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How Does the NCB Benefit Work in a Health Insurance Policy?

Adhil Shetty
Image source: ijeab/Freepik

Q: How does the NCB benefit work in a health insurance policy? – Zohair

A: Health insurance providers reward you for not making a claim. If you didn’t make a single claim during the last policy year, your health insurance provider may offer you a No Claim Bonus for the next policy year by enhancing your coverage amount without charging an extra premium.

The extent of increase in the policy cover size under the NCB benefit varies from company to company. That being said, some health insurance companies allow a discount on the premium amount during renewal without disturbing the cover size.

The NCB benefit of an increase in the insurance policy cover size usually varies from 10% to 50% of the base cover. However, the NCB benefit lapses if you don’t renew your health policy within the prescribed deadline. So, renew your policy before the last date to enjoy the NCB benefit.

If you have accumulated NCB benefit from last several years and make a claim after that, then, depending on the terms and condition of your policy, you may lose the entire NCB benefit or it may get reduced by a certain percentage.

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