Cumulative bonus in a health insurance plan

Can you tell me what does cumulative bonus means in a health insurance plan?

Hi,

The No Claim Bonus offered on a Health Insurance policy is usually in the form of a cumulative bonus. This is offered by insurers on indemnity based Health Insurance policies. This is offered to the policy holder under the following situations:

There is a progressive increase in the Sum Assured, by a value of at least 5%. This is the cumulative bonus accrued during one policy year in which no claim has been made by the insured. The cumulative bonus can be accumulated for a maximum period of 10 years.

The cumulative bonus that a policy holder is eligible to receive on his/her health insurance policy will be stated in the policy document.

The cumulative bonus can be applied to the sum assured for a 3-year period. This can help renew the policy by the due date as well.

The cumulative bonus will expire if the person does not renew the Health Insurance policy by the due date.

The rate at which the sum insured is increased each year varies from 10% - 50%.

Claims made during overlapping periods of two Health Insurance policies will get the benefit of the available sum insured and the cumulative bonus will not be reduced to zero.

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Cheers,
BB Expert