No-claim bonus and restoration: how your cover quietly grows

Two of the most valuable features in a modern health policy don't cost extra and don't appear in the headline sum insured. They're also the two most likely to be skimmed past when comparing plans.

No-claim bonus: a reward for a quiet year

Go a policy year without claiming and most insurers increase your sum insured at no extra premium. Do that several years running and your cover can grow substantially above what you originally bought. How generous this is, and what the ceiling is, varies a lot between insurers, which makes it a genuine point of comparison rather than a footnote.

The catch worth knowing

Make a claim and the accumulated bonus is usually reduced, sometimes sharply. That's not a reason to avoid claiming when you need to, the policy exists to be used, but it is a reason to check how steeply a claim cuts your accrued bonus.

Restoration: the safety net for a bad year

Restoration refills your sum insured if a large claim exhausts it during the policy year. For a family floater this is close to essential. Without it, one serious hospitalisation in March can leave everyone else in the family effectively uninsured until the policy renews.

Read the restoration terms carefully

• Does it restore for any illness, or only for one unrelated to the original claim?
• Can it be used by any family member, or only someone who hasn't claimed?
• Does it trigger once the cover is fully exhausted, or partially used?

These clauses are exactly the kind of detail we read for you before recommending a plan, because they decide whether your cover holds up in the year you actually need it.

This guide is general information to help you understand your options, not financial or tax advice. Please consider your own circumstances and consult a qualified professional where needed.