| What is a No Claim Bonus in Health Insurance? A No Claim Bonus (NCB) in health insurance is a reward given by the insurer to the policyholder for not making any claims during a policy year. It usually comes in the form of a discount on the renewal premium or an increase in the sum insured without extra cost. This encourages policyholders to maintain good health and avoid unnecessary claims. The bonus accumulates over consecutive claim-free years, up to a certain limit set by the insurer. |
Health insurance is a safety net during medical emergencies, but it doesn’t just help when you fall ill. It can also reward you for staying healthy. One such reward is the No Claim Bonus (NCB). This benefit is offered by most health insurance providers in India as a way to encourage claim-free years.
So, what exactly is no claim bonus in health insurance? If you don’t make any claims during a policy year, your insurer offers you a bonus at renewal. This is done either by increasing your sum insured or reducing your premium.
Over time, this bonus can help you save on premiums or increase your sum insured without extra cost.
If you need help choosing the right policy, feel free to chat with us on WhatsApp or book a free call at a convenient time. No spam — just honest insurance advice.
No Claim Bonus in Health Insurance: Overview
What is a No-Claim Bonus in Health Insurance?
A No Claim Bonus in Health Insurance is a reward given by your insurance company when you don’t file any claims during a policy year. It’s a way to encourage and benefit policyholders who stay healthy and don’t use their coverage unnecessarily. Instead of letting that claim-free year go unnoticed, insurers offer a bonus at renewal, either by increasing your sum insured or by giving a discount on your premium.
This bonus builds up over time. So, the longer you go without making a claim, the more you benefit. It’s a win-win.
What Are the Types of No Claim Bonus?
The No Claim Bonus in Health Insurance generally comes in two main types: Cumulative Bonus and Discount on Premium. Both reward you for not making any claims during the policy year, but they work differently.
1) Cumulative Bonus
A Cumulative Bonus is a reward your insurer gives you for not making any claims during a policy year. It increases your sum insured—the maximum amount your insurer will pay—without charging any extra premium. This way, your coverage grows over time simply by staying healthy and claim-free.
Example:
Let’s say your original sum insured is ₹5 lakhs, and your insurer offers a 10% cumulative bonus.
After one claim-free year, your sum insured becomes ₹5.5 lakhs.
After two years, it rises to ₹6 lakhs, and so on.
This continues every claim-free year, typically up to a cap of 50% or 100% of the base sum insured.
Ditto’s advice: If you make a claim, insurers often roll back (claw back) a portion or all of the cumulative bonus added so far. So while your base sum insured remains intact, the bonus portion may reduce or reset, depending on your insurer’s rules.
2) Discount on Premium
A Discount on Premium means the insurer gives you a reduction on your renewal premium if you haven’t made any claims during the previous policy year. This lowers the amount you pay to renew your policy.
Example:
Suppose your annual premium is ₹10,000. If you have a no claim bonus discount of 10%, you pay only ₹9,000 at renewal. This discount is usually smaller and less common in health insurance compared to the cumulative bonus but is still a valuable saving.
However, this feature is less common in health insurance, especially among private insurers. When offered, the discount amount is usually modest and often capped, typically at 10% or 20%. It's more frequently seen in policies provided by Public Sector Undertaking (PSU) insurers such as New India Assurance, Oriental Insurance, and United India.
While the savings may not be substantial, it’s still a helpful benefit—especially for long-term policyholders who rarely make claims.
Best Health Insurance Plans Offering Cumulative Bonus in 2025
We’ve listed some of the best health insurance plans in India for 2025 that offer Cumulative Bonus or Renewal Bonus benefits. Most of these plans offer a Renewal Bonus (added every year regardless of claims), while a few, like ReAssure 2.0, offer a Cumulative Bonus, which is added only for claim-free years.
