Health Insurance 7907 views December 12, 2019

Oriental Health Insurance No Claim Bonus (NCB)

Health Insurance is an extremely critical aspect of various general insurance available in India. The reason is quite simple and clear. Nowadays, the cost of hospitalization and its related expenses are increasing day by day and hence it is very important that one must protect himself and his family from any medical exigencies. Most importantly, health insurance plans are a must to keep the savings intact.

Health Insurance

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Health Insurance – What is it all about?

Health Insurance is to have a safeguard against all the medical emergency costs which might arise all of a sudden. Health Insurance helps us to go for a cashless hospitalization without any issue or reimbursement as applicable. Health Insurance is important for the below reasons:

  1. Protection of Savings: Medical crises are erratic, and with the increasing medical expenses, superior treatment can be quite expensive. This can cause a loss in savings. The common costs are taken care of by health insurance compnies which lessens the amount paid out of his own wallet by the insured.
  2. All-inclusive Coverage with Affordable Premium: A good health insurance company not only provides the coverage for hospitalization but also covers many other expenses which are needed after and before hospitalization. For example, daycare charges, diagnostic fees, domiciliary expenses, and many more.
  3. Family Coverage: The full family can be covered under any comprehensive health insurance plan.
  4. Superior Treatment: The cashless facility helps the insured to choose a hospital and get very essential quality treatment.
  5. Fast and complicated Lifestyle: With the rapid increase in changed and complicated lifestyle, chances of various ailments also increases like diabetic, pressure, heart problems, etc. And hence, it becomes imperative to guard and protect ourselves from any unwanted medical emergency.

Health insurance from a renowned company with good track records and customer reviews is very crucial.

Oriental Insurance Company Limited is a well-known company which caters to the needs of all segments of people from urban to a rural area. The products are well designed to meet the expenses incurred due to health hazards. A crucial feature of the health plan is No Claim Bonus. We will now study the concept of No Claim Bonus in detail.

No Claim Bonus / No Claim Discount ( Loading):

No claim bonus (NCB) in health insurance is the additional benefit that gets added to the sum insured for each claim-free year. It can be considered as a return or reward that an insurer provides to the insured policyholder for no claims. Oriental Health Insurance Company provides the No Claim Bonus by giving a discount in premium and hence the benefit is named as No Claim Discount/ Loading or NCD.

Let us see how the No Claim Discount works.

No Claim Discount (NCD):

Part A

The company will provide a discount of 5% on the premium for each claim-free year, however, this is subject to a maximum of 20 %. This will be permissible if the insured renews the policy with the company without any gap. The company will forfeit the full No Claim Discount in case there is any claim made by the insured in the subsequent of the renewal of the policy. The No Claim Discount will continue to accumulate again from the following claim-free year.

Any claim which is acknowledged under the health insurance policy and wherever the No Claim Discount has not accumulated or the No Claim Discount which has been earned is lost, the company will add a loading and the same will be levied on the renewal premium @5% for each claim year which is again subject to a maximum of 20%. The No Claim Discount (NCD) / Loading on the premium will be as per below table:

Standing of No Claim Discount /Loading in the expiring policy No Claim Situation- the status of No Claim Discount /Loading while renewing a policyClaim Made- the status of No Claim Discount/ Loading in while renewing the policy
0% NCD / Loading5% NCD5% Loading
5% NCD10%NCD0 % NCD / Loading
10%NCD15% NCD0 % NCD / Loading
15% NCD20% NCD0 % NCD / Loading
20% NCD20% NCD0 % NCD / Loading
5% Loading0% NCD / Loading10% Loading
10% Loading5% NCD15% Loading
15% Loading10%NCD20% Loading
20% Loading15% NCD20% Loading

Part B

No Claim Discount is also applicable to the plan which is specially designed for senior citizens and is named as “Health of Privileged Elders”

The insured will be eligible for No Claim Discount 5% rate of the premium at the time of renewal post each claim-free policy year, but the same is subject to a maximum of 20% without any break. The below table can be referred for the same:

No Claim Discount AvailabilityRate
Discount is available on renewal payable premium post one (or the first) claim free yearly policy5%
Discount is available on renewal payable premium on the second continuous claim free annual Policy10%
Discount is available on renewal payable premium on the third continuous claim free annual Policy
Discount is available on renewal payable premium on the fourth continuous claim free annual Policy

Regardless of the amount of claim, the no claim discount will be zero once the claim is paid or is zero under the policy.

Also, no advantage of any further insurance policy will be permissible at the time of renewal for the company to consider and giving the facility of No Claim Discount to the insured person.

The renewal together with the no claim discount is allowed by the company at its own discretion if the policy is renewed within 7 days from the date of expiry of the policy.


We can conclude from the above discussion that a No Claim Discount is a necessary feature that must be considered before buying any health insurance policy. However, it is advisable that one must read and understand the terms and conditions and various clauses clearly for him to apply for the appropriate health plan as per his need.

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