Differentiating NCB in Health Insurance and Motor Insurance

Some people call insurance a gift that keeps on giving – and we agree with them! Though, there are a couple of naysayers. They might argue about hefty premiums and narrate incidents about rejected insurance claims. However, these arguments are only valid under specific circumstances. Like, too many add-ons (often irrelevant) or purchasing policies without studying the list of inclusions and exclusions.  

In terms of health and motor insurance, they offer a great deal of security to policyholders. These policies give people access to funds for medical treatments or vehicle repairs after an accident. Additionally, they can make cashless claims at network hospitals to avoid the hassle of claim reimbursement later. Certain policies also provide complimentary add-on covers that come with more benefits.   

While the major focus is making insurance claims, what about policy years without one? In fact, the naysayers might throw in the argument of needing these facilities unless a situation appears. And, guess what? Insurers have the perfect counter for it!  

No-Claim Bonuses in Health & Motor Insurance  

It goes without saying that health and motor crises don’t crop up often. So, why should one pay a premium for a situation that may or may not arise? For the no-claim bonuses! Health and motor insurers offer policyholders NCBs for two reasons – to encourage loyalty and timely renewals and to reward them for not making claims!  

Based on the health or motor insurance owned, these NCBs could either reduce the subsequent premium for the next year or increase the sum insured. Isn’t that a neat surprise? It’s a great incentive for policyholders to renew and accumulate these bonuses to reap their long-term benefits.  

In the long run, an increased sum insured in health insurance could provide the policyholder with a might amount for a nominal premium. Or, they could avail the promised sum insured for a fraction of the original premium owing to these handy NCBs.  

You can wave off the worries of losing these accumulated bonuses! As long as these policies are renewed on time, the NCBs will continue doing their job. Moreover, you can port the health insurance to another company along with these NCBs. For motor insurance, these NCBs are transferrable from one vehicle to another (e.g., car to car). 

 Addressing the Differences: NCB in Health & Motor Insurance  

While NCBs aren’t the sole motivator to purchase insurance, it attracts buyers, and for good reason too! However, since health and motor insurers provide NCBs, it may confuse policyholders. There are two types of NCBs involved in insurance, and it’s essential for people to know which one they may receive. After all, it could be why they’re purchasing the insurance in the first place!  

So, before rushing to purchase insurance for NCB benefits, understand which bonus falls under what category.  

• Health Insurance  

Under healthcare, these insurance policies mainly have two types of NCBs, discounted Premium or Increased Sum Insured. For the latter, health insurers can offer an increased sum insured up to 50%. Depending on the insurer, one of the two or both, will be provided during a no-claim policy year.  

• Motor Insurance  

Unlike the previous insurance, motor insurance only offers policyholders with one type of NCB – a discount on the premium during the next renewal. Customers will receive a discount of at least 20%, which can rise up to 50%.  

Since these NCBs are transferable through health insurance porting or during car or bike ownership transfers, it’s easy to accumulate. However, there are certain things a policyholder must avoid. A mistake like forgotten renewals or purchasing health insurance that doesn’t offer porting facilities could cost you this benefit. Moreover, making claims for minor expenses will cost you the NCB.  

While purchasing insurance, ensure that the company offers the option to port the policy to a different provider along with the accumulated NCBs. And, to the best of your finances, avoid making small claims! If it’s a cost that you can shoulder, it’s not worth losing out on an NCB that policy year.  

So, thread cautiously! NCBs are a big part of insurance and they make a difference in the future. While they aren’t the only reason to purchase insurance, it adds an extra incentive for those interested in availing the numerous benefits they provide. And, if you haven’t purchased an insurance yet, what are you waiting for? It’s an easy and hassle-free process. Apply for health insurance or motor insurance on Bajaj MARKETS today!