No Claim Bonus Health Insurance : What is NCB in health insurance?

Posted on Jun, 2020

No Claim Bonus, often abbreviated as NCB, is a benefit that policyholders enjoy on their health insurance policy. NCB in health insurance is a reward that the health insurance company offers to policyholders for not filing an insurance claim during the term of their insurance policy. Depending on your insurance provider, no claim bonus may be awarded during the tenure of your insurance policy, or you may get an increase in the sum assured after the term has ended. In case the company offers no bonus, they may offer a rebate on the renewal premium.

For every claim-free year, the bonus amount gets accumulated. It is given to you as per the policy of your health insurance provider. This extra bonus that you get for not claiming the benefits of your health insurance policy can help pay for any additional medical expenses you may incur.

What are the types of No Claim Bonus or NCB in health insurance?

Typically, there are three main types of NCB that insurance companies give out. They are

  1. Cumulative bonus

    With this type of NCB, policyholders are offered a progressive increase in the sum assured. This increase could be a definite percentage of the sum insured, and for every claim-free year (up to 5 years), this percentage gets added to the final sum assured.

  2. Discount on renewal premium

    If your health insurance company does not offer a no-claim bonus, they will instead provide a discount on the premium you pay for the renewal of your health insurance policy. Discount on premium plans are beneficial for both policyholders and insurance providers. While the discount reduces the premium payments, it also enables insurance providers to retain their customers, thus making it an excellent incentive for both parties.

  3. Super No Claim Bonus

    In the recent years, a few health insurance companies have started offering Super No Claim Bonus through which the sum insured is doubled in just two years if you do not file any claim. In comparison, it takes five years to double the sum insured with a cumulative bonus. Policyholders may avail this feature by paying an additional premium.

Features of No Claim Bonus

Before buying a health insurance policy, it’s essential to know about their no claim bonus policy. Here are some features of NCB in health insurance that you should know about

  • Most insurance companies offer no claim bonus in the range of 5% to 10% for every claim-free year.
  • In case you wish to transfer your health insurance policy to another insurance provider (i.e. porting the insurance policy) you can transfer your accrued NCB benefit as well.
  • If you fail to pay the premiums within the grace period and your policy expires, your NCB benefit and the accumulated amount also expires.
  • The NCB that you are eligible to receive will be stated in your policy document.
  • If you have a family floater plan and no claims have been made by any member covered under the plan, the NCB benefit can be used by any of the family members covered under the family floater plan.
  • Waiting period on the bonus amount is applicable based on when it is accumulated

To understand this further here’s an example of NCB in health insurance.

Let’s assume Mr. Das has a health insurance policy with a cover of ₹200,000 and as per the NCB in his policy, he has been assured a progressive increase of 5% in the sum assured for every claim-free year. So, after the first claim-free year, the sum assured will be ₹210,000 and if the second year is claim-free too, the sum assured will increase to ₹220,000.

It is important to note that no claim bonus comes with a maximum benefit limit which varies across insurance companies. Every company sets a pre-determined annual increase in percentage, and the maximum NCB you can get is usually around 50% to 55%, depending on the insurance provider.

If you still have more questions about no claim bonus and its impact on your health insurance policy, or if you want to buy a health insurance policy that meets all your needs, visit us at