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Last updated on: May 20, 2025
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Read BioHealth insurance is a complicated orientating subject, and there are many things to learn about it. This Cumulative Bonus is just one of the features that are very vital in Indian health insurance plans. By 2025, when health care rates are gradually growing, awareness of cumulative bonus may save you some money and get more of the value of your policy.
A cumulative bonus in health insurance is a bonus offered to the policy holders by the insurance company in case they have not made any claims in the policy year. This is also referred to as a no claim bonus or a no claim bonus or NCB in region of health insurance.
The actual advantage? If you stay healthy and do not need to claim your health insurance, your sum insured (the amount your insurance will cover you for) increases the next year, but you do not have to pay extra premium for this increased coverage. The cumulative bonus is aimed at making people start taking care of their health and prevent superfluous claims.
The cumulative bonus has a working mechanism which is very simple. What does it go like?:
If you do not use your insurance (meaning you do not make any claim) for a full policy year, the insurance provider adds a certain percentage to your sum insured for the following year. In most cases, this bonus is between 5-50 percent per year free of claim, depending on your insurance plan.
In case of instance, suppose that you purchase a health insurance policy whose sum insured is Rs. 5 lakh. Your insurance provider is also providing cumulative bonus of 10 percent with each year without a claim:
There is a limit, however. Majority of insurance organizations limit the accumulative bonus to a maximum of 50 percent or 100 percent of the amount initially insured.
Once you do this in that year either the bonus accumulated thus far goes down or you end up not earning any bonus in the coming year. Others pay less of the bonus obtained, others pay back to the sum insured.
Insights of an Expert: As given by experts in insurance industry in 2025, today over 70% of the insured are preferring policies with cumulative bonus or enhanced no claim bonus, because it covers the next medical needs profitably.
Absolutely. In India, the level of medical inflation was approximately 13.5 percent in 2024 and is disclosed to escalate in 2025. By using the cumulative bonus, your health cover increases annually when you fail to make a claim and this assists in regulating the increment in treatment costs.
To give an example, when your sum insured increases to Rs 7.5 lakh to Rs 5 lakh to Rs 7.5 lakh in five claim free years, you are in a stronger position to bear a serious surgery or hospital stay without the additional cost of premium.
It does not, the bonus adds more cover onto the cover you have without an increase to its cost. But, the insurer can raise general premiums because of age, or medical inflation but not annually for cumulative bonus added.
So, we can contrast cumulative bonus with top up/ super top up health insurance:
| Feature | Cumulative Bonus | Top Up/Super Top Up |
|---|---|---|
| So what is it? | Additional sum insured on claim free years | The extra cover beyond base sum insured |
| Premium | No additional bonus fee | You pay additional top up |
| Claim Requirement | It only assists when you do not claim | It can be taken together with base cover |
| Limit | This is limited to between 50 percent and 100 percent | This is chosen to your needs |
Claim-free behaviour is rewarded cumulatively, with top up being handy to provide additional cover.
Did you know? Even on cumulative bonus, some major insurers in 2025 are now giving you up to 150 percent of your original sum insured so that it is the highest ever to be offered by any insurer in the business.
In India most of the individual and family floater health insurance plans are provided with the benefit of cumulative bonus. Nevertheless, the percentage of the bonus, the ceiling, and post-claims reduction policy may differ with insurers greatly.
For example:
You should never purchase without reading the policy wordings.
In common, cumulative bonus is absent in employer group health insurance plans. It is mainly a feature seen in retail (individual or family floater) policies.
Should you renew your policy with the same insurer you will transfer your cumulative bonus. If you port (switch) to another company, some insurers allow you to transfer the earned bonus, but make sure to check the portability terms.
Fincover dot com is an example of the websites where you can easily compare and apply health insurance plans with cumulative bonus features. Following is an easy step to step approach:
Q: Are there cumulative bonus on senior citizen health insurance?
A: Yes now quite a few health insurance programs for the senior citizen offer cumulative bonus. Find out at the insuring company about percentage and maximum amounts.
Financial Advisor: To the young policyholders, the financial advisors suggest the selection or financial plans with high cumulative bonuses when the policyholders are healthy and less likely to make claims during the initial years.
