What is No Claim Bonus (NCB) in health insurance?
A No Claim Bonus (NCB), also called a cumulative bonus, is a reward for every claim-free year: the insurer either boosts your sum insured at no extra premium or gives a premium discount at renewal. The increase typically ranges from 10% to 25% per claim-free year and accumulates up to a product cap, commonly 50% to 100% of the base sum insured.
In plain English
Stay claim-free for a year and your cover grows for free, or your renewal gets cheaper. It is the insurer's way of rewarding healthy, low-claim years.
A quick example
You hold a Rs 10 lakh plan with a 20% NCB. After one claim-free year your cover rises to Rs 12 lakh at the same premium, and after two years to Rs 14 lakh. If you make a claim, the bonus usually reduces by one step rather than wiping out your base sum insured.
What IRDAI says
Per the IRDAI Master Circular on Health Insurance (29 May 2024), insurers may reward claim-free policyholders either by increasing the sum insured or by discounting the premium, and accrued cumulative bonus is protected when a policy is renewed within the grace period.
Where to find it in your policy
Not sure where this sits in your own policy? CoverSure reads the full document and pulls up the exact clause for you.
See where to find No Claim Bonus (NCB) Clause in your policy →Related terms
Trusted by 50,000+ Users Who Now Actually Understand Their Health Insurance
We don't sell policies - we simplify them.
No pressure to buy.No spam.Just unbiased advice.FAQs
Most plans reduce the accumulated bonus by one slab, often the same percentage you earned per year, rather than cancelling it entirely. Some premium plans offer a non-reducing bonus that stays intact even after a claim.
Yes. When the NCB takes the form of extra sum insured, it increases your cover without raising your premium. The alternative form is a discount on the renewal premium instead of added cover.
Yes. When you port at renewal, the cumulative bonus you have built up is carried over and added to the base sum insured you choose with the new insurer, so you do not lose the accrued benefit.
Reviewed by
Atul SharmaAVP, Founder’s Office at CoverSure · 7+ years in insurance (ex-Tata, Ditto, Cholamandalam)
