Cumulative Bonus in Health Insurance: Difference & Benefits

Usually, a Mediclaim Policy refers to an insurance plan that offers financial protection against medical emergencies. Some of the inclusions of this plan include accidents, sudden illness and surgeries, etc. However, in the context of Cumulative Bonuses, both policies offer similar incentives.


Difference between Cumulative Bonus and No Claim Bonus in health insurance

You may have heard the term “No Claim Bonus” or “NCB” used in the context of car/bike Insurance. It is used to denote a discount offered by insurers after the completion of a claim-free policy year by the insured. 


However, in the context of health insurance, No Claim Bonus and Cumulative Bonus are used interchangeably. That being said, Cumulative Bonus is the more commonly used term.

Although the terminology is similar, the implication for the term “No Claim Bonus” is slightly different in health insurance and motor insurance. In motor, it only refers to a discount on the policy premium offered by an insurer. 

However, in health insurance, it could mean either a discount on the policy premium or an increase in the sum insured. It depends on the terms and conditions of the health insurer.


Cumulative Bonus in Health Insurance


Additional benefits

  1. The following are a few additional benefits of a Cumulative Bonus in health insurance.
  2. Fortunately, Cumulative Bonus is not affected by regular health check-ups. So you can avail these without any worry of losing your bonus.
  3. Cumulative Bonus is applicable for both individual and floater health insurance plans. So, you can enjoy this benefit in both plans.
  4. With inflation occurring periodically in the country, an increase in the sum insured will definitely aid in keeping up with rising costs.


To sum up

Investing in health insurance gives returns whether or not you make a claim during a policy term. Health insurers reward customers who stay fit and do not raise any claims by offering them a Cumulative Bonus in the successive term. 

The Cumulative Bonus can either be a decrease in the policy premium or an increase in the sum insured. Either way, you will benefit. So, try to settle small medical expenses yourself and enjoy more financial protection in the future.


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