Debunking the Myth: Losing Your Health Insurance Premium Without Claims

Posted on: Jun 4, 2025 | 3 mins | Written by: HDFC ERGO Team

Debunking the Myth: Losing Your Health Insurance Premium Without Claims

One persistent myth surrounding health insurance is the belief that your premium is lost forever if you don’t make a claim during the policy period. This assumption often deters people from renewing their plans or even buying one in the first place. However, this belief is far from the truth. In reality, claim-free years can work in your favour.

Understanding How Health Insurance Premiums Work

When you buy health insurance online, you are paying a premium for coverage over a defined period, typically one year. The premium is not a refundable deposit; it is the cost of the financial protection and risk coverage.

Here’s what your premium pays for:

• Risk coverage against medical emergencies

• Cashless hospitalisation network services

• Claim processing and customer support

• Optional add-ons or riders

Even if you don’t file a claim, you are still benefiting from peace of mind and financial safety.

What Happens When You Don’t File a Claim?

If you don’t make a claim in a given policy year, you do not lose your premium. Instead, many insurers reward you with certain benefits:

1. No Claim Bonus (NCB)

• This is a reward given to policyholders for not filing any claims during the policy year.

• It usually increases your sum insured by a fixed percentage at no extra cost.

2. Loyalty Benefits

• Some insurers offer wellness programmes, discount coupons, or health check-ups as loyalty bonuses for not filing a claim.

3. Lower Premium Adjustments

• Though not common, a few insurers offer reduced premiums or attractive renewals as a reward for claim-free years.

So, while you may not receive a refund, you’re still gaining long-term advantages by maintaining a healthy lifestyle and avoiding claims.

Why This Myth Persists

This myth is partly rooted in misunderstanding and partly due to a lack of proper guidance at the time of purchase. Let’s break down some of the reasons why this belief continues:

• Lack of awareness:

Many buyers don’t read the policy document thoroughly.

• No perceived benefit:

Since there’s no immediate refund, people assume the money is wasted.

• Miscommunication:

Poor explanations of the insurance products can reinforce this myth.

Educating yourself is the best way to bust these myths and make an informed decision when you buy health insurance online.

Advantages of Staying Claim-Free

While it may seem that not filing a claim is a waste, in reality, it often indicates good health and fewer medical issues.

1. Healthier Life

Not visiting hospitals quite often means you’re in good health. That’s the real win.

2. Accumulated Benefits

With an increasing sum insured through NCB, you are building a stronger financial safety net for future health emergencies.

3. Affordable Renewals

Your consistent policy renewal history can sometimes help during negotiations with insurers for better premium rates or added benefits.

4. Access to Additional Features

Many plans offer additional features like preventive health check-ups and wellness apps to long-term, claim-free policyholders.

Smart Ways to Get More Value From Your Health Insurance

Even if you don’t claim during your policy year, you can still make the most of your health plan. Here’s how:

1. Utilise Free Health Check-ups

Most policies offer complimentary annual health check-ups. Don’t skip them.

2. Join Wellness Programmes

Many insurers provide fitness apps, diet consultations, and wellness tracking tools.

3. Track Your NCB

Keep an eye on your No Claim Bonus each year. Ensure it is being added correctly to your sum insured.

4. Compare and Buy Health Insurance Online Wisely

Use trustworthy sources to compare different plans, focusing on features like NCB, add-ons, cashless hospitals, and wellness benefits.

Conclusion

The idea that your premium is lost if you don’t make a claim is outdated and misleading. Instead, think of your health insurance as a safety net. If you never fall, that’s great news, but the net is there just in case. Plus, the longer you go without using it, the more you can benefit through bonuses and perks.

To get the most out of your policy, always compare, read the fine print, and buy health insurance online from reputable sources.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

5 common Myths about Health Insurance deciphered

Myths and Facts of Health insurance

Common Misconceptions About Emergency Assistance Coverage

Debunking Myths & Facts About Eye Care

Myths And Facts About Prostate Cancer