No Claim Bonus in Health Insurance

The above plans and premiums are for AED 1,000,000 Sum insured for 1 Adult of 30 Years for Dubai city.

Insurance providers offer a feature called the No Claim Bonus (NCB), which rewards you for maintaining a claim-free record. This means your effort to stay healthy doesn’t go unnoticed. With NCB, you can enjoy benefits like higher coverage or discounted premiums, so that your health insurance policy remains valuable even when you don’t make claims.

In this article, we’ll explore everything you need to know about the No Claim Bonus in health insurance, its benefits and how to make the most of it in the UAE. Let’s dive in!

What is No Claim Bonus?

The No Claim Bonus (NCB) is a benefit provided by health insurance companies to reward policyholders for not filing any claims during a policy year.

It incentivizes healthy living and reduces unnecessary claims. Instead of letting your premium payments feel wasted, the NCB provides you with additional value by increasing your coverage or offering discounts on policy renewals.

Key Features of No Claim Bonus in Health Insurance

Some of the key features of no claim bonus in health insurance are —

Incremental Increase in Coverage:

For every claim-free year, the sum insured under the policy increases by 10%, up to a maximum of 50% of the original sum insured. For instance, if your initial sum insured is AED 100,000, it can grow to AED 150,000 over five claim-free years.

Annual Basis Eligibility:

The NCB is applied annually, provided the policy is renewed continuously without any breaks. Renewal before the policy expiry or within the grace period is mandatory to retain the bonus

Capped Maximum Bonus:

The maximum NCB you can accrue is limited to 50% of the sum insured available in the renewed policy.

Forfeiture on Non-Renewal:

If the policy is not renewed on time or within the grace period, the entire accumulated NCB will be forfeited, meaning you’ll lose all accumulated benefits.

How Does No Claim Bonus Work in Health Insurance?

The No Claim Bonus rewards you by increasing your coverage or sum insured for every year you do not make a claim.

Let’s break this down with an easy-to-understand example —

Suppose you purchase a health insurance policy with an initial sum insured of AED 10,00,000. Your insurer offers a 10% no-claim bonus for every claim-free year, up to a maximum of 50% of the original sum insured.

Here’s how it works —

Year 1: Your policy starts with AED 10,00,000 as the total sum insured. Since you don’t make any claims during the first year, you are eligible for a 10% increase.
1st Renewal: The sum insured increases by 10% to AED 11,00,000. If you have another claim-free year, the bonus continues.
2nd Renewal: After another year without claims, your sum insured rises by another 10% to AED 12,00,000.
3rd Renewal: If you make a claim during this year, the No Claim Bonus will stop, and the sum insured remains at AED 12,00,000 for the next renewal.
4th Renewal: With no claims this year, the bonus resumes, and the sum insured rises to AED 13,00,000.
Maximum Limit: This process continues, but the bonus will not exceed 50% of the original sum insured. For this example, the maximum sum insured with NCB would be AED 15,00,000.

Policy Year	Total Sum Insured (AED) at the Start of the Year	No Claim Bonus (AED)	Claim Status in Policy Year
Year 1	10,00,000	-	No
1st Renewal	11,00,000	1,00,000	No
2nd Renewal	12,00,000	1,00,000	No
3rd Renewal	12,00,000	-	Yes
4th Renewal	13,00,000	1,00,000	No
5th Renewal	14,00,000	1,00,000	No
6th Renewal	14,00,000	-	Yes
7th Renewal	15,00,000	1,00,000	No

Benefits of No Claim Bonus

The No Claim Bonus offers several advantages for policyholders in the UAE. Here are the key benefits —

Financial Protection: With the bonus increasing your sum insured every claim-free year, you get a higher level of financial security.
Incentive for Healthy Living: The NCB encourages policyholders to maintain good health and avoid unnecessary medical expenses. This not only benefits your wellbeing but also helps you maximise the rewards from your insurance policy.
Cost-Effective Coverage: Even though you don’t claim, the NCB ensures your premiums don’t go to waste. By increasing your sum insured or offering renewal discounts, it makes your policy more cost-effective over time.
Cumulative Growth: In the UAE, many policies allow the NCB to accumulate over multiple years, with a maximum increase of up to 50% of the original sum insured. This gradual growth provides long-term value to policyholders.
Flexibility Across Policies: Some insurers in the UAE allow the transfer of accrued NCB benefits when you switch policies or insurers, so you don’t lose your rewards when upgrading your coverage.

What Happens to NCB If I Do Not Renew My Health Insurance Policy?

No Claim Bonus is a valuable feature, but it is closely tied to the renewal of your health insurance plan. If you do not renew your plan, here’s what happens to your NCB —

Complete Forfeiture of NCB: In the UAE, if you do not renew your health insurance policy before its expiry or during the grace period, you will lose all the NCB you have accumulated. This means all the benefits of higher coverage or renewal discounts will be forfeited and you’ll have to start from scratch with a new policy.
No Grace Period Beyond Policy Rules: Most insurers offer a short grace period for renewals (generally 30 days). If you fail to renew within this timeframe, your NCB will lapse permanently.

How Can You Get No Claim Bonus Benefit in the UAE?

Getting the No Claim Bonus benefit in the UAE is simple when you choose the right insurance provider and follow a few important steps. One of the best ways to access comprehensive health insurance plans with No Claim Bonus benefits is through Policybazaar.ae — a leading insurance platform in the UAE.

PB Advantage - Exclusive Benefits for Policyholders

Policybazaar.ae offers a unique feature called PB Advantage, which is included with most of its health insurance plans. Here’s how PB Advantage works —

Customised Plans: Policybazaar.ae allows you to compare and choose from a variety of health insurance policies that offer NCB benefits, so that you find a plan that meets your requirements and budget.
Renewal Process: The PB Advantage gives timely reminders and easy renewals, so you never risk losing your accumulated NCB due to missed deadlines.
Flexibility to Switch Plans: Policybazaar.ae makes it easy to transfer your NCB benefits when switching insurers, provided you renew your policy on time.
24/7 Customer Support: The dedicated customer support team addresses your questions regarding your health insurance policy, including NCB benefits.

Frequently Asked Questions

Can I claim NCB if I pay my premium late?

No, paying your premium late can lead to the forfeiture of your No Claim Bonus. Make sure that you renew your health insurance policy on or before the due date to retain the accumulated NCB.

Can minor outpatient treatments affect my NCB?

Generally, minor outpatient treatments like doctor consultations or diagnostic tests do not impact the NCB. However, this varies depending on the policy terms, so always confirm with your insurer.

Can I get NCB if I switch to a higher coverage plan?

Yes, if you switch to a higher coverage plan with the same insurer and maintain continuity, your NCB is often carried forward. However, the bonus may be recalculated based on the new policy terms.