No-claim bonus

A no-claim bonus rewards a claim-free year by raising your sum insured at no extra cost, usually up to a cap. It is a quiet benefit of staying healthy and not making small claims, because your cover grows for the year you might really need it.

How it builds

For each policy year you do not make a claim, the insurer adds a slice to your cover, often somewhere between 10% and 50% of the base sum insured, accumulating year after year up to a ceiling (commonly double the base). Some policies give the bonus as extra cover; a few give a premium discount instead. Either way, you pay the same premium while your protection quietly compounds, which matters because medical costs keep rising.

The small-claim trade-off

Here is the catch worth knowing: making a claim can reduce or reset the bonus you have built. So for a small, easily affordable bill, it can be worth paying out of pocket to protect the growing cover, rather than claiming and losing the accumulated bonus. The bonus is most valuable precisely when you need the cover large, so guarding it on minor costs can pay off.

Keep it running

The no-claim bonus is tied to continuous cover, so renewing on time preserves it, and portability lets you carry it when you switch insurers. See how much health cover you need.