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With the increased cost of medical services, it has become crucial to opt for a reasonable health insurance coverage to cover the medical expenses. With health insurance plans, you get to cover all your medical expenses but also get a reward for spending a claim-free year in terms of NCB or No Claim Bonus. Therefore, while applying for a health insurance in UAE, it is required to have sufficient knowledge regarding the various factors that governs these coverage. Without further delay, let’s take a look into the No Claim Bonus and the benefits they offer.

How does No Claim Bonus relate to health insurance?

In a health insurance plan, a no claim bonus or NCB implies the bonus cover added for each claim-free year in the amount of the assured amount offered by the insurance provider to the insured. This relates to a reward given to policyholders when they maintain good health and do not file a claim within the policy year. This is an amazing advantage that policyholders can enjoy with health plans. Policyholders are eligible to earn accrued benefits under the NCB, whereby the amount guaranteed of each claim-free policy year rises by a certain proportion.

What is the importance of No Claim Bonus?

There are various unique facilities that the policyholder can avail to with the help of No Claim Bonus.

1. You get assurance for the increase in sum amount - With big medical expenses, an existing health plan can be very insufficient. With No Claim Bonus, you get the feature which helps to cover the rise in the amount of assured sum.

2. NCB is transferable - The no claim bonus is transferable. This means the benefits required to transfer can be modified and switched according to the needs and plans of the insurance provider.

3. Financial security - Increased coverage provides financial protection with a family's finances in periods of increasing health care expenses.

4. Maximum coverage amount - This means that even after making several claims, the maximum coverage total as the number guaranteed is not below the initial amount.

5. It serves as a healthy incentive - NCB is essential to help with a healthy living as well as enable for a claim free year.

How does No Claim Bonus work?

The ultimate goal of health insurance policies is to provide a family with financial comfort because hospital bills are either settled or repaid through a cashless benefit from a medical health plan claim. At times, policyholders may not need to submit a request for a claim. The reason for this may be that they were able to stay healthy, which saved them from paying the hospital fees. Thus, they are eligible to obtain NCB under the health policies in such a situation.

Features of No Claim Bonus

If you are considering a health plan and wondering whether to avail for a no claim bonus or not, take a look at the features below before proceeding forward.     

1. If in the 1st year there is no claim, so the insurance agent pays an additional 10 percent on the value of the guaranteed amount.

2. It is the incentive that would multiply after each claim-free year above the total of the sum guaranteed.

3. All the eligible participants of the insurance package are entitled to no claim bonus for the facility in the case of family floater policies.

How will the NCB be affected regarding health insurance if the plan is not renewed?

Each health plan comes with a definite term. For those plans that are available for a longer time span, there is an option to pay it all in a one-time premium. This can relieve the stress of timely renewal of insurance plans.

Although if the policy holders are unable to extend the policy until the expiry date, it will expire. In such a scenario, the facility that comes with the extension of the insurance plan would not be given to the policyholders. This ensures that the accrued amount of coverage under the NCB would not be applicable to policyholders if the insurance policy is not extended on schedule.

How does the claiming process work for a NCB in health insurance?

Medical inflation can be expected to rise at an annual rate of about 15 percent. The rates of healthcare facilities are rising, and in the future it will be impossible to cover the treatment expenses. In this bleak scenario, NCB has a cumulative facility in the shape of a higher volume of sum guaranteed in a health insurance plan.

When is NCB provided in a health insurance plan?

If they plan to renew the health plan, NCB is given to the policyholders through a medical insurance policy. Insurance plans are now promising a no claim benefit during the insurance plan's lifetime. In the terms listed below, the no-claim benefit in a health contract is usually applicable.

1. The NCB is not entirely overlooked in the event that the insured individual makes a claim at a poor valuation.

2. In addition, if the covered party chooses to relocate their insurance providers, the NCB that has accrued with the former health plan will be moved to the current health plan.

3. If the policyholders have a limited record of the claim, they will enjoy a refund for the cost of the health care premium, which must be charged for the unique additional feature of the contract.

Conclusion

One of the key attributes that you would remember when selecting a package is an NCB in the health insurance plan. Insurance policies, which provide substantial benefits while enforcing only minimal fines on low-cost claims, may serve the intent well and prove to be very beneficial to the requirements.