No Claim Bonus scheme and term and condition vary from Insurance to Insurance Company.
This concept works on the same lines as the no-claim bonus on your car insurance also. A Customer who have Policyholder, who has not made any claim in a year, can use the bonus to their benefit the following year as par scheme
CARE offers a 10 percent increase in the policy sum insured for every claim-free year. with no change in premium. So, a policy with a sum insured of Rs 5 lakh, Customer will get an extended cover of Rs 50,000 the following year at the same premium.
And also A claim-free third year will see him earning another ten per cent extra cover on his base sum insured, taking the total to Rs 600000. A maximum bonus of up to 50% is permissible.
In case of claim, the accumulated bonus is reduced by 10%.
By choosing an optional cover NCB Super you can further increase your sum insured amount by 50% for every claim free year up to a maximum of 100%.
Hence in total with both No Claim Bonus & NCB Super one can increase their sum insured up to 150% in 5 years.