No Claim Bonus (NCB) is the most effective way to beat the inflation rate in health insurance. Not only you can enhance the sum insured of your policy, but you also even don’t pay any extra from your pocket. So, if you haven’t availed any health insurance claim during a policy year, you must use the No Claim Bonus to enhance your sum insured, thereby enhancing the coverage of your health plan.
So, how does the NCB in health insurance work?
You buy health insurance to avail of its benefits in case of a medical emergency. So, if you fall sick and have no money to pay medical bills or you don’t want to use your savings, you can turn to health insurance. Under a health insurance plan, you pay a certain amount as a yearly premium to the insurance company to avail benefits of your health insurance. The insurer, in return, pays you compensation of the cost incurred in your health if you make a claim during the policy year. Now, suppose you stay healthy throughout the duration of the policy and didn’t make a claim on your health plan. What happens then?
Now understand this! If you do not make a claim during the tenure of your health plan, in that case you become entitled to an incentive called No Claim Bonus or NCB, which is also called a Cumulative Bonus. This bonus is awarded by the insurer to the insured for every claim-free year. Further, being cumulative, the NCB keeps accumulating with every claim-free year.
So, the policyholder can use this bonus to lower his/her policy premium rate at the time of renewal of the policy. Also, in case the insured does not want to make any changes in the policy premium, he/she can get the sum insured of the policy enhanced. There are also many other benefits that a policyholder can receive out of NCB or No Claim bonus. The best part is, you can avail NCB for both family floater and individual insurance policies.
Let’s take a look at some of the benefits of NCB for your Health Insurance.
Benefits of NCB in Health Insurance
- With NCB, the policyholder can guarantee an enhanced coverage for his/her family members.
- The policyholder can lower the premium amount at the time of renewing the policy. Thereby you get better protection at lower prices.
- It ensures loyalty of the insured towards the insurer as they stay with the same insurer for a long time.
- Also, it encourages insured individuals to stay healthy to avoid making a claim during the policy tenure and thus to receive further NCB benefits.
- Though the NCB is available with both individual and family plans, it is essential to know the NCB clause mentioned in your health insurance policy document before you purchase the plan.
NCB is a great way to attract policyholders to stay loyal to a policy provider or insurer. However, you must note that not all health insurance companies offer the NCB benefit. Thus, every policy provider mentions and emphasizes on the fact that the policyholder must read and understand the clause of the terms and conditions of the policy, so that they know what all to expect from it while making a claim.
To wrap it up, it is certain that the medical expenses in the present times are touching the sky. The better the facility and advanced equipment, the higher the charge Health Insurance of medical treatment. Thus, having a health insurance plan is of supreme importance for every individual and family without fail. By availing a No Claim Bonus, you can manage to reduce the premium of your health policy along with getting several other benefits. So, to ensure better coverage to you and your family as well as to secure everyone insured under your health plan against medical emergencies, it is important to use the NCB in the best possible way.
Just make it a point to read the policy document carefully and understand it. If you find it difficult to comprehend any special clause or feature, you must consult anyone with good knowledge on insurance or visit Paybima.com to know more about the various policies. Alternatively, you can also make a call to the customer care number of your insurer or email them to decipher the hidden clause and terms.