amount is 10600 paid through Kotak bank credit card.This policy was taken 30 days ago.I have no claim experience till date.This policy is covered including the family members is three lakhs.
      Was this review helpful? 0
      , jaipur
      Reviewed on Feb 10, 2018
    • HDFC Ergo Health Insurance
      "Good policy"
      0.5 4.0/5 "Great!"
      I am having a health insurance with HDFC Ergo. It was taken by last January. The customer service was good. There was no claim experience till now and haven't used the cashless facilities. The policy coverage was 4,80,000 rupees. They deducting monthly around 600 rupees for the premium.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 02, 2018
    • United India Health Insurance
      "Best service"
      0.5 5.0/5 "Blown Away!"
      I have taken a Health insurance with United India Insurance.The premium amount is 6000 per annum.I have no claim experience with them,they had covered 100% cashless treatment.The policy is three lakhs including family members.I am happy using this insurance.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 02, 2018
    • Royal Sundaram Health Insurance
      "Need to improve customer service"
      0.5 1.5/5 "Bad"
      I have taken a Royal Sundram against my credit card ,they had deducted the premium amount without intimating,the premium amount is 2500 per annum.I have no claim experience with them,the policy coverage amount is three lakhs.They need to work on customer service is not transparent to the customers.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 01, 2018
    • ICICI Lombard Health Insurance
      "Good service"
      0.5 4.0/5 "Great!"
      I have a good experience with ICICI General Insurance,i have taken a health insurance .I need not pay a premium amount instead company does it for the employees,i get a policy coverage of three lakhs.I have no claim experience with them so far.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 24, 2018
    • Apollo Munich Health Insurance
      "Good Coverage"
      0.5 5.0/5 "Blown Away!"
      I have been using this Health Insurance for the 4th consecutive year now. I haven't had any claim experience until now with them. I have been paying a premium of Rs.17000 yearly for a coverage of Rs.15 Lakhs for me and my family. If I have no-claim experience for a year, they would increase the coverage for the next year.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 24, 2018
    • New India Health Insurance
      " Corporate health insurance"
      0.5 3.5/5 "Pretty good"
      I hold a health insurance with NEW INDIA ASSURANCE. Its a corporate insurance. I do get cashless treatment with few hospitals. There was no claim experience. There is free health check up for the family. The customer service and response is good.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 24, 2018
    • Universal Sompo Health Insurance
      "Best insurance policy"
      0.5 5.0/5 "Blown Away!"
      I have taken Health Insurance with Universal Sompo.The premkum amount is 3500 annually,the policy coverage amount is 1.5 lakhs.I have no claim experience with them.I pay my premium amount through online.I get best benefits holding this policy including the family members.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jan 23, 2018
    • Star Health Health Insurance
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken a Health Insurance with Star Health.The premium amount is 600 paid very month,it gets debited from my salaried account as i have registered for the same.The policy coverage amount is three lakhs.I have no claim experience with them.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 19, 2018
    • Royal Sundaram Health Insurance
      "Good service "
      0.5 5.0/5 "Blown Away!"
      I have taken Health Insurance with Royal sundaram Insurance.I have not paid my first premkum as yet as i recently purchased this insurance they had explained the scheme details and its taken through my company.The process was very simple and easy with them.I have no claim experience with them.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 12, 2018
    • Star Health Health Insurance
      "Best insurance policy"
      0.5 5.0/5 "Blown Away!"
      I have taken Health Insurance with Star health Insurance.The premium is 11,000 i pay it through online always i prefer paying it through online.I get a policy coverage amount for an amount of eight lakhs.I have no claim experience with them.I am totally happy with the service provided by Star Health insurance.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jan 11, 2018
    • Star Health Health Insurance
      "Better service"
      0.5 4.0/5 "Great!"
      I have taken Health Insurance with Star health insurance.The premium amount is Rs 2500 paid by cheque in a year.They respond on time and i have not faced any issues so far.The policy coverage amount is 2.5 lakhs.I have no claim experience with them.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 08, 2018
    • ICICI Lombard Health Insurance
      "Good & Convenient"
      0.5 4.5/5 "Excellent!"
      When I joined the company they offered me health insurance. The services are good with ICICI Lombard. I haven't used this cashless treatment but the coverage is good. I have no claim experience with them If I had any requirement need to raise a request then they will contact me.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Dec 30, 2017
    • Star Health Health Insurance
      "Good Health protection for my family"
      0.5 4.0/5 "Great!"
      I took family medical insurance from Star Health for four person. Yearly I make Rs. 11,500 hence they gave me the medical cover Rs. 9 lakhs. There was no claim experience because I took it before four months. Star Health provides cash less facility, I can avail this facility by using e card.
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 28, 2017
    • Royal Sundaram Health Insurance
      "Good policy"
      0.5 5.0/5 "Blown Away!"
      From ROYAL SUNDARAM GENERAL INSURANCE i have taken a health insurance. the premium amount is 3000 yearly. They do provide cashless treatment. The policy covers my family. i make my payment through credit card. I have no claim experience.
      Was this review helpful? 1
      , new delhi
      Reviewed on Dec 27, 2017
    • ICICI Lombard Health Insurance
      "Best service"
      0.5 4.0/5 "Great!"
      I have taken a Health Insurance with ICICI Lombard.The premium is debited from my salaried account.I have taken an insurance recently i have no claim experience with them.I pay a premium of 1200 every month.Th website is easy to understand and navigate.
      Was this review helpful? 0
      , jaipur
      Reviewed on Dec 27, 2017
    • Star Health Health Insurance
      "Good insurance policy"
      0.5 4.0/5 "Great!"
      I have a health insurance policy with Star from last 3 years and it is a good insurance policy to use. This policy has to be renewed every year and i pay a premium of Rs 5000 on yearly basis. I have not taken cashless treatments and there is no claim experience for this insurance. The coverage amount is 100% and i am okay with the benefits of this policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 19, 2017
    • Reliance General Health Insurance
      "Best insurance policy"
      0.5 5.0/5 "Blown Away!"
      I have taken a Health Insurance with Reliance.The premium amount is 3000 very low as compared to other i hold.The policy coverage amount is five lakhs.I have no claim experience till date.I get the best benefits comparatively.The payment does not through an ECS.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Dec 19, 2017
    • Star Health Health Insurance
      "Health insurance"
      0.5 5.0/5 "Blown Away!"
      I have taken health insurance from STAR HEALTH & ALLIED INSURANCE. The total policy amount is 7.5 lakhs. Its an yearly renewal policy. Yearly i have to pay 32000. I make the payment through cheque. Its a life time policy, There is no claim experience. Its also provide cashless treatment.
      Was this review helpful? 1
      , new delhi
      Reviewed on Dec 12, 2017
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