No-claim bonus

A no-claim bonus (NCB) is extra cover a health insurer adds at renewal for each year you make no claim, typically 10% to 50% of the sum insured and often capped at 100%. On a ₹5,00,000 policy, five claim-free years can lift cover to ₹10,00,000 with no rise in premium for the bonus itself. Most policies reduce the accumulated bonus if you claim, though some offer a non-reducing variant. It is the quiet reason a small claim can cost more than it pays: claiming ₹15,000 may surrender far more in future cover.