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Haven’t Made Any Claims? Here’s How the Cumulative Bonus Can Enhance Your Insurance Coverage?

So, you have finally decided to buy health insurance. And in the middle of your purchase, you wonder, “Wait, what if I don’t claim at all?”.

You could be concerned that your premium payments would go to waste. What if we told you that you could also get rewards for being healthy, i.e., for not filing claims?

Yes, we are discussing a bonus. This bonus is known in the health insurance industry as a “cumulative bonus”.


Illustration of Cumulative Bonus:

Rajesh is a white-collar executive in his 30s with a family of five. With aging parents and a young child, he is mindful of the medical circumstances that may emerge. Therefore, he has chosen to get a Bajaj Allianz mediclaim policy. Rajesh is clever. Be like Rajesh!

On the second renewal of his insurance policy, Rajesh figured that his coverage amount had increased. He became confused and decided to investigate the cause. He had, as it turned out, gotten his cumulative bonus. Rajesh was unaware he would be entitled to some health insurance bonus.

What is a cumulative bonus? 

A cumulative bonus (sometimes called a health insurance No-Claim Bonus) is a monetary reward paid you for not making any claim during the previous policy year. The advantage of a cumulative bonus may result in an increase in the sum assured.

How does the cumulative bonus function? 

Take Rajesh’s situation as an illustration. Rajesh has chosen a policy with Rs 5,00,000 in coverage and a maximum cumulative bonus of up to 50% of the total money covered upon renewal. Since he did not file a claim during the first year of his policy, his sum insured was increased by 10% at the time of renewal, bringing it to Rs 5,50,000. Assuming he does not file a claim the following year, his insured amount can increase by 20%, bringing it to Rs 6,00,000. This cumulative bonus benefit would stop when it reaches its maximum limit of increment, which may be 50% or 100% (depending on your insurer).

Before filing a claim, you should decide whether the expense is significant enough to warrant filing a claim. If you desire to be like Rajesh, you can, too, with a Bajaj Allianz mediclaim policy! What if, though, Rajesh files a claim during the second year? In that case, the cumulative bonus accumulated before may be void.

Unnecessary claims can impact your cumulative health insurance bonus and the coverage amount. The good news can be that it would be unaffected by OPD dental treatment, health examinations, and vaccine benefits. * Standard T&C Apply

Rajesh selected a family floater plan with Bajaj Allianz health guard, which can be incredibly cost-effective. It can be tailored for families and covers every family member. In this situation, the coverage would be more significant than an individual health insurance policy and can be utilized entirely if one of the insured members becomes ill.

The premium paid also brings tax benefits associated with health insurance and can be deducted under Section 80D of the Income Tax Act. Please note that tax benefit is subject to change in prevailing tax laws.

You, too, may feel safer and more confident that your family will receive better treatment if you choose the correct health insurance partner.

‘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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