Health insurance is a vital safeguard against unexpected medical expenses, and a Mediclaim policy can provide comprehensive coverage for you and your family. One of the most attractive features of this policy is the No Claim Bonus (NCB).
Understanding how to maximize your NCB can significantly enhance the value of your policy. In this article, we explore what a No Claim Bonus is, how it works, and strategies to maximize this benefit, ensuring you get the most out of your Mediclaim policy.
What is a No Claim Bonus?
A No Claim Bonus is a reward given by insurance companies to policyholders for not making any claims during a policy year. It is an incentive for maintaining good health and avoiding unnecessary claims on your Mediclaim Policy. The bonus can take the form of a discount on the renewal premium or an increase in the sum assured without any additional cost.
How Does a No Claim Bonus Work?
Premium Discounts
One way insurers reward policyholders is by offering a discount on the renewal premium for each claim-free year on your Mediclaim Policy. For instance, if your annual premium is ₹10,000 and the insurer offers a 10% NCB, you would pay ₹9,000 the following year.
Increase in Sum Assured
Another form of NCB is an increase in the sum assured. For example, if your Mediclaim policy has a sum assured of ₹5 lakhs and you receive a 10% NCB, your coverage amount would increase to ₹5.5 lakhs without an increase in the premium.
Maximizing Your No-Claim Bonus
To make the most of your NCB, it’s essential to adopt strategies that minimize the need to make claims while ensuring you remain covered for unforeseen medical expenses.
1. Opt for a Higher Deductible
Choosing a higher deductible on your Mediclaim Policy can reduce the likelihood of making small claims. A deductible is the amount you pay out of pocket before the insurance coverage kicks in. By opting for a higher deductible, you can keep your premium low and preserve your NCB for significant medical expenses.
2. Maintain a Healthy Lifestyle
Adopting a healthy lifestyle can reduce the risk of illnesses and medical emergencies. Regular exercise, a balanced diet, and routine health check-ups can help you stay healthy and minimize the need for medical treatments, thereby preserving your NCB on your Mediclaim Policy.
3. Use Network Hospitals
Insurance companies often have tie-ups with a network of hospitals where policyholders can avail of cashless treatment. Utilizing these network hospitals ensures that your out-of-pocket expenses are minimized, and you can avoid making small claims that might affect your NCB on your Mediclaim Policy.
4. Pay for Minor Medical Expenses Out of Pocket
Paying for minor medical expenses out of pocket can help you retain your NCB on your Mediclaim Policy. For instance, if you have a minor health issue that requires treatment costing ₹2,000, it might be more beneficial to pay it yourself rather than making a claim and losing your NCB.
5. Regular Policy Reviews
Regularly reviewing your Mediclaim policy with the help of an insurance aggregator like Digibima can ensure you are always on the best plan for your needs. They can help you compare policies, check for NCB benefits, and ensure you are getting the most out of your insurance.
Real-Life Example
Consider Anjali, a 30-year-old marketing professional. She has a Mediclaim policy with a sum assured of ₹5 lakhs and an annual premium of ₹12,000. By maintaining a healthy lifestyle and paying for minor medical expenses out of pocket, she did not make any claims for three consecutive years.
As a result, her sum assured increased by 10% each year, and now her policy covers ₹6.65 lakhs. Additionally, her premium has been reduced by 10%, making her annual premium ₹10,800. Anjali’s prudent approach allowed her to maximize her NCB, providing her with increased coverage at a lower cost.
Conclusion
Maximizing your No Claim Bonus with a Mediclaim policy is a smart way to enhance the value of your health insurance. By adopting a healthy lifestyle, choosing higher deductibles, and paying for minor expenses out of pocket, you can enjoy increased coverage and lower premiums. Utilize resources like Digibima to compare and select the best policies, ensuring comprehensive coverage and financial savings.
FAQ Section
Q1: What is a No Claim Bonus (NCB)?
A1: A No Claim Bonus is a reward given by insurance companies for not making any claims during a policy year. It can be in the form of a premium discount or an increase in the sum assured.
Q2: How does a higher deductible help in maximizing NCB?
A2: A higher deductible reduces the likelihood of making small claims, helping you preserve your NCB for significant medical expenses.
Q3: Can lifestyle choices impact my NCB?
A3: Yes, maintaining a healthy lifestyle reduces the risk of illnesses and medical emergencies, thereby minimizing the need for claims and preserving your NCB.
Q4: Should I pay for minor medical expenses out of pocket?
A4: Paying for minor medical expenses out of pocket can help you retain your NCB, as making small claims might result in the loss of your bonus.
Q5: How can Digibima help in maximizing my NCB?
A5: Digibima, an insurance aggregator in India, helps you compare policies, check for NCB benefits, and ensure you are getting the most out of your Mediclaim policy.
