No Claim Bonus: A Reward for Healthy Living in Health Insurance
No Claim Bonus (NCB) in Health Insurance is a reward provided by insurers to policyholders for not making any claims during a policy year. When a policyholder doesn’t file a claim, the insurer offers a discount on the premium for the next renewal, or increases the sum insured without an additional cost. This bonus serves as an incentive for maintaining good health and discouraging unnecessary claims. Typically, the NCB can accumulate over the years, enhancing the benefits for the policyholder, making it an attractive feature for those looking to manage their health insurance costs effectively.