What Is Cumulative Bonus In Health Insurance?

Cumulative bonus in health insurance is helpful. Find out how it works and how you can make the most of your cumulative bonus with this quick read

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Did you know you can increase the sum insured of your health insurance policy without paying a higher premium! It seems too good to be true, but it is actually possible, and it is all thanks to a feature known as cumulative bonus. Not familiar with the term? No problem, the following article will tell you everything you need to know about this feature and help you make the most of it. Read on to find out more!

So what is cumulative bonus?

Put simply, it is a reward for staying fit and refraining from making a claim. This benefit is provided in the renewal year by way of increase in sum insured to a certain percentage for every claim-free year.

How does cumulative bonus work?

It’s quite simple: if you do not make a claim in the current year, you will be eligible for the cumulative bonus when you renew the plan. The degree of the cumulative bonus also depends on the insurance provider, and its plans, but it is usually between 5% and 10%. Therefore, if you go without making a claim this year, upon renewal, your sum insured could increase by 10%, subject to a maximum of 50%.

What happens when I do make a claim?

Well, your accumulated cumulative bonus at renewal will get reduced by certain percentage. For example, if you make a claim, your cumulative bonus will get reduced by 10%, the way it was increasing every year due to nil claims in the policy.

Is my cumulative bonus valid if I switch insurers?

Your cumulative bonus stays with you, even if you decide to change your insurance provider. However, the manner in which the new insurance company implements your cumulative bonus could be different from your current insurance provider. Therefore, if you are planning to jump ship and change insurance companies, it makes sense to enquire about this aspect before doing so.

The simplest way to notch up a good cumulative bonus in health insurance is to stay fit and healthy. This will reduce the chances of falling ill and making a claim, ensuring that you make the most of the cumulative bonus on your health insurance policy.


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The Trade Name "DHFL" belongs to Dewan Housing Finance Corporation Limited and used by DHFL General Insurance Limited under license.
COCO (By DHFL General Insurance) is the Trademark used by DHFL General Insurance for its digital platform.