Understanding No-Claim Bonus Benefits in Health Insurance: Today, many people are interested in purchasing health insurance due to changing lifestyles, food habits, weather changes, increased pollution, and other factors that have increased the importance of health insurance.
It is safe to say that almost every family has health insurance. But do you know about the no-claim bonus benefits of this health insurance?
What is a No-Claim Bonus? No-claim bonuses are incentives insurance companies give to policyholders if they do not use the insurance until the next renewal after purchasing health insurance. These bonuses include cumulative bonuses and discounts on premiums.
Cumulative Bonus: If there are no claims in the first year, the insurance coverage will increase by 10 percent for the same amount when renewing the policy for the following year.
For example, if a policy of Rs 20 lakh was purchased by paying Rs 20 thousand and no claim was made during the first year, the insurance coverage will increase to Rs 22 lakh for the same Rs 20 thousand in the second year.
Here, the no-claim bonus is Rs 2 lakh (10 percent). The insurance coverage will continue to increase by Rs 2 lakh in the following years. These are called cumulative bonuses.
Discount on Premiums: If there are no annual claims, insurance companies also provide discounts on insurance premiums to policyholders, which can be availed at the time of renewal.
For example, if a health insurance policy of Rs 20 lakh was purchased with a premium of Rs 20 thousand and no claim was made in the first year, the premium will be reduced by 10 percent to Rs 18 thousand for the next year, while maintaining the Rs 20 lakh coverage. This 10 percent discount will continue for subsequent years, subject to the rules.
Remember: Minor claims can result in losing health insurance benefits, so avoid using health insurance for seasonal diseases like colds, coughs, fevers, etc.
Only use insurance in case of significant problems. It’s also essential to purchase insurance when you are healthy, as benefits may be affected if health issues like high blood pressure and diabetes are later disclosed.
Always disclose all relevant information when purchasing health insurance and pay premiums regularly, as hiding the truth can lead to trouble. No-claim bonuses apply to Family Floater Plans and Individual Health Insurance as well.