Transferring NCB When Porting Health Insurance

Posted on: Jun 5, 2025 | 3 mins | Written by: HDFC ERGO Team

Transferring NCB When Porting Health Insurance

When you buy a health insurance policy and do not make any claims during the policy year, your insurer rewards you with a No Claim Bonus (NCB). It can either increase your sum insured at no extra cost or offer a premium discount. But what happens to this bonus when you decide to port your health policy to a new insurer?

The short answer: you can carry it forward!

However, it is important to understand the process, the required documents, the timelines, and how they may impact other policy features.

What is Health Insurance Portability?

Health insurance portability allows you to switch your policy from one insurer to another without losing accrued benefits. These include:

• Waiting period credits

• Sum insured

• No Claim Bonus

Can You Transfer Your NCB When Porting?

Yes, you can transfer your NCB when porting your health insurance policy. The new insurer will carry forward your earned bonus, but only after validating your policy documents and claim history.

NCB can be transferred in the form of:

• Enhanced sum insured

• Premium discounts

This is applicable only if the porting is done without any break in coverage.

How to Transfer NCB When Porting Health Insurance

Here’s a simple step-by-step breakdown:

1. Inform Your Current Insurer

• Send a written request to your current insurer at least 45 days before the policy expiry.

• Specify your intention to port the policy and retain the NCB.

2. Choose the New Insurer

• Do your research and compare benefits, premiums and features.

• Consider policies that allow you to retain your existing sum insured and bonus.

3. Submit Required Documents

You will need to provide:

• Previous policy documents

• Renewal notice

• NCB certificate

• Claim history

• Identity and address proof

Impact of NCB Transfer on Premium

Transferring your NCB typically does not increase the premium. In fact, if your new insurer offers premium discounts for NCB, you may end up paying less. However, it is essential to read the policy wordings carefully.

In many cases, the NCB is added as an extra sum insured. For instance:

• Original sum insured: ₹5 lakhs

• NCB (for two claim-free years): ₹1 lakh

• Total sum insured with new insurer: ₹6 lakhs

Points to Remember During NCB Transfer

Here are key things to keep in mind:

• Porting is allowed only at the time of renewal.

• No break should occur between old and new policies.

• Ensure all documents are submitted correctly.

• Read the new policy’s NCB terms.

• Some insurers may have a cap on a bonus transfer.

NCB Transfer in Individual vs Family Floater Plans

Whether your policy is an individual or family floater, the NCB transfer rules are similar. However, in floater plans, NCB is usually based on the claim history of the entire family.

If any member makes a claim, the entire bonus could be affected. This is worth considering while porting.

When You Should Consider Porting with NCB

Here are some scenarios where porting makes sense:

• You’re unhappy with the claim settlement of your current insurer

• You found better features or lower premiums elsewhere

• You want to switch to a policy with broader network hospitals

• Your current plan lacks health insurance top up plans support

In all these cases, ensure you don’t lose out on your NCB by following the right process.

How Does NCB Work with Top-Up Health Plans?

A health insurance top up plan provides additional cover once your base sum insured is exhausted. It’s important to note that most top-up plans do not offer NCB.

However, if your base policy has NCB and you port it, the bonus will still be carried forward, while the top-up portion remains unchanged.

This makes it vital to check NCB applicability while choosing a top-up.

Pros and Cons of NCB Transfer

Pros:

• Retains your policy benefits

• Prevents loss of accrued bonus

• May reduce premiums

Cons:

• Paperwork and verification take time

• Not all features may match between the old and new policies

Mistakes to Avoid During NCB Transfer

• Missing the 45-day notice deadline

• Submitting incomplete documents

• Letting the policy lapse before porting

• Assuming all bonuses will transfer automatically

• Not verifying the new policy’s bonus structure

Conclusion

Porting your health insurance policy is your right, and so is carrying forward your NCB. But to make the most of it, be aware of the timelines, documentation, and potential changes in policy terms. Whether you’re moving for better coverage, wider hospital networks or policies with health insurance top up plans, don’t leave your bonus behind.

Carefully evaluate the new policy, ask the right questions, and ensure all documents are in order. This way, your journey to a new insurer remains smooth, and you keep the benefits you’ve rightfully earned.

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

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