Health Insurance With a No Claim Bonus: Types, Functions, and Benefits

Health Insurance With a No Claim Bonus: Types, Functions, and Benefits


Health is of paramount importance to ensure one’s well-being. Thus, having proper safeguards, such as emergency funds, is essential. An additional safety net against unanticipated medical costs is provided by a health insurance policy. However, many individuals may find healthcare insurance an add-on expense if they are unable to use it.

This is where the No Claim Bonus (NCB) feature comes in and can help you increase your coverage or reduce your premium for the health insurance policy in the next year. Now, one may wonder what is no-claim healthcare coverage. Read this article to get a detailed idea about the same.

What is a No-Claim Healthcare Insurance?

A no-claim healthcare insurance policy offers benefits such as a no-claim bonus or a premium reduction for the remaining policy term if the insured individual stays well and does not use the health insurance policy for medical expenditures.

What are the Types of No-Claim Healthcare Insurance?

There are basically two types of no-claim healthcare insurance. They are:

1. Discount on Premium

For each year that is claim-free, policyholders become eligible for a premium reduction. This encourages people to maintain their health. The discount often accumulates over consecutive claim-free years, leading to reduced premium payments.

2. Cumulative Bonus on Sum Assured

Another type involves a cumulative bonus on the sum assured. For every year without a claim, the insured amount increases. This means that if a person remains healthy and doesn’t use the insurance, their coverage grows over time, providing an added financial benefit in case medical assistance is needed.

How Does No-Claim Healthcare Insurance Work?

In a no-claim health insurance policy, the insured person receives certain benefits if they don’t make any claims during a specified period. In that case, they can enjoy certain advantages, such as a no-claim bonus or a reduction in the premium for the next policy term.

It rewards individuals for maintaining good health and not utilising insurance coverage, encouraging a proactive approach to health and well-being.

What are the Features of No-Claim Healthcare Insurance?

A no-claim health insurance policy has a number of features. Some of them are:

1. Discount on Premium

A policyholder may receive a premium reduction for each year they do not make a claim. Depending on the insurer, the discount percentage can vary according to the policy wording.

2. Increased Sum Insured

In times of growing healthcare expenditures, the NCB can enhance the sum insured, providing extra financial cover for a family’s resources.

3. Financial Safety net

The NCB helps ensure better financial protection for policyholders and their families during medical emergencies. By offering more coverage for less money, it decreases the cost of renewing health insurance in India.

What are the Benefits of No-Claim Healthcare Insurance?

No-Claim Healthcare Insurance offers several benefits. They are:

1. Portability and Transferability

No-claim benefits can enhance the portability of health insurance. Some policies allow policyholders to transfer their accumulated no-claim benefits when switching to a different insurance provider or upgrading their policy. This flexibility ensures the continuity of accrued benefits.

2. Hassle-Free Renewals

No-claim healthcare insurance policies often come with streamlined and hassle-free renewal processes. Since policyholders who haven’t made claims pose lower risks, the renewal process tends to be smoother, making it convenient for individuals to continue their coverage without unnecessary complications.

3. No-Claim Certificate for Future Insurance Needs

Accumulating a record of no claims often results in issuing a no-claim certificate. This certificate can be valuable when seeking new insurance policies, as it reflects a history of good health practices and responsible insurance use, potentially leading to better terms and conditions.

4. Flexibility in Choosing Hospitals

Selecting hospitals and healthcare providers is a flexibility many no-claim healthcare insurance policies offer. This allows policyholders to choose hospitals that best suit their requirements and preferences for care.


For those looking for comprehensive coverage and financial benefits, selecting health insurance with a no-claim bonus is prudent and advantageous. This best health insurance offers complete assistance for managing health and guards against unforeseen medical expenses.

Selecting the best health insurance companyis essential when managing the complexity of healthcare. As a dependable partner for health and wellness, Niva Bupa Health Insurance stands out for its commitment to client happiness and user-friendly platform. They offer the best health insurance policy in India. Their insurance plans offer coverage and help create a healthy future, and they are further boosted by a no-claim incentive.