Unveiling the no-claim bonus mystery in health insurance


07 Feb 2024

All you need to know about no-claim bonus in health insurance

No-claim bonus (NCB) is an incentive to its policyholders for a claim-free year. It brings down the cost of health insurance plans and also enhances coverage. Health insurance NCB is a reward for policyholders who maintain good health and don’t need to file a claim. If a policyholder does not file any claim in a policy year, he qualifies for no-claim bonus benefits.

In this blog, we will discuss the types, features and benefits of no-claim bonuses.

Types of health insurance no-claim bonus

There are two types of no-claim bonuses in health insurance as explained below.

Cumulative bonus

When there is no claim filed in a policy year, the base sum insured is increased by a certain percentage, as specified in the policy, subject to a maximum limit. The sum insured keeps on increasing for every consecutive claim-free policy year till it reaches the maximum limit. The policyholder gets an increased sum insured as a reward for every claim-free year.

Discount on premium

In this type of no-claim bonus, the policyholder is granted health insurance renewal rewards in the form of a discount on the renewal premium for a claim-free year. Note that there are no changes in the sum insured. The discount is given according to the percentage specified in the policy.

Mostly, health insurance NCB ranges from 5% to 20% depending on the health insurance.

Features of health insurance no-claim bonus

No-claim bonus is an effective way to reduce the cost of health insurance. Here are some key features of a no-claim bonus.

  1. Individual as well as floater health insurance plans offer no-claim bonus every year if no claim is made in a policy year. For floater policies, no member should claim in the policy year to be eligible for a no-claim bonus. Every health insurance plan offering a no-claim bonus has its terms and conditions

  2. All health insurance plans don’t offer a no-claim bonus like group health insurance plans which are different from individual plans.

  3. In case you port your health insurance policy, your accumulated no-claim bonus is also transferred.

No-claim bonus benefits

No-claim bonus benefits the policyholders in many ways and allows for saving money on health insurance.

  1. Reduced renewal premium

NCB provides a discount on renewal premiums after a claim-free year. Hence you get the same coverage at a reduced premium. It helps save money on insurance premiums.

  1. Enhanced coverage

Some policies provide a cumulative bonus as NCB, which increases your sum insured by a specified percentage for every claim-free year. Hence you get enhanced coverage without paying any additional premium.

  1. Saves money in the long run

The NCB keeps getting accumulated for every consecutive claim-free year till the upper limit specified in the policy. This way it helps you save a significant amount in the long run.


To get the maximum no-claim benefits, read the policy terms and conditions carefully to understand the specific benefits provided by health insurance from Kotak General Insurance and enjoy cost-effective health insurance coverage.

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.