No Claim Bonus – Different Types of NCB in Health Insurance Policy

The discovery of numerous diseases, high medical inflation of 14%, and people not being healthy are why having health insurance is really important. Health insurance doesn’t just help with money when you have an accident or illness. It also gives other good stuff and rewards too. Your health insurance can give you a bonus if you don’t need to use it for medical stuff. You might know about the bonus you get if you don’t use your health insurance, but did you know there are different kinds of bonuses in health insurance?

Read on as we discuss all about no-claim bonus health insurance, its types, and how it can help you cut back on your health insurance premiums.

What is No-claim Bonus in Health Insurance?

NCB, or No Claim Bonus, in health insurance, is a special feature that helps people who don’t ask for money from their insurance during the year. In simple words, if you don’t ask for money from your insurance while you have it, you can earn a No Claim Bonus (NCB). This bonus offers them a discount on their upcoming premium, so they pay less when it’s time to renew their insurance. The no-claim bonus helps you get more from your health insurance, even if you don’t use it to get money for medical stuff. It doesn’t just make paying for health insurance easier, it also gives you more coverage.

Types of NCB in Health Insurance

Let’s talk about the two main types of NCB, also known as health insurance no-claim bonus.

  • Cumulative Bonus

First, let’s learn what is cumulative bonus in health insurance. Some insurance companies give you a bonus in health insurance when you don’t ask for money from your policy in a year. They increase the sum insured of your policy by some percentage. Depending on how much coverage you have and the highest bonus you can get, you can typically get an increase of 5% to 50% of your base sum insured.

Let’s check out an example to understand what the cumulative bonus means in health insurance. Radhika, a 29-year-old software engineer, has a family floater health insurance plan. The insurance plan for ₹10 lakhs covers her, her husband, and their 3-year-old daughter. Radhika doesn’t ask for any money from her insurance in the first year, so her insurance company gives her a 10% increase in the coverage amount. This extra coverage is also known as a cumulative bonus or a family bonus. This way, Radhika gets to increase the claim amount of her policy.


Year Cumulative Benefit Sum Insured
Year 1, the year of policy purchase - ₹10,00,000
Year 2, the first claim-free policy year 10% ₹11,00,000
Year 3, the second claim-free policy year 20% ₹12,00,000
Year 4, the third claim-free policy year 30% ₹13,00,000
Year 5, the fourth claim-free policy year 40% ₹14,00,000
Year 6, the fifth claim-free policy year 50% ₹15,00,000

Note: These examples are just rough estimates. The real discounts might be different depending on the specific insurance plan you have.

When Radhika got the policy, her claim was ₹10,00,000. But after a few years, it went up to ₹15,00,000. Keep in mind that each company has different rules for how the cumulative bonus works. Make sure to ask your health insurance company about this.

  • Premium Discount: Under this NCB type, your insurance company gives you a discount on what you’ll pay for your next premium. If you do not make a claim during the policy year, your premium amount decreases, but the amount you can claim stays unchanged. 

    For example, when you buy the policy, you pay ₹15,000 for the coverage. If you don’t make any claims during your insurance period, your insurance company will give you a 10% NCB. When it’s time to renew, instead of paying ₹15,000, you’d only need to pay ₹13,500.

    Keep in mind that many things affect how much you pay for health insurance. Even though the NCB lowers the premium, there might be extra expenses connected to the insurance.

Things to know about No-claim Bonus in Health Insurance Policy

  • Although many health insurance companies give an NCB to their customers, it’s not something they have to do. Your insurance company might give you a bonus for not making a claim, or they might not offer this bonus.
  • How much discount the NCB will fetch you, or the no-claim bonus limit is also specific to your health insurance policy.
  • Most insurance companies give you money as a bonus if you don’t claim, but some plans offer bonuses through wellness programs instead. With these plans, you might or might not get a discount on what you have to pay for your insurance.
  • Many health insurance companies give bonuses like NCB and cumulative bonuses for both family plans and individual health insurance.
  • Unlike the no-claim bonus in car insurance, you can move your health insurance with this bonus to a new insurance company when you switch.
  • Your health insurance policy is there to help if you or someone covered by the policy needs medical treatment. But when you need to ask for money from your insurance, take some time to think about your choices. Compare the cost of hospitalization with the discounts you can expect in the upcoming years. Sometimes, it might not be the best choice to ask for money from your insurance.

Note: Make sure to read your policy document carefully and ask your insurance company about the bonus you might get for not asking for money.


No-claim bonus offers a discount on premium renewal, encouraging individuals to stay healthy and minimize claims, ultimately saving money while maintaining coverage for unforeseen medical expenses. It is an additional enhancement to the financial protection offered by health insurance policy. This bonus encourages staying healthy and using insurance for big needs, not small ones when you really need it for urgent medical stuff.