India, July 28 -- No Claim Bonus is a concept that is usually introduced when individuals buy a health insurance cover. It is often presented as a reward for maintaining good health and remaining claim-free. Over time, a number of policyholders tend to think of it as savings or value-add, without necessarily understanding how it functions.

The No Claim Bonus is, in practice, a structural aspect of the insurance pricing rather than a reward in the traditional sense. Its impact depends on the terms of policies, continuity and utilisation of cover over several years.

Understanding this feature can help policyholders make informed decisions and avoid confusion later.

In most cases, a No Claim Bonus under mediclaim insurance is linked to cl...