SACHA ADVICE. ACHA ADVISOR.
back arrow Back

Reduction in no claim bonus

reply Share
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?

like like
0
Health Insurance

3 Answer

Post
14 Jun, 2021
Self Employed - Digital Consultant

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

like like
0
icon-comment 0 Comments
icon-reply Reply
14 Jun, 2021
Dipak Jambusaria

Thanks

like like
0
icon-comment 0 Comments
icon-reply Reply
19 Jun, 2021
Co-founder, SureClaim

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

like like
0
icon-comment 0 Comments
icon-reply Reply

Tired of dealing with call centers!

Get a professional advisor for life!

LIFETIME FREE

Rs. 1799

or

Discover the best tips for insurance every week!

Beshak is not regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and does not have any alliance or association with any Insurance business.
© Copyright 2023 Beshak Solutions Pvt. Ltd. All Rights Reserved.

Disclaimer: The content on the website is purely for information purposes for the public at large, and does not constitute personal financial advice for a specific individual reader.
If you are reading this, it means you love reading the fine print. Why not get paid for what you love doing - Join us by writing to info@beshak.org now 🙂