A Beginner's Quick Guide To Understanding NCB In Health Insurance


Your health insurance policy has a wonderfulfeature known as the no claim bonus or NCB. The NCB is a reward that is givenout for each policy year in which you do not make a claim. Sounds wonderful, doesn’t it? In this article, we will take you through an overview of thisbenefit in your health insurance as well as tell you some important things youneed to know about the NCB.  

How does NCB in health insurance work? 

When it comes to health insurance, judicious useis always rewarded. If you keep in good health and do not make any claimsduring a given policy year, you receive a benefit known as NCB. This benefit is usually handed out as a percentage of increase in your cover limit. Thisincrease happens at no extra cost to your health insurance premium.The percentage of increase can start at around 5% and go as high as a whopping 50%! 

Let’s look at an example of how NCB works 

Pooja has just taken a health insurance policywith a cover limit of Rs 3 lakhs. In the first year of her coverage, she maintainsher health and thus, does not make any claims with the insurer. As a reward for this, when she renews her plan in the second year, she gets a 5% increase on her basic sum insured. This means her new sum insured on her health insurancepolicy will be now Rs 3,15,000. She gets the extra Rs 15000 added at no extracharge. If she again does not make a claim in her second policy year, her suminsured will go up to Rs 3,30,000 and keep increasing each year until she makesa claim.  

Your NCB is portable 

You may decide to switch between health insuranceproviders if you find better coverage elsewhere at better costs. In this case,you would be glad to know that the NCB on your health insurance policy is portable. You will not lose your accumulatedbenefits simply because you have decided to switch between providers.  

However, do bear in mind that you need to keeprenewing your health insurance plan on time each year for your NCB to stayactive and accumulate. If you skip the expiry, date, you get a grace periodwithin which you can renew coverage. However, if you miss out on making therenewal during this grace period as well, you will lose the NCB.    

We hope that this article has improved yourknowledge of the NCB benefit in health insurance. As the costs of healthcarekeep on increasing each year, the benefit of NCB can actually help in savingyour money as you get more coverage at no extra cost to your premium. Do makesure to ask your insurance provider about their NCB policy today. Remember thatyou can easily renew health insurance online and stay continuously protectedagainst the heavy expenses of illnesses. Take care.  

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