What Is A No Claims Discount?

I want to buy Private Health Insurance, so I’ve been doing some research. I’ve seen something called a ‘No Claims Discount’ mentioned by several health insurers. Can you explain what this means?

Question asked by Susan James

No Claims Discount Explained: Watch Our Expert Video

During your research into Private Health Insurance, you likely would have heard about a ‘No Claims Discount’. This is also referred to as a ‘No Claims Bonus’ (NCB). But what is it? We asked our very own, Alex Weir, to give you the lowdown. Just press play! 👇

Your No Claims Discount

In simple terms, it does what it says on the tin… You’ll get a discount on the cost of your Private Medical Insurance if you haven’t had to make a claim.

How Does A No Claims Discount Work?

Let’s say your policy has been active for nearly a year and it’s time for renewal. If you haven’t used your policy—e.g. made a claim on it—the insurer will provide you with a discount for the upcoming year of premiums.

Essentially, insurers ‘reward’ policyholders for not claiming on the policy. The cost of premiums will decrease, but your level of cover remains the same.

How Much Discount Can I Get?

How much discount you will be entitled to depends on the insurer you have bought insurance from. Generally, each insurer will use a sliding scale to determine your No Claims Discount.

For example, leading UK insurer Bupa has 14 levels of discount. If you haven’t made any claims, you’ll move up the scale and receive different discount amounts.

Each year at your policy renewal date, if you haven’t had to use the policy, you’ll continue moving up the scale. You could get up to 70% off your premiums at the highest level.

In the event of a claim, most insurers assess your discount on the value of your claim. If it’s under a certain amount (specified by the insurer), they will move you down a level.

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