If you are thinking of getting health insurance in such a crisis situation, when the world is under the attack of the pandemic, you are heading in the right direction. But wait, did you question what if you do not claim any amount in a year, at all?

Many people hesitate to get health insurance by thinking that their premiums might go to waste. But that is not always the case. You can have an added advantage the next year in the form of a cumulative bonus. 

What is Cumulative Bonus in Health Insurance

In health insurance, a cumulative bonus means an advantage that an insurer gives you for not claiming any amount in your health insurance in 1 policy year. 

Let us simplify it for you. For instance, you have a mediclaim policy of six lacs, but you did not make any claim in the first year. So, the cumulative bonus entitles you to a certain monetary benefit. In this case, the insurance company may give you a 10% increase on your claim amount.

So, for the next year, your total health insurance amount will be 6,60,000. However, many insurers also offer a discount on the insurance premium amount you pay each year. The type of benefit you receive and the percentage of reward varies from insurer to insurer.

Types of No-Claim Bonus

There are two types of no-claim rewards that you can get for not claiming any amount from health insurance in one policy year. They are: 

  • Cumulative Bonus: Your policy insurer can reward you in the form of giving you an added coverage amount for the coming year if you qualify for a cumulative bonus in mediclaim policy. 
  • Reduction in Premium: You can also receive a reward from the insurer in the form of a discount on the premium you have to pay in the coming year for your health insurance. It is an alternative to the cumulative bonus that insurance policy companies offer.

How Does Cumulative Bonus Health Insurance Work? 

Suppose Mr. x purchased health insurance with the coverage amount of 6lacs for each policy year. If he makes no claim in that year, he would be entitled to a 10% claim in the first no-claim year. In the following year, he would get a 20% on the following year, and in the next third year, he would get a 30% and so on.

No-Claim Year

Cumulative Bonus Percentage

Coverage Amount (INR)

Year 1


Year 2



Year 3



Year 4



Things to Know about Cumulative Bonus Health Insurance

If you are a first-time purchaser of a cumulative bonus mediclaim policy, then there are certain essential facts and figures you might want to know. 

  • There is a limit on the amount of cumulative bonus that a health insurance policyholder can increase. Generally, the upper capping of this reward is between 50% to 100%. 
  • The minimum increase in cumulative bonus would be 5% at least, irrespective of the insurance company.
  • You can opt for a cumulative bonus in case of individual health insurance and family floater insurance plan as well. 
  • To get entitled to a cumulative bonus, the policyholder must ensure that he pays the premium on time. If the policy lapses, he shall not be entitled to a cumulative bonus. 
  • All the health insurance policies do not include the benefit of a cumulative bonus. You must check your policy document beforehand to know about CB. 
  • The cumulative bonus can be accumulated for a maximum tenure of 10 years. 

FAQs - Frequently Asked Questions

Q1. What happens if two health insurance policies with cumulative bonuses? 

In case there is an overlap in the insurance, you can claim the entire sum insured by you. In these cases, the CB will not be zeroed down. 

Q2. Will I qualify for a cumulative bonus if I claim a nominal amount? 

In previous times, if you made a nominal insurance claim, your cumulative bonus was likely to go down by 10% to 50%, depending on the rules and regulations set by the insurer. However, the IRDAI has made the rule more flexible these days. If you make a nominal claim on the sum insured, then the cumulative bonus would go down by the percentage of the sum you have claimed. 

Q3. What’s the maximum cumulative bonus I can receive? 

The IRDAI mandates that the cumulative bonus in health insurance shall not exceed a maximum limit of 50% to 100%.

Q4. What will happen to the cumulative bonus if I choose another health insurance company? 

In case you switch over to another health insurance policy, your current CB will not be forfeited. It will get transferred to your new policy. However, the exact kind or amount of benefit you would receive depends on the terms and conditions of the new insurance company.

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