No Claim bonus is an additional amount of sum insured added by the insurer, at the time of renewal, to reward you for having no claims in your previous policy year. The no claim bonus for the Group Health Insurance policy will be 20% of base sum insured in the first renewal year, 20% in the second renewal year and 10% in the third renewal year. There will be no subsequent increase in the base sum insured after this.
To help you understand the no claim bonus better, here is an illustration:
Inception Year |
Expiry Year |
Sum Insured |
Claim Incurred |
Actual Sum Insured Increase % |
Expiring Sum Insured Increase % |
Current Sum Insured Increase % |
Sum Insured Increase Amt |
Current Sum Insured |
2017 |
2018 |
300,000 |
N |
0% |
0% |
0% |
0 |
300,000 |
2018 |
2019 |
300,000 |
N |
20% |
0% |
20% |
60,000 |
360,000 |
2019 |
2020 |
300,000 |
N |
20% |
20% |
40% |
120,000 |
420,000 |
2020 |
2021 |
300,000 |
N |
10% |
40% |
50% |
150,000 |
450,000 |
2021 |
2022 |
300,000 |
N |
0% |
50% |
50% |
150,000 |
450,000 |
2022 |
2023 |
300,000 |
N |
0% |
50% |
50% |
150,000 |
450,000 |
2023 |
2024 |
300,000 |
N |
0% |
50% |
50% |
150,000 |
450,000 |
2024 |
2025 |
300,000 |
N |
0% |
50% |
50% |
150,000 |
450,000 |
2025 |
2026 |
300,000 |
N |
0% |
50% |
50% |
150,000 |
450,000 |