To arrive at this list, we followed a structured evaluation process. First, we reviewed policy wordings and product brochures from the insurers, all updated as of May 2025. Then, we analysed health insurance data published by the IRDAI from 2021 to 2024, looking at key metrics like Claim Settlement Ratio (CSR), Incurred Claims Ratio (ICR), complaint volumes, hospital network strength, and customer experience indicators. Finally, we scored each plan based on a combination of insurer performance, core product features (like no copayment, no disease-specific sub-limits, restoration benefits, etc), and any limitations that could impact real-world value.
| Policy | Key Features | Cumulative Bonus | Drawbacks |
| HDFC ERGO Optima Secure | Copayment - NA Room Rent Limit - Any Room Disease Wise Limits - NA Pre & Post hospitalisation charges- 60 & 180 days Day Care - Covered up to S.I Ayush - Covered upto S.I Secure Benefit - 2x cover from day 1 |
Cumulative Bonus - 50% increase for each year up to a maximum of 100% of base S.I, irrespective of claims. | Slightly higher premium compared to other plans |
| Care Supreme | Copayment - NA Room Rent Limit - Any Room Disease Wise Limits - NA Pre & Post hospitalisation charges- 60 & 180 days Day Care - Covered up to S.I Ayush - Covered up to S.I |
50% increase for each year up to a maximum of 100% of base S.I, irrespective of claims. Add-on bonus: 100% p.a upto 500% (irrespective of claims) |
Slightly higher volume of complaints |
| Aditya Birla Activ One Max | Copayment - NA Room Rent Limit - Any Room Disease Wise Limits - NA Pre & Post hospitalisation charges- 90 & 180 days Day Care - Covered up to S.I Ayush - Covered upto S.I Health Returns - Upto 100% discount on renewal premiums upon maintaining good health. |
100% increase in sum insured every year (regardless of claims), up to 500% of base sum insured; capped at ₹3 Cr. | A relatively newer player in the market |
| Niva Bupa Aspire Titanium + | Copayment - NA Room Rent Limit - Any Room Disease Wise Limits - NA Pre & Post hospitalisation charges- 60 & 180 days Day Care - Covered up to S.I Ayush - Covered upto S.I |
Booster +: Unused base cover rolls over each year; grows up to 10x of base sum insured, based on entry age. | Higher complaints volume. |
| ICICI Elevate | Copayment - NA Room Rent Limit - Single Private Room (Upgradable with an add-on) Disease Wise Limits - NA Pre & Post hospitalisation charges- 90 & 180 days Day Care - Covered up to S.I Ayush - Covered up to S.I |
Renewal bonus: 20% increase in sum insured every year (even after claims), up to 100% of base sum insured. Add-on : 100% p.a up to unlimited accumulation. |
Lower than average claim settlement numbers. |
How Does No Claim Bonus in Health Insurance Work?
Let us understand how no claim bonus works with the following example:
Year 1
- You start with a base sum insured of ₹10 lakhs.
- You don’t make any claims during the year.
- As a reward, your insurer gives you a bonus of ₹5 lakhs at renewal (likely 50% NCB).
- Now, your total sum insured for the next year is ₹15 lakhs.
Year 2
- You enter the year with ₹15 lakhs total coverage (₹10 lakhs base + ₹5 lakhs bonus).
- Again, you don’t make any claims.
- Another ₹5 lakhs bonus is added.
- Your total cover at the start of Year 3 becomes ₹20 lakhs (₹10 lakhs base + ₹10 lakhs bonus).
Year 3
- You begin with ₹20 lakhs total coverage.
- Claim 1: You make a claim of ₹5 lakhs.
- This reduces your available balance to ₹15 lakhs (bonus remains untouched so far).
- Claim 2: You make another claim of ₹25 lakhs.
- But you only have ₹15 lakhs left, so only ₹15 lakhs is payable.
- Your bonus and base are both used up.
- End of Year 3: Since you made claims, no bonus is carried forward or added at renewal.
Year 4
- You start fresh with only the base cover of ₹10 lakhs.
- There is no bonus, as the previous year's claims disqualified you from earning one.
