You have a mediclaim insurance policy. And, no claim was made in a year.
Well, this is indeed a delightful thing to hear. It depicts that you were in the best of health condition.
Did you know that there are benefits that a policyholder can avail of in case no claim is made in a policy year?
Doesn’t sound right?
You might be thinking that you already paid mediclaim insurance
premium and ideally didn’t receive any returns. Well, do not let such a thought push you towards not buying or renewing the insurance policy. You have an advantage.
Don’t we all love bonuses? We do, right! If you get a bonus of the sum insured without making any extra payment you will feel elated. Well, this reward is offered when no claim is made.
Before we get into the nitty-gritty of understanding claim-free years in mediclaim let us get the basics clear.
How Does the Insurance Policy Work?
When you buy the insurance policy, a premium amount is paid to the insurance company against the coverage offered. In case of adversity, if the need arises in a financial year a claim is raised with the insurance company. The insurer then analyzes and compensates for the incurred financial loss. This is how the insurance policy usually works.
Brief Overview- No Claim Bonus
No claim bonus is a way wherein the insurance company rewards their policyholders when they have a claim-free year. Most often people hear about a no claim bonus when purchasing motor insurance. Yet many do not know that the same is applicable in mediclaim insurance as well.
When purchasing a health insurance policy, one of the most important factors that should be looked upon is a no claim bonus. It becomes prudent to understand that health insurance is the risk cover.
Yes, you read it right!
It is indeed a way to cover the health risks. Even when you have a claim-free year, it might not give you returns in terms of finances, however, it does assure you of a secured financial future for yourself and your loved ones.
Having the mediclaim insurance policy safeguards your hard-earned money from any medical emergency that otherwise might create a hole in the pocket.
A mediclaim insurance policy ensures a worry-free future.
*Standard T&C Apply
How Does a Claim Free Year Help Boost Mediclaim Sum Insured?
With no claim bonus feature, the policyholder is entitled to an increased sum insured each year. Provided the policyholder should not make any claim. The sum insured is increased by a specific percentage by the insurer. *
How Does a No Claim Bonus Work?
In health insurance, the no claim bonus work in cumulative bonuses and concessions in premium. *
What is Cumulative Bonus & How Does it Work?
When you have a claim-free year, the coverage amount is increased yet the premium sum remains the same then it is a cumulative no claim bonus. It is better to understand the cumulative bonus in health insurance
. There are insurance companies that add this benefit to the sum insured amount and some offer rebates while the customers renew the health insurance plan. The cumulative bonus might differ, however, the granted benefits on each claim-free year remain the same. The cumulative bonus is provided under certain conditions. *
Concession on Premium
No claim bonus is accessible as a premium concession during insurance renewal
. In any such case, the sum insured remains unchanged and the premium is less. It is to be noted that the maximum concession will have a cap for the policyholder. *
* Standard T&C Apply
Do Mediclaim Policies Provide Tax Savings?
Yes, mediclaim policies provide tax savings too. Individuals who opt for a mediclaim policy are entitled to tax deduction under Section 80D of the Income Tax Act. These deductions depend on the individuals covered under the plan and their respective ages. For anyone below 60 years of age, the deduction amount remains Rs 25,000. In the case of senior citizens, the amount remains Rs 50,000.
*Standard T&C Apply
The tax benefit is subject to change as per the existing laws.
The Bottom Line
In these testing times, it becomes prudent to avail of the right medical facility. Talking about a no claim bonus is indeed a lucrative way that enhances the policy coverage and ensures safety against any medical exigency.
Read the policy documents carefully and understand the NCB terms before taking the final call. Stay fit and healthy!
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.