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Reduction in no claim bonus

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14 Jun, 2021 by  Dipak Jambusaria

If you are getting 50% no claim bonus on 5L policy ie ie 2.5L. Now if you make a claim of say 1L, reduction in bonus amount will still be 2.5L or it will be restricted to 1L.

Also if there is no claim there after further bonus will get addedd?

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Health Insurance

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14 Jun, 2021

Dear Dipak,


You have 2 questions. My answers are -


1) No claim bonus reduces by the same percentage points as it increases by i.e. if your policy gives you a 50% increase in Sum Insured for not making a claim in any year, the decrease is also by 50% on making a claim. It is not linked to the quantum of claim.


2) Yes, No Claim Bonus is again added to your policy next policy year if there is no claim.


Hope this answers your question.


Regards


Asad Akbar

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14 Jun, 2021
Dipak Jambusaria

Thanks

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19 Jun, 2021

Hey Dipak,


Think of No Claim Bonus as steps. For every claim free year, you move a step up. Every year that you don't claim, you go a step above, upto the limit of accumulation prescribed for NCB.


Now when you make a claim, think as if that year you are made to get down by one step. If you claim in 2 subsequent years, you are made to step down accordingly.


So if you claim 1 lakh, you are brought down by one step. Next year if you don't make a claim, you get a chance to go up one step.


Happy to answer if you have any followup queries.


Anuj

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