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Cumulative Bonus in Health Insurance
Nov 4, 2023

Cumulative Bonus in Your Health Insurance Plan: The One Renewal Benefit to Not Miss

Even in 2023, are you wondering if investing in medical insurance is worth it? The answer is undoubtedly, a loud ‘Yes’. The rise in the cost of healthcare services has made it clear that health plans are a need of time. When you buy health insurance online, it's crucial to explore all avenues to maximize your coverage benefits. One such avenue is the cumulative bonus, a feature offered by many health insurance providers. In this article, we will delve into the concept of cumulative bonus, its benefits, and how it can help you secure better coverage over time.

What Is a Cumulative Bonus?

A Cumulative bonus in health insurance is a reward system provided by health insurance companies to policyholders who do not make any claims during a policy year. Under this feature, the insured individual earns a bonus in the form of an increased sum assured or a reduction in the premium payable for the subsequent policy year (depending on the insurer). * It is important to note that cumulative bonus and no-claim bonus are two different concepts. Cumulative bonus (CB) is offered in health insurance policies. In most cases, the bonus is reflected in the sum insured. Only a handful of insurers reward policyholders with a reduction in the premium amount. On the other hand, a no-claim bonus (NCB) is offered in motor insurance. The bonus is rewarded in the form of a reduced premium. The cumulative bonus can extend up to 150% of the sum assured. On the other hand, NCB has specified limits which start from 20% and end at 50%.

How Does Cumulative Bonus Work?

The cumulative bonus is usually offered as a percentage increase in the sum assured for each claim-free policy year. The percentage increase varies among insurance providers and can range from 5% to 10% per year. For example, if you have a health insurance policy with a sum assured of Rs. 5 lakhs and a cumulative bonus of 10%, and you do not make any claims in a policy year, the sum assured for the next policy year would be increased by Rs. 50,000 (10% of Rs. 5 lakhs).

What are the Benefits of Cumulative Bonus?

  1. Increased Coverage

The primary benefit of a cumulative bonus is the gradual increase in the sum assured over time. With each claim-free year, the coverage amount grows, providing you with higher financial protection against medical expenses. This increased coverage can be beneficial in the face of rising healthcare costs. Claims are subject to terms and conditions set forth under health insurance policy .*
  1. Cost Savings

In some cases, the cumulative bonus is offered in the form of a reduction in the premium payable for the subsequent policy year. This means that not only do you receive higher coverage, but you also enjoy cost savings on your health insurance premiums. It is a rewarding way to incentivise policyholders to maintain a healthy lifestyle.##
  1. Long-term Value

The cumulative bonus feature promotes a long-term association between the insured individual and the insurance provider. By rewarding policyholders who do not make claims, insurance companies encourage individuals to stay invested in the policy for loyalty and a long-term relationship. *
  1. Offers Incentive For A Healthy Lifestyle

The cumulative bonus acts as an incentive for policyholders to take better care of their health and adopt preventive measures. Policyholders can not only avoid claims, but also enjoy the benefits of a cumulative bonus. *

Points You Should Consider about Cumulative Bonus

- Check Policy Conditions

It is important to carefully review the terms and conditions of the health insurance policy regarding the cumulative bonus feature. Understand the specific criteria, waiting periods, and limitations associated with earning and utilising the bonus. Different insurance providers may have varying rules and conditions, so ensure that you are aware of the specifics of your policy.

- Consider Policy Renewal

The cumulative bonus earned in one policy year is typically applicable only if you renew health insurance policy with the same insurance provider. If you switch to a different insurance company, you need to check the transferability of the cumulative bonus. Therefore, evaluate the benefits and features of your existing policy before considering a switch.*


To summarise, the cumulative bonus feature in health insurance is a valuable benefit that rewards policyholders for maintaining a healthy lifestyle and avoiding claims. By offering such incentives, it encourages people to purchase a health insurance policy to enjoy all-round financial coverage for medical emergencies. Use the health insurance premium calculator before you purchase your policy to enjoy the benefit of not just a cumulative bonus, but also of the additional features offered in the policy.   * Standard T&C apply ## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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