Key Takeaways:
- No Claim Bonus in health insurance increases your coverage every year you don’t make a claim. Typically by 10–50%, up to a maximum limit of 100% (generally).
- The NCB reset/clawback in the same proportion happens after any claim in the policy year (standard practice).
- You always start with your base cover, and your bonus builds year after year as long as no claims are made.
- High bonus accumulation can give you significant extra coverage in future years without paying a higher premium.
What is an NCB Waiver Rider in Health Insurance?
While a No Claim Bonus rewards you for staying claim-free, what happens if you do need to make a claim? That’s where the NCB Waiver Rider comes in.
A No Claim Bonus (NCB) Waiver Rider is an optional paid add-on you can choose to include with your health insurance policy. It protects your accumulated No Claim Bonus even if you make a claim during the policy year.
How Does It Work?
Normally, when you make a claim on your health insurance, your no claim bonus in health insurance resets or reduces at renewal. This means you lose the extra coverage or discount you had earned for staying claim-free. But with the NCB Waiver Rider, this penalty is waived. In other words, you don’t lose your bonus despite making a claim.
Why Is It Useful?
Medical emergencies can happen unexpectedly, and even careful policyholders may need to file a claim. Without this rider, making a claim means you lose your bonus and start fresh with just the base sum insured the next year.
Use Case to Understand the Rider Better
Imagine you have a health insurance policy with a base sum insured of ₹10 lakhs. After two claim-free years, your no claim bonus in health insurance has increased your coverage by ₹5 lakhs, so your total cover is ₹15 lakhs.
If you make a claim of ₹3 lakhs:
- Without the NCB Waiver Rider, your bonus might reset, and next year your sum insured goes back to ₹10 lakhs.
- With the NCB Waiver Rider, your bonus stays intact, and your sum insured remains ₹15 lakhs even after the claim.
How Much Can Your Sum Insured Grow with a Cumulative Bonus?
While a policyholder can boost their sum insured through a cumulative bonus, this increase is limited to a certain percentage of the original coverage. In most cases, the sum insured can be raised by anywhere between 50% to 100% of the base amount. It depends on the insurer’s terms. Since these conditions differ among insurance providers, it’s important to review your policy documents to understand the exact limits.
For example, suppose you have a health insurance plan with a base sum insured of ₹5 lakhs, and your insurer offers a cumulative bonus of up to 50%. In this case, the maximum increase allowed would be ₹2.5 lakhs, which is 50% of the original sum insured. Therefore, your total coverage can grow to a maximum of ₹7.5 lakhs through the cumulative bonus.
In case you had a 100% cumulative bonus limit, your coverage can increase by up to ₹5 lakhs (which is 100% of the original amount) and your total coverage would be ₹10 lakhs.
Features of No Claim Bonus in Health Insurance Policies
1) Accumulates Year After Year
The No Claim Bonus in health insurance increases with every year you go without filing a claim. Insurers usually add a set percentage: often 10% or 20% to your base sum insured annually. This continues until it reaches a cap, typically 50%-100% of the original coverage. So, if your base sum insured is ₹10 lakhs, your total cover could grow to ₹15-20 lakhs over time, at no extra cost.
2) Does Not Affect Premiums
One of the best parts about the No Claim Bonus (NCB) in health insurance is that it increases your coverage without increasing your premium for the bonus amount. You continue to pay premiums based on your base sum insured, but as a reward for not making any claims, your sum insured grows over time.
While your overall premium may still rise due to age-related increases or medical inflation, these hikes apply only to the base sum insured. The bonus portion is completely free — you don’t pay anything extra for the additional coverage you receive. It’s a smart way insurers promote healthy living and responsible use of the policy, while giving you added protection when you need it most.
3) May Have a Maximum Limit
Most insurers cap the NCB bonus at a certain percentage of the base sum insured: commonly 50-100%. This means that once your bonus reaches this limit, it will no longer increase, even if you continue to have claim-free years.
