You need health insurance to protect you from expensive medical bills, should an ailment or mishap befall you. A claim on your policy means your insurer ends up paying your medical and hospitalization bills for you. Therefore, to encourage you to maintain a healthy lifestyle—so your visits to hospitals are minimal—insurers give you a no-claim bonus for every year you don’t make a claim on your policy. This bonus typically bumps up your sum insured every year. But do you know what happens if you do make a claim? Read on to find out.
No-claim bonus
Typically, health insurance policies are annual contracts. This means, you renew your policy every year. And for every no-claim year—the year in which you do not make a claim on your health insurance—the insurer rewards you with a no-claim bonus when you renew the policy.
