In a new strategy, Max Bupa, which has completed their first year of operation, has decided to provide health check-up vouchers as well as products and services from wellness centres for their policyholders who renew the policy contract.

All other non-life insurers either increase the policy sum insured or provide certain discount on the renewal premium in case the policyholder has not registered any claim in previous year. This constitutes what is known as no-claim bonus.

As per our experience, increasing the sum insured every claim free year is beneficial to the customers because it automatically takes care of inflation year over year and policyholder does not have to pay extra for the benefit. Also, providing health check-up coupons or similar benefits are not very attractive since the amount is almost negligible.

While ICICI Lombard General Insurance Company, Royal Sundaram Al liance Insurance Company, Cholamandalam MS General Insurance Company and Reliance General Insurance Company provide 5 per cent increase in sum insured, Apollo Munich Health Insurance Company increases the sum insured by 10 per cent to a maximum of 50 per cent over the years. Oriental Insurance Company and Bharti Axa General Insurance Company provide a discount of 5 per cent on renewal premium whereas Star Health and Allied Insurance Company provide a discount of 10 per cent.

"This method is truly discounting immediately to give the feeling to the policyholder that he has saved some money by not lodging any claim during the year," said Suresh Sethi, vice president of Insurance Foundation of India.