4) Claim Reset Impact
Making a claim usually means your accumulated No-Claim Bonus resets to zero or reduces in the same proportion at renewal. However, many insurers now offer an NCB Protection Rider. This rider allows you to keep your bonus even after making a claim, protecting the coverage increase you have earned.
5) Non-Transferable Between Insurers
When you port or switch your health insurance policy to a new insurer, the No Claim Bonus (NCB)—as a feature—does not directly transfer. In other words, your accumulated bonus from the old insurer doesn't carry over as a "bonus" in the new policy.
However, most insurers allow you to increase your base sum insured with them up to a value equal to your previous base + earned NCB — and they usually treat this higher amount as fully covered from day one, without fresh waiting periods for the increased sum insured.
Example:
You have a health insurance policy with Insurer A, with a base sum insured of ₹5 lakhs and an accumulated NCB of ₹2 lakhs, giving you total coverage of ₹7 lakhs.
You decide to port the policy to Insurer B.
While the ₹2 lakhs NCB doesn’t formally transfer, Insurer B may offer you a base sum insured of ₹7 lakhs right away, assuming you meet their underwriting requirements.
Importantly, the new insurer may also waive off waiting periods on this enhanced sum insured, treating it as continuous coverage, since you’ve maintained the policy without claims.
6) Clawback Clause
The Clawback Clause means that if you make a claim during a policy year, the bonus you earned gets reduced at renewal.
For example, if you had a 20% No Claim Bonus on a base sum insured of ₹5 lakhs (i.e., ₹1 lakh bonus), and you make a claim, your bonus will reduce by ₹1 lakh at the time of renewal.
It’s important to remember:
The reduction is always calculated on the base sum insured, not on the total coverage.
Your base sum insured stays the same;only the bonus portion is reduced or reset.
This is how insurers maintain balance: they reward you for not claiming but reduce the bonus when a claim is made.
Benefits of No Claim Bonus in Health Insurance
Let us explore the key benefits of NCB and why it makes your health insurance more rewarding.
1) Increases Your Coverage Without Extra Cost
One of the biggest benefits of No Claim Bonus in Health Insurance is that it boosts your sum insured each claim-free year without increasing your premium. This means you get more protection against medical expenses without paying more, simply by staying healthy and not claiming.
2) Encourages Healthy Behavior
NCB rewards you for not making claims which encourages you to take better care of your health. When you avoid unnecessary hospital visits or treatments, you not only stay healthier but also enjoy higher coverage over time.
3) Provides Financial Cushion for Future Expenses
As your sum insured grows with the NCB, you have a larger financial safety net for future medical emergencies. This can be especially helpful as healthcare costs rise or if you face more serious illnesses later on.
4) Applies to Both Individual and Family Floater Plans
Whether you have an individual health insurance plan or a family floater plan covering your entire family, the No-Claim Bonus applies the same way. If no claims are made during the policy year, the insurer rewards you with a bonus increase on the sum insured, regardless of the plan type.
5) Can Be Protected with NCB Waiver Riders
Many insurers offer an option called an NCB waiver rider, which helps protect your bonus even if you make a claim. This allows you to maintain your increased coverage without losing the benefits of previous claim-free years.
6) Encourages Long-Term Policy Holding
Since the No Claim Bonus in Health Insurance grows over time, it motivates policyholders to continue renewing their health insurance year after year. Staying with the same insurer means you can enjoy higher coverage benefits as your bonus accumulates.
