Request a demo for a perfect solution apt for your business. Take this journey with us to improved growth!

Success

Download Link Sent to Your Inbox

Decoding Cumulative Bonus

Zopper Team Basics of Insurance February 19th, 2024
What is Cumulative Bonus?

The word ‘bonus’ is always good news, even in insurance parlance. While most people know about the bonus they get in the form of NCB in car insurance, did you know you can get a similar bonus in health insurance as well?

Just like no claim bonus in car insurance is received by the policyholder for not making a claim in a policy year, your insurance provider may award you a claim-free policy year. Let us get into the details.

A no-claim bonus, generally referred to as a cumulative bonus in health insurance, is a benefit that a lot of insurers provide. It is awarded to those policyholders who go claim-free for a year. The benefit can be given in the following ways:

  • Discount on the premium:
    The bonus gets you a discount on the upcoming premium. For example, you purchase a health plan in the year 2023, and the whole year goes by without you making a claim. In such a scenario, you may get a discount on the premium that you have to pay at the time of policy renewal for the year 2024.

  • Increase in the sum insured:
    Some health insurance companies give the cumulative bonus by offering an increase in the sum insured, which can go up to 100% of the sum insured or as mentioned in the policy document.

    For example, you have a health plan of INR 10 lakhs. You do not make a claim in the first year, so at the time of renewal, your sum insured will be increased by say 50%, and hence, will now be INR 15 lakhs. If you do not make a claim in the next policy year also, your sum insured for the third year would be INR 20 lakhs. 

  • Value-added services:
    Some companies pay out the cumulative bonus in kind. Here you receive benefits like access to a wellness program, wellness coach, free preventive check-ups for insured members etc.

Before enrolling yourself with an insurance company, make sure you find out all the details and then make a well-informed decision. 

share this article

Recommended articles

Basics of Insurance | June 5th, 2023
Insurance is an essential component of financial planning and risk management. It provides a safety net against unexpected events and uncertainty that can have significant financial consequences.General insurance, also known as non-life insurance, is one of the most common forms of insurance that covers a range of risks such as property damage, liability, motor, and travel insurance.General ins...
Basics of Insurance | June 29th, 2023
Business insurance helps to protect companies from financial harm and workplace hazards that could happen in the business. Every potential danger that your company can encounter is covered by insurance. The costs and coverage options offered by insurance companies vary. You should talk to your insurance broker or agent about the types of insurance products that are available, as per your speci...
Basics of Insurance | June 29th, 2023
In today's world, education has become more important than ever, and pursuing higher studies often requires financial assistance. Fortunately, several Edtech companies have emerged in recent years, offering education loans to students. These companies understand the financial challenges faced by students and provide them with convenient loan options to support their educational aspirations...
Basics of Insurance | June 29th, 2023
Education is essential in today's fast-paced world for determining one's destiny. However, students and their families frequently face a heavy financial burden as a result of the rising expense of education. This is where edtech platforms that provide education loans enter the scene, giving students pursuing higher education financial support. This article will examine three significa...

Newsletter

Be the first one to know about latest happenings in the InsurTech sector. Click below to subscribe to our newsletter!