Ditto

Bonus in case you don’t make a claim

Insurers will tell you they want you to stay fit and healthy. In fact, they will even incentivize you in a bid to achieve this objective. For instance, how would you feel if somebody told you they’ll up your cover (above and beyond the sum insured) by 50% each year in the event you don’t claim insurance. That would be amazing, right?

Think about it. You could start with a cover of ₹5 lakhs. And then see it move up to ₹7.5 lakhs and then the next year, another 50% over and the above the sum insured would take your total cover to 10 lakhs. Obviously, they’ll stop at some point. Most insurance companies will tell you they’ll stop once the cover doubles in value. In fact, they’ll also tell you they’ll cut the sum insured by the same amount (50%) in the event you claim insurance after receiving the bonus. So technically, next year, you could be back with a cover of just 5 lakhs.

But still, it’s a pretty nifty bonus.

No Claim Bonus is pretty useful. All you have to do is make sure that the bonus is actually substantial. For instance, anything below 10% is not really meaningful. So it might just be a marketing tactic.

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