Health insurance: No claim bonus in insurance is not an unknown concept for policy holders. However, its benefit varies from company to company In general insurance, annual premium goes down while in health insurance, one’s premium remains the same but the sum assured increases from around 5 per cent to 20 per cent. However, it doesn’t mean the sum assured in health insurance plan will continue to grow till there is no claim. According to experts, cumulative no claim benefit leads to rise in sum assured to maximum 100 per cent. So, in short, no claim bonus in health insurance helps the policy holder double one’s sum assured.
Speaking on the no claim bonus in health insurance Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, “In health insurance plans, if there is no claim, then the insurer gives policy holder luxury to get its sum assured increased. This sum assured increase can be from a minimum 5 per cent to maximum 20 per cent per annum. However, unlike auto insurance, there is no reduction in annual premium as no claim bonus in health insurance.”
On how much one’s sum assured can grow under the no claim bonus in health insurance SEBI registered tax and investment expert Jitendra Solanki said, “There is a cap on increase in sum assured under no claim bonus in health insurance as the company don’t allow it to grow beyond certain limit. In the case of no claim, the sum assured can maximum grow by 100 per cent means one’s sum assured in the health insurance can double as cumulative no claim bonus.”
Listing out other benefits of no claim bonus in health insurance Kartik Jhaveri of Transcend Consultants said, “In health insurance, people do port their plan from one insurer to other. In the case of port too, the no claim bonus will carry forward along with pre existing disease benefits.”
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