Health Insurance: How No-Claim Bonus Saves You Money


Health insurance is becoming increasingly popular due to rising health issues. One benefit of health insurance is the no-claim bonus, which offers various advantages.

A no-claim bonus is an incentive insurance companies provide to policyholders who do not make any claims during the policy period.

This bonus can result in benefits such as a cumulative bonus and premium discounts. It is important to note that while some policies only offer individual coverage, family floater policies provide coverage for all family members.

The cumulative bonus increases the coverage amount if the policyholder makes no claims. For example, the annual premium is Rs.10,000.

In that case, the coverage is Rs.6 lakh, and the insurance company offers a 5% no-claim bonus for every claim-free year. The coverage amount will increase based on consecutive claim-free years.

Another benefit is premium discounts. Insurance companies offer these discounts to policyholders if no claims are made every year. These discounts can be availed of at the time of renewal.

It’s crucial to bear in mind that not all insurance policies include the no-claim bonus, and the rules and conditions for its application can vary from one insurance company to another. Understanding these rules thoroughly before purchasing a policy is of utmost importance.

Finally, it’s absolutely essential to disclose all health issues when purchasing insurance. Failure to do so could lead to complications in the future.

For instance, minor health needs may not entitle you to benefits in the event of a significant accident, and benefits may not be available if health issues like high blood pressure and diabetes are not disclosed at the time of purchase.

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