Once you buy a medical insurance coverage, you pay the premium as per the coverage phrases to the insurance coverage firm. In return, when you or every other member of the family lined underneath the coverage wants hospitalisation throughout the coverage interval, you elevate a declare, and the insurance coverage pays the invoice. That is how a typical medical insurance coverage works.
Nonetheless, have you ever puzzled what occurs to the sum insured or the protection quantity when you don’t elevate a declare in a given coverage yr? In such a scenario, the insurance coverage firms could reward you with an incentive often called the No Declare Bonus or NCB.
The NCB is obtainable to the medical insurance policyholders on the finish of yearly upon coverage renewal, supplied they don’t file a single declare throughout the interval. The NCB is basically a reward that the policyholders obtain for his or her loyalty in the direction of the insurance coverage firm. NCB advantages are relevant for particular person medical insurance plans and household floater insurance policies.
One of many vital options of the NCB in medical insurance plans is that it’s cumulative in nature. This implies the reward retains rising after each claim-free yr. Usually, the insurance coverage firms in India provide NCB in two methods. And, as a policyholder, it’s possible you’ll select the way you wish to obtain the reward.
For each claim-free yr, you may avail NCB advantages and get the premium lowered for the following yr, or you may improve the sum insured quantity by a particular proportion. Some insurance coverage firms additionally provide NCB within the type of annual subscriptions or reductions on fitness center membership, spa, or yoga lessons.
Though your medical insurance protection could improve for each claim-free yr, there’s a most to it. This often ranges between 50% to 100% of the unique sum insured quantity. Additionally, the phrases and situations and the proportion by which the sum insured will increase yearly differs from one insurance coverage firm to a different.
Allow us to perceive this with an instance.
Assume that you’ve bought a medical insurance coverage with a sum insured of Rs. 2 lakhs, and your insurance coverage firm permits a most of fifty% improve. This implies your protection quantity could improve by one other Rs. 1 lakh, i.e., the sum insured could change into Rs. 3 lakhs.
In case your insurer gives NCB within the type of a reduction on premium, your premium could scale back by a particular proportion for each claim-free yr, though the protection quantity stays the identical.
Allow us to proceed with the above instance. You pay a premium of Rs. 10,000 for a coverage of Rs. 2 lakhs, and the insurer gives a 5% low cost on the premium as NCB for each claim-free yr. On this case, if you don’t file for a single declare throughout the coverage interval, you’ll have to pay a premium of Rs. 9,500 within the subsequent yr upon coverage renewal.
Whereas most medical insurance firms provide NCB to the policyholders, the profit could not apply to all plans. Whereas shopping for a medical insurance coverage, NCB is a essential issue that you need to contemplate because it means that you can improve the sum insured or get a reduction on the premium.
Within the purview of the rising medical inflation and value of hospitalisation bills, NCB is a good way to spice up your medical insurance cowl at no further price. So, keep match, keep away from submitting a declare and get probably the most out of your well being insurance coverage plan.