No Claim Bonus (NCB) vs. Loyalty Bonus in Health Insurance
These are rewards insurers offer for staying healthy or renewing consistently. Modern comprehensive plans often offer bonus sum insured increases on renewal, regardless of claims, known as loyalty or renewal bonuses. Here’s a side-by-side comparison to help you understand both:
| Feature | No Claim Bonus (NCB) | Loyalty Bonus |
| Definition | Bonus for not making any claim in a policy year | A benefit provided for continuing the same policy with the same insurer over time (regardless of claims) |
| When You Get It | After every claim-free year | Automatically added every year of renewal, even with claims |
| How It Works | Sum insured increases by a % each year (or premium decreases) | Sum insured increases by a fixed % each year |
| Typical Bonus | 10%–50% increase in SI per year (max 100%) | 50%–100% increase in SI per year (Max 100 to 1000%) |
| Claim Impact | Bonus may reduce or reset if a claim is made | Not affected by claim history |
| Total Benefit Cap | Usually capped at 100% of base sum insured | Often capped at 100%–1000% of base SI |
| Premium Impact | Premium usually remains same; SI increases | Premium may increase slightly based on age, since these are only offered in comprehensive plans. |
| Best Suited For | Young, healthy individuals with low claim probability | Older individuals or those with pre-existing conditions requiring frequent claims |
Ditto’s Take: Should You Choose a Policy with a No Claim Bonus?
Absolutely. Opting for a health insurance policy with a No Claim Bonus (NCB) feature is a smart move. Why? Because it lets you increase your sum insured every claim-free year without paying extra premium. That means more coverage at the same cost. It also helps you afford better healthcare when you need it.
No claim bonus in health insurance is especially valuable in family floater plans. If multiple members fall sick in the same year or if one person needs repeated hospitalisation, the extra coverage from the NCB can really come in handy. It cushions your finances and ensures you are not left underinsured during emergencies.
Use our policy comparison tool to find the best health insurance plans with a strong No Claim Bonus feature.
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Final Thoughts on Health Insurance Plans with No-Claim Bonus
A No Claim Bonus in Health Insurance is a valuable feature that enhances your coverage without increasing your premium. Over consecutive claim-free years, your sum insured can grow by 50% to even 100%, depending on the insurer and policy terms.
However, the bonus is usually capped and may reduce if you make a claim, depending on whether your policy includes a clawback clause. It’s important to read the policy terms carefully and choose a plan that aligns with your health needs and financial goals.
When choosing a policy, always compare the NCB percentage, maximum limit, and claim experience of the insurer. If you still need help, feel free to contact an IRDAI-certified Insurance Advisor for expert advice!
Frequently Asked Questions (FAQs) on No Claim Bonus in Health Insurance
Where can I use my NCB amount?
You can use the No Claim Bonus (NCB) just like your regular sum insured — for any valid claim, including hospitalization, day care procedures, pre- and post-hospitalization, and even AYUSH or domiciliary treatment if covered. It’s not a separate fund or restricted amount; it simply adds to your total coverage. So if your base cover is ₹5 lakhs and you’ve earned a ₹2 lakh NCB, you can claim up to ₹7 lakhs in a policy year, depending on your medical needs.
What is a No Claim Bonus in Health Insurance?
A No Claim Bonus (NCB) in health insurance is a reward provided by your insurer for not making any claims during a policy year. It usually comes in the form of an increased sum insured or a discount on the renewal premium, without any extra cost.
What happens to No Claim Bonus after a claim?
If you make a claim, the No Claim Bonus may either reduce or reset to zero, depending on your policy's terms. Some insurers apply a clawback, which means your accumulated bonus decreases by a certain percentage. Others may offer an NCB retention rider, which helps preserve your bonus even after a claim.
What are the types of No Claim Bonus in health insurance?
There are two main types:
- Cumulative Bonus: Increases the sum insured each claim-free year, often by 10% to 100%.
- Premium Discount: Offers a reduction in renewal premium instead of increasing the coverage.
Are No Claim Bonus rules in India the same for all health insurance policies?
No, NCB rules can vary across insurance providers in India. While most offer cumulative bonuses capped at 50% to 100%, the rate of increase, clawback terms, and eligibility conditions may differ. Always check your policy wording for specifics.
Is No Claim Bonus available in both individual and floater health insurance plans?
Yes, No Claim Bonus is available for both individual and family floater health insurance plans.
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