What Is A No-Claim Bonus In Health Insurance

Vivek Law: Here’s a question from Nidhi. She asks that when you take health insurance, does the money paid as premium comes back to her or her family if they haven’t fallen sick or used it?

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Dhruv Sarin: In health insurance, the money paid as premium doesn’t come back. Insurance companies give 'No Claim Benefits' if the policyholder hasn’t claimed in a year. No claim benefits could be of various kinds but broadly, an increase in sum insured is largely given. This increase in sum insured could be 10% or in some cases 50-60% too. So, you don’t get the sum insured back but additional features like an increase in sum insured or a health checkup. If people don’t claim and take out money, then the whole concept of insurance goes away.

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