No-claim bonus in health insurance: All you need to know

economictimes.indiatimes.com:

However, as you age and are exposed to various health-related concerns, not only does the need for higher health insurance coverage arise, but also the need to pay more out of your pocket. But what if we tell you that you can increase the policy coverage every year without increasing your budget? Sounds interesting? If yes, you need to understand the concept of a no-claim bonus in health insurance

What is a no-claim bonus?

A no-claim bonus is a continuity benefit you receive from your insurer for spending a claim-free year in your policy period.

1. Cumulative bonus
As the name implies, in this NCB, the sum insured of the base plan is increased by a fixed percentage for every claim-free year. The maximum cumulative bonus you can receive varies with the insurer and can range between 50% and 100% for five consecutive policy years without any claims.

The increased sum insured does not come with an increased premium.

Example:
Suppose you have a standard health policy with ₹20 lakh coverage. The insurer states that for every claim-free year, they will increase the sum insured by 10%. You didn't raise any claim for five years in a row. Here are the details of your bonus.