The two words are interchangeably used in India. But in certain policies:
The most Indian health insurance policies in 2025 however are on cumulative bonus adding sum insured. Enquire with the insurer always.
| Comparison | Cumulative Bonus | No Claim Bonus (Discount) |
|---|---|---|
| Explanation of operation | Sum insured rises | Renewal premium falls |
| What you receive | Greater cover | Reduced premium |
| A typical feature in | Indian health insurance | Motor insurance in foreign countries |
Did you know? In 2025, some innovative modern health plans offer a ‘super cumulative bonus’, doubling the sum insured in as few as 3 years for no claims.
Typically, your bonus is limited to 50-100 percent of what you were initially insured. Insurers are now even willing to pay up to 150 percent cap to the select few.
In case you increase your sum insured base at the time of renewal, some insurers base the future bonus calculation on the increased base and other insurers do not and continue to use the previous base. Ask your provider to obtain precise information.
Generally, any claim that uses your sum insured whether on hospitalization, daycare procedure or significant ailment impacts on the bonus. Minor claims like non-covered checkup or OPD will not have any implications to the bonus.
Q: Will a small claim result in my losing all my cumulative bonus?
A: Yes, in most policies, no longer all of the bonus on minor claims are reduced by insurers. Never forget to read your policy clause.
| Parameter | Details |
|---|---|
| So what is it? | No claims added free cover |
| Average rate of bonuses | 10 percentage- 20 percent per year of free claims |
| Maximum limit | 50 percent to 150 percent of base sum insured |
| Premium for bonus | Zero (built in feature) |
| Individual, family floater policies | are available |
| Effect of claim | Bonus can recover or lower |
| Policy comparison | Check fincover dot com |
Q: What are cumulative bonus and restoration benefit of health insurance?
A: Restoration benefit resets your sum insured in a year plus 1 in case it runs out during the year and cumulative bonus increases your total sum insured the following year in the event you have no claims.
Q: Will cumulative bonus be transferable in case of change of insurer?
A: It can be transferred in some insurers on No-Break policy porting. Never change without checking.
Q: Does critical illness plan have cumulative bonus?
A: Very much not; this is one of the general health insurance benefits, which is unlikely to be observed in independent critical illness policies.
Q: When is cumulative bonus added following a no claim year?
A: It is added right before a policy renewal following each claim free year.
Q: Does it mean that, by making a claim of a minor illness, I lose all the cumulative bonus?
A: On old-fashioned plans, yes, but some of the policies nowadays in 2025 do not take away the whole bonus, only part.
Q: Is cumulative bonus possible to exceed base sum insured?
A: The bonus accrues up to the amount suggested by the insurer- specified cap, in other cases, up to 150 percent of base coverage.
Q: Where will cumulative bonus terms of health policies be compared best?
A: To obtain side by side comparison and apply with ease go to fincover dot com.
Q: Can medical insurance of parents be done under cumulative bonus?
A: Yes, there is individual and family floater health insurance to the parents. See brochure on products.
Checking cumulative bonus should be on the list of things that you do in case you are purchasing health insurance plan in 2025. It also pays you to remain healthy and also offers greater coverage at no additional charge. To get the best rates and easy comparison just go to reliable web platforms like fincover dot com to ensure that you get as much benefit as you can to you and your family.
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Written by Prem Anand, a content writer with over 10+ years of experience in the Banking, Financial Services, and Insurance sectors.
Prem Anand is a seasoned content writer with over 10+ years of experience in the Banking, Financial Services, and Insurance sectors. He has a strong command of industry-specific language and compliance regulations. He specializes in writing insightful blog posts, detailed articles, and content that educates and engages the Indian audience.
The content is prepared by thoroughly researching multiple trustworthy sources such as official websites, financial portals, customer reviews, policy documents and IRDAI guidelines. The goal is to bring accurate and reader-friendly insights.
This content is created to help readers make informed decisions. It aims to simplify complex insurance and finance topics so that you can understand your options clearly and take the right steps with confidence. Every article is written keeping transparency, clarity, and trust in mind.
Based on Google's Helpful Content System, this article emphasizes user value, transparency, and accuracy. It incorporates principles of E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness).
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