No Claim Bonus in Health Insurance

Q: What is No Claim Bonus in Star Health Insurance?

In policies like Star Comprehensive , the NCB is a reward for staying claim-free during a policy year. If you don’t make any claims, Star increases your sum insured at renewal by a fixed percentage (as per your plan’s terms), without charging extra premium for that added cover.

Quick Overview

A No Claim Bonus (NCB) in health insurance is a reward for completing a policy year without making any medical claims. Officially, IRDAI recognizes a no-claim bonus offered either by increasing the sum insured (cumulative bonus) or offering a premium discount, based on the policyholder’s choice. NCB builds up over consecutive claim-free years, up to a limit set by the insurer, encouraging healthy habits and fewer claims.

Staying healthy shouldn’t just feel good; it should pay off, too. So, what exactly does the no-claim bonus mean in health insurance? This guide helps you to understand how NCB works, its types, benefits, and limitations.

What is No Claim Bonus in Health Insurance?

If you stay healthy and don’t make any claims in a policy year, the insurer rewards you with a No Claim Bonus. This means your sum insured (SI) can increase at renewal (for example, by 50% each year) without raising your annual premiums.

This bonus keeps adding up until it reaches a fixed limit, such as doubling your original health cover (100% of the base sum insured or more). Insurers offer NCB to promote healthy living and responsible use of the policy, while giving you added protection when you need it most.

How Does No Claim Bonus Work in Health Insurance?

If the insured makes no claim in the first policy year, they either receive a premium discount or an increase in SI.
If your health plan remains claim-free in the second year as well, the discount or increase in SI applies again and may continue to rise in the same manner for every consecutive claim-free year.

Example

Policy Year	Total Sum Insured
Year 1	₹5,00,000
Year 2	₹6,00,000
Year 3	₹7,00,000
Year 4	₹8,00,000
Year 5	₹9,00,000
Year 6	₹10,00,000

Note: The calculations are based on a sum insured of ₹5 Lakh with an NCB of 20% added for every claim-free year. This bonus of ₹1 Lakh each year increases your total coverage without any extra cost, up to a maximum limit of 100% of the base sum insured.

Types of No Claim Bonus in Health Insurance

Type	Application	Example
Cumulative Bonus (CB)	This increases your sum insured (the maximum amount your insurer will pay) without charging any extra premium.	Care Supreme offers 50% of Base SI per year, up to 100% of Base SI (Regardless of claims)
Discount on Premium	A reduction in your renewal premium if you haven’t made any claims during the previous policy year.	TATA AIG Medicare Select offers an option for both an increase in SI and a discount on premiums

Features of No Claim Bonus in Health Insurance

Grows Every Claim-Free Year: NCB increases your cover for each year you don’t make a claim. Insurers usually add a fixed percentage, such as 10% or 20% of the base sum insured, every claim-free year.
Boosts Cover Without Raising Premium: NCB increases your total sum insured without charging extra for the bonus portion. Your premium may still rise due to age or medical inflation, but the added NCB cover itself is usually free.
Has a Maximum Cap: Most policies limit NCB growth to a fixed percentage of the base sum insured, commonly 50% to 100%. Once this cap is reached, the bonus stops growing even if you remain claim-free.
Claim Can Reduce or Reset It: If you make a claim, the accumulated NCB is usually reduced or reset at renewal. Many insurers offer an NCB Protection add-on that lets you retain your bonus even after making a claim.
Doesn’t Transfer Directly When You Switch Insurers: When you port your policy, the NCB does not move as a “bonus” to the new insurer. However, most insurers allow you to increase your new base sum insured up to your old base plus earned NCB, often without fresh waiting periods, treating it as continuous coverage.

Take Note: Some policies, like Star Comprehensive, follow a clawback rule, where the earned bonus is reduced if a claim is made. The reduction is always calculated on the base SI, not on the total coverage.

If you made a claim, your earned cumulative bonus may be reduced at the same rate it was added. For example, if your bonus increased by 20% each year, a single claim could cut it by 20% at renewal. Today, many modern plans like Star Comprehensive don’t reduce the bonus after a claim, or they offer add-ons that protect it from being reduced.

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Did You Know?

Insurers also offer an enhanced version of the no-claim bonus (increase in SI version) called renewal or loyalty bonus, where the SI increases regardless of claims made by renewing your health policy.

Benefits of No Claim Bonus in Health Insurance

Stronger Financial Buffer

As your sum insured increases with NCB, you build a bigger safety net for future medical emergencies. This extra cover becomes especially valuable as healthcare costs rise and the risk of serious illness grows with age.

Works for Both Plan Types

NCB applies equally to individual and family floater policies. Whether the cover is for one person or the whole family, the bonus boosts your overall protection in the same way.

Can Be Shielded with Add-ons

Many insurers offer an NCB protection or waiver rider. This lets you keep your accumulated bonus even after making a claim, so your hard-earned coverage increase isn’t lost.

Rewards Long-Term Policyholders

Since NCB grows every claim-free year, it encourages you to stay insured and renew consistently. The longer you continue, the higher your effective cover becomes, without paying extra for it.

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Ditto’s Take on No Claim Bonus

Choosing a health insurance plan with a No Claim Bonus is a smart move because it boosts your cover every claim-free year without increasing your premium. You get more protection at the same cost.

NCB is especially useful in family floater plans, where one big hospital bill can drain the sum insured quickly. Remember, NCB does not replace the need for a strong base cover. In our view, you should still start with an adequate sum insured of at least ₹15 to ₹25 lakh as this usually strikes the best balance between affordability and coverage.

If you are looking for a health plan from established insurers, we recommend comprehensive health insurance plans without any restrictions for 2026, which align with your long-term goals. Explore more about how our experts evaluate health plans through Ditto’s cut.

Frequently Asked Questions

What is an NCB Waiver Rider?

An NCB Waiver Rider is an optional paid add-on that you can avail of with your health insurance policy. It protects your accumulated No Claim Bonus even if you make a claim during the policy year, so your increased sum insured is not reduced at renewal. Niva Bupa’s Health Pulse Enhanced plan offers this rider (Safeguard).

How can I use my NCB amount?

You can use your No Claim Bonus just like your regular sum insured. It can be used for any valid claim, such as hospitalization, day care treatments, pre- and post-hospitalization expenses, and even AYUSH or domiciliary treatment if covered under your policy.

Does a free annual health check-up count as a claim?

Usually, no. A free annual health check-up is a built-in benefit and does not count as a claim. However, some insurers process it like a claim internally, so it’s best to confirm this in your policy wording.

If I renew my policy late, do I lose my No Claim Bonus (NCB)?

If you renew within the grace period, IRDAI guidelines say your policy benefits, including NCB, should continue. If the policy lapses beyond the grace period (15 days for monthly premiums and 30 days for quarterly, half-yearly, or annual payments), your accumulated NCB can be lost.

Which is better: NCB (increased SI) or a premium discount?

It depends on your priority. If your current cover feels insufficient or you’re worried about rising medical costs, a bonus that increases your sum insured is the better choice. If your coverage is already adequate and saving on premiums matters more, a premium discount may suit you better.

What is No Claim Bonus in Star Health Insurance?

In policies like Star Comprehensive, the NCB is a reward for staying claim-free during a policy year. If you don’t make any claims, Star increases your sum insured at renewal by a fixed percentage (as per your plan’s terms), without charging extra premium for that added cover.

Last updated on: 8 Feb, 2026