Have 2 Health Insurance Policies? Stop! Why Using Your "Company Plan" First Saves Your "No Claim Bonus"

Many smart professionals in India hold two health insurance policies: one provided by their employer (Group Cover) and one purchased personally (Retail Cover).

But when a medical emergency strikes, confusion takes over. "Which card should I give at the reception? Can I use both? Will I lose my bonus?"

If you don't follow the right order, you might lose money or get stuck in paperwork. Here is the mathematically correct strategy to claim from two insurers in 2026.

Have 2 Health Insurance Policies?

1. The Myth of the "Contribution Clause"

In the past, if you had two policies of ₹5 Lakhs each, insurers would force you to split the bill proportionally. This was a headache.

Good News: The IRDAI has abolished the "Contribution Clause" for indemnity policies. As a policyholder, YOU have the absolute right to choose which policy to trigger first. The insurer cannot force you to go to the other one.

2. The Golden Rule: Corporate First, Personal Second

Unless your company policy has terrible restrictions (like a Room Rent Limit), you should ALWAYS exhaust your Employer’s Group Insurance first.

• Reason 1 (Zero Cost): Company policies usually don't have a "No Claim Bonus" (NCB). If you don't use it, you get no reward. It is "Use it or Lose it."
• Reason 2 (Protect Your Wealth): Your Personal Policy has a precious NCB. Every year you don't claim, your coverage increases by 10% to 50% (and even up to 100% in modern 2026 plans). Saving your personal policy protects this future growth.

3. Step-by-Step: How to Claim from Both

Scenario: Your hospital bill is ₹8 Lakhs. Your Company Cover is ₹5 Lakhs. Your Personal Cover is ₹10 Lakhs.

1. Step 1 (Cashless): Initiate the Cashless Claim with Insurer A (Company Policy). Get approval for the full ₹5 Lakhs limit.
2. Step 2 (The Balance): You pay the remaining ₹3 Lakhs to the hospital to get discharged. (Note: In 2026, thanks to the NHCX (National Health Claims Exchange), some hospitals may coordinate this digitally, but always be prepared to pay first).
3. Step 3 (Settlement Letter): Ask the hospital for the "Settlement Letter" from Insurer A and "Attested True Copies" of all bills/reports. (Do not give original bills to Insurer A if you need to claim from Insurer B).
4. Step 4 (Reimbursement): Submit the attested copies and settlement letter to Insurer B (Personal Policy) to claim the remaining ₹3 Lakhs as reimbursement.

4. When to Break This Rule (The "Consumables" Trap)

There are two exceptions where you should skip the Company Plan and use your Personal Plan first:

• The "Room Rent" Trap: If your Company Policy has a Room Rent Cap (e.g., 1% of Sum Insured) and you pick a luxury room, the insurer will deduct money Proportionately from the ENTIRE bill. This is dangerous. Use your Personal Policy if it has "No Room Rent Capping."
• The "Consumables" Cost: Items like gloves, masks, and kits (Non-Medical Expenses) are often excluded in older Company Plans. If your Personal Plan has a "Consumables Rider," using it first might save you ₹20,000 - ₹50,000 in out-of-pocket costs.

The Claims Strategy

Having two policies is a powerful financial shield. It acts like a "Super Top-up" for free.

Pro Tip: Always declare BOTH policies at the hospital desk during admission. The TPA desk can often coordinate between the two insurers to make the process smoother.