Ask Mint Money | Those below age 45 do not have to undergo tests for health plans

Ask Mint Money | Those below age 45 do not have to undergo tests for health plans

How does a no-claim bonus work in health insurance?


In many insurance policies, insurers reward customers who do not make a claim during the policy term. This is called a no-claim bonus. No-claim bonus is given in two forms—either a reduction in premium known as no-claim discount (NCD) or an increase in the sum insured known as no-claim bonus (NCB). In case of NCD, insurers give a 5% discount (up to 50%) for each no-claim year; insurers increase the sum insured by 5% (up to 50%) for every no-claim year in case of NCB.

Since the premium paid for a health policy is tax deductible, it is better to have an NCB as you will get higher benefit for the same premium. However, this should not be the only criteria for choosing a policy.

Is there any insurance that covers cancellation of vacation in case of an emergency?

—Pallavi Sen

The risk of cancellation of a trip abroad can be covered by a travel policy. Travel insurance covers risks such as medical expenses, loss of passport, provision of emergency financial aid following theft, robbery or mugging, loss of checked-in baggage and unforeseen expenses due to missed connections.

It also covers cancellation of the trip due to some defined reasons. The number of reasons may vary from insurer to insurer, the main reasons covered are unforeseen illness, injury or death of the insured or insured’s family member, inclement weather, terrorist incident at the destination, natural disaster or fire at the destination, the insured or a travelling companion being the victim of a felonious assault prior to departure.

My wife is a homemaker and we have two children aged 8 and 5. My father, aged 83, lives with us. Should I take an individual or a family floater? My wife suffers from hypothyroidism and had an epileptic bout once. How much cover should I take?


I am assuming that your age is less than 45 years. Persons below the age of 45 years do not have to undergo any medical test for health insurance. Since your wife will not have to undergo any health check-up at present, it is best that you take the maximum possible sum insured for your wife to start with. Insurers will be hesitant to give her a higher sum insured than what you take for yourself hence both of you should take the maximum possible sum insured that you can afford. This is recommended because if your wife makes any claim, insurers will limit the sum insured at that time for the disease. Then you will not be able to avail higher reimbursement ever for the treatment of that disease.

As your children are quite young, you can take a sum insured of about 1 lakh and then increase it gradually. Your father can’t be covered at his age.

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