Health & claims
What is the no claim bonus in health insurance?
A no claim bonus is a reward for a year without claims. Under IRDAI’s 2024 rules, insurers can offer it as a higher sum insured at no extra premium, called a cumulative bonus, or as a discount on your renewal premium. It carries over when you port your policy, and a claim can reduce it, but an insurer cannot single you out for having claimed.
In short
- A no claim bonus rewards a claim-free policy year.
- It comes as a higher sum insured or a lower renewal premium.
- It moves with you when you port your policy.
- Claiming can cost you that year’s bonus, never your cover.
What is a no claim bonus?
A reward for not claiming during a policy year. IRDAI’s May 2024 master circular lets insurers offer it as an increase in the sum insured or as a discount on the renewal premium. Where the increase is to the sum insured, it is called a cumulative bonus: more cover, with no increase in premium.
How much is the bonus?
It depends on the policy. Each policy sets how much the bonus adds for each claim-free year and the maximum it can reach. Read the bonus clause in your wording to see your policy’s figures.
What happens to the bonus if I claim?
You may lose that year’s bonus, but nothing more. An insurer cannot single you out at renewal for having claimed. The bonus is a reward, not a reason to avoid a genuine claim; never delay treatment to protect it.
Does the no claim bonus apply to company group health insurance?
Usually not in the same way. A group policy renews on the whole group’s claims experience, not on one person’s. Our page on why group premiums rise explains how group renewals work.
Does the bonus carry over if I switch insurers?
Yes. When you port a policy, the bonus travels with you as sum insured. Apply for portability before your renewal date so the credit carries over.
Frequently asked questions
What is no claim bonus in health insurance?
A reward for a claim-free year, given as a higher sum insured or a discount on the renewal premium.
What is cumulative bonus in health insurance?
An increase in the sum insured for a claim-free year, with no increase in premium.
Will I lose my no claim bonus if I make a claim?
You may lose that year's bonus, but the insurer cannot single you out for claiming.
What happens when you talk to us
A 20-minute video call with a Growth Advisor. No obligation, and no quote pushed. It opens with a five-minute video from our founder on how the benefits stack works and why Ethika exists; the rest is your questions. You’ll leave with an honest read on your current cover and claims experience, and a straight answer on whether we can genuinely help, even if you never become a client.
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A note on this page. Everything here is general information, not financial advice, and nothing is an offer. Rules are per IRDAI’s Master Circular on Health Insurance Products, 29 May 2024, at the review date. Your policy wording decides your bonus. For advice about your situation, talk to us.