Resources

NCB in Insurance - Meaning and Importance

https://indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2021/10/18/cliam_0.jpg?itok=HhCTjcsa

The term 'bonus' has a very pleasant connotation. When combined together, though, one would ask if these three words – No, Claim, and Bonus – have a similar impact. No Claim Bonus (NCB) in health insurance or NCB insurance is a reward for not filing a claim, and in itself, is an added benefit to the insurance.

The Meaning Of NCB Insurance

No claim bonus, or NCB, is a bonus amount that is added to the sum insured amount for each year without a claim. It's a type of incentive insurance firms give to policyholders who don't file a claim within a given policy period.

When purchasing health insurance, you should examine the 'No Claim Bonus' in addition to the policy premium, inclusions, exclusions, network hospitals, and claim settlement percentages.

NCB Insurance As An Add-On

An add-on is a further advantage that you may get for a fee. For example, if no claims were filed during the preceding policy period, the No Claim Bonus Add-on would enhance the bonus percentage at renewal.

It's worth noting that acquiring this add-on will raise the premium you'll have to pay. As a result, before purchasing the add-on, it is recommended that you carefully consider the premium, your health status, and the apparent benefit.

Why Is NCB Insurance So Important?

One of the most significant issues in the healthcare sector is the rate of inflation. To combat the rising cost of healthcare-related services, you'll need a health insurance policy with a No Claim Bonus. When you go a year without filing a claim on your policy, you can raise your sum insured in this way.

What Happens If You Make A Claim In NCB Insurance?

If you claim in a given year, the bonus amount you have accumulated as no claim bonus will be decreased by a little amount. It could, however, be a major setback for you.

For example, if you have an insurance policy with a sum insured of INR 2 lakh and do not claim for ten years, your total insured amount will be INR 3 lakh, assuming a 10% rate increase. However, if you file a claim in the eleventh year, the sum insured will be decreased by 10% when you renew the policy, bringing the total amount to INR 2.70 lakh.

You should keep in mind that you will be paid a bonus for every year that goes by without you filing a claim. So you'll get the bonus if you go a year without filing a claim after filing one. The NCB insurance is entirely dependent on the year in which you have made no claims. It's also crucial to note that the insurer can reduce your bonus amount if you make a claim, but the amount of your sum covered will not change.

There is no way to guarantee that you will receive the no-claim bonus from your health insurance. You cannot avoid filing a claim if you have a medical ailment or need hospitalization. You do, however, get a reward for every year you go without being sick or being admitted to the hospital. In the event of a catastrophic sickness or the need for medical treatment, you have no choice but to forego the incentive.

An Example- How Does NCB Insurance Work?

If Mr. Sumant purchases a health insurance plan with an amount insured of Rs. 5 lacs and does not file a claim in the first policy year, he would receive a cumulative bonus of 5% upon renewal, bringing his total sum insured for the next year to Rs. 5, 25, 000. Thus, instead of Rs. 5 lakhs, he can now claim up to this amount.

Similarly, if he does not file a claim in the second year, he will receive a cumulative bonus of 5%, which would result in a sum insured increase, bringing his total sum insured to Rs. 5,50,000. This incentive of NCB insurance might be worth up to 100% of the insured amount.

Bottom Line

The objective is only to claim when it is truly necessary. Making claims can damage your claim history, and insurance companies may raise your premium based on how frequently you file claims. If you don't make any claims, this indicates that you live a healthy lifestyle. Staying in shape is essential to avoid being ill and filing claims. Your no claim bonus or cumulative bonus will continue to grow to the point where it will cover you when you need it most.

Latest Reads

https://indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/06/17/data.jpg?itok=HvSPdkfp
Which Certifications Are Useful To Get A Job In Data Analytics?

It is well-known that today’s business world runs through data. Data is an essential asset for all organizations as it helps them optimize their performance and growth. Data analytics is gaining popularity day by day as it allows companies to reduce their costs by identifying more efficient ways...

Resources Education
https://indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/06/03/aaj-tak-campuss.jpg?itok=oYFS5vwD
Aaj Tak launches a platform to help students in skill development

Aaj Tak India’s no 1 news channel has launched 'Aaj Tak Campus' (ATC). It is a one-stop online guide for college admissions and competitive exams, offering creative solutions to students for career planning and skill-building.

Resources Education
https://indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/05/31/hand-writte.jpg?itok=aAkCSZaK
8 Daily Writing Habits of Successful Writers

All great writers have their secrets; there’s a reason they’ve gone through the whole creative process and achieved publishing success and recognition.

Resources Education
https://indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/04/30/jobs.jpg?itok=_z9pE7nz
Best Jobs For Indians In the USA

Everyone, no matter where he is, wishes to live a better life. The United States is a popular destination for international students, particularly Indians pursuing higher education since it offers a diverse range of work prospects in addition to a world-class education.

Resources Jobs
https://indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/04/04/img_04042022_162418_800_x_800_pixel.jpg?itok=bIiEj9BY
Actor Sajid Shaikh is now working on a web series that will be released in the coming months!!

Social media is a platform that not only entertains, educates, informs, and entertains people through video viewing but also by disseminating entertainment and knowledge. Sajid Shaikh is a Mumbai-based actor who was born on January 5, 2002. He has 3 million Instagram followers right now.

Resources Education
https://indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/03/26/img_26032022_162320_800_x_800_pixel.jpg?itok=0DcVSuaC
ImmigToronto is here to make your Canadian immigration 'hassle-free'

Canada is rightly known as a land of opportunities. It has a plethora of work opportunities for aspiring immigrants. With its multiculturalism, rich lifestyle, political stability, and tolerant policies, Canada has become a hotspot for newcomers.  Are you also making plans to settle in Canada? Do...

Resources Education
https://indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/02/18/capital.jpg?itok=uQWpi0yd
2022 Signals Success with the Advanced Management Program in Financial Services and Capital Markets from IIM Lucknow

IIM Lucknow has again managed to steal the limelight with its newly introduced Advanced Management Program in Financial Services and Capital Markets. The premier institute for management has made this programme available for professionals in middle-level management positions or the financial sector...

Resources Education
https://indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/05/trai.jpg?itok=UUyHqA4k
Trai asks Cable TV operators to withdraw legal notice

The Telecom Regulatory Authority of India (Trai) on Tuesday wrote to the Tamil Nadu Digital Cable TV Operators Association to withdraw its legal notice filed through Utkrishtha Law Agency seeking directions for pay channels not to inflate the prices of Cable TV channels.

Resources TRAI