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Photo: iStock

Know all about benefits of not making a health insurance claim

Usually, insurance firms offer a discount in the range of 5-20% as a no-claim bonus. Apart from offering discounts for making no claims, they also offer cumulative bonus

There are various benefits that a policyholder can get in case no claim is reported in a policy year. These range from discounts in premium to cumulative bonus.

Future Generali India Insurance Co. Ltd recently launched a health insurance plan, which offers an 80% discount on premiums if the initial years of the plan tenure are claim-free, while insurers increase the sum insured if a policyholder does not raise a claim. Here’s a look at these no-claim bonuses in detail.

Future Generali’s Health Super Saver plan provides a discount of 80% on the applicable premium in consecutive years in case there is no claim in the first or the second year of the policy. The discount will apply only on the first two years of the policy tenure.

Further, an additional family discount of 10% is available if two or more family members are covered on an individual sum insured basis.

Usually, insurance firms offer a discount in the range of 5-20% as a no-claim bonus. Apart from offering discounts for making no claims, they also offer cumulative bonus.

“With healthcare costs going up year after year, if a policyholder accumulates no-claim bonus in the form of higher sum insured, then that will help him or her in provisioning for future," said Abhishek Bondia, managing director and principal officer, SecureNow.in, an insurance broker.

For example, if a policyholder has a health insurance of 5 lakh, and the policy offers a cumulative bonus of 50%, then if he or she doesn’t raise a claim, the base sum insured will increase to 7.5 lakh in the subsequent year.

For two consecutive claim-free years, the sum insured will become 10 lakh in the third year.

“No-claim bonus typically includes a fixed value or service being accrued every year where the claim has not happened. This benefit gets aggregated over a period of time. In case there is a claim in any policy period, the value of this cumulative bonus gets reduced by a certain fixed percentage. Generally, this cumulative bonus does not exceed the basic sum insured," said Priya Deshmukh Gilbile, chief operating officer, ManipalCigna Health Insurance Co. Ltd.

According to experts, both the options are equally good and depend on the customer’s requirement, and in case there is a healthy customer who is cost conscious, the discount of annual premium will be more lucrative.

“In case of customers where there is a higher predisposition of ailment and subsequently a claim, the option for a higher cumulative bonus as sum insured is a better one," said Gilbile.

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