Cumulative Bonus in Health Insurance

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All about Cumulative Bonus in Health Insurance

So, you’re thinking of buying health insurance. And amidst your decision-making process, you think, “Wait a minute, what happens if I don’t make a claim at all”?

You may be worried that your premium payments will simply go down the drain. But what if we tell you that you can get rewarded for staying healthy, i.e. for not making any claims, too?

Yes, we’re talking about a bonus. In insurance terms, this is referred to as a ‘cumulative bonus’.

What is a Cumulative Bonus?

A cumulative bonus in health insurance refers to a monetary advantage you gain as a reward for not making any claims in one policy year. It is very similar to the concept of a no-claim bonus in a car insurance.

However, the type of benefit you receive differs from one health insurer to another. Some insurers reward you with a discount in your premium for your consequent policy year, while some insurers offer an additional sum insured to your health insurance, without any increase made in your health insurance premium.

Typically, most insurers offer a 5% to 50% increase in sum insured for each claim-free year.

At Digit, we give you the benefit of an increase in your Sum Insured, up to 50% for every claim-free year (with a maximum benefit of 100%).

Let’s simplify this with an example:

Let’s say you are a health insurance policyholder who has been insured for ₹10 lakhs. In case you don’t make any claims in your first year, you could get a 50% increase, which makes your sum insured ₹15 lakhs.

And, if you continue with no claims for your second year, your total increase in Sum Insured would then increase by 100% from what you initially started with; i.e. ₹20 lakhs!

Note: This was just an example to show how an increase to your Sum Insured would work with a Cumulative Bonus with respect to Digit’s Health Insurance (Infinity Wallet Plan). Every insurance plan will offer different rates of increase in sum insured or discounted premium.

What’s the limit of cumulative bonus?

Unlike no-claim bonus in car insurance, there isn’t any year-wise fixed cumulative bonus and this differs from every insurer. Few insurers go as high as 50% too.

With Digit, you can be rewarded with a 50% increase in Sum Insured for every claim-free year, up to a maximum of 100%, i.e. when you don’t make a claim for two consecutive years.

Cumulative Bonus Table as per Digit’s Health Insurance Policies

Claim-free Years	Cumulative Bonus (Double Wallet Plan)	Cumulative Bonus (Infinity Wallet and Worldwide Treatment Plan)
After 1 year	10%	50%
After 2 years	20%	100%
After 3 years	30%	N/A
After 4 years	40%	N/A
After 5 years	50%	N/A
After 6 years	60%	N/A
After 7 years	70%	N/A
After 8 years	80%	N/A
After 9 years	90%	N/A
After 10 years	100%	N/A

Benefits of Cumulative Bonus in Health Insurance

You will either get a discount on your premium, or have more money as part of your sum insured.
You get to save money upon renewal by getting more coverage at the same premium.
For some plans, you can continue to accumulate your cumulative bonus for up to a maximum period of 10 years.
In case your hospital bills are low, you can choose to pay them yourself and make the most of the cumulative bonus.

P.S: Always remember to renew your health insurance policy on time, lest the cumulative bonus expires. After all, it comes as a reward for staying healthy.

Explain it like I'm five

We're making insurance so simple, now even 5-year-olds can understand it.

Maya loves eating chocolates every day. Her parents tell her that if she goes without eating chocolates for a week, she will get a truffle cake and also, her favourite choco-bar every Sunday. Her parents’ offer is just like the cumulative bonus in health insurance.

FAQs about Cumulative Bonus in Health Insurance

All

What is the difference between cumulative bonus and no claim bonus in health insurance?

They are essentially the same thing in health insurance, where you can get a discount on your premium or an increase in your sum insured for every claim-free year. However, sometimes cumulative bonus refers to an increase in the sum insured alone.

What is the maximum amount of cumulative bonus I can receive at Digit?

At Digit, we offer up to 50% increase in sum insured for your first claim-free year and 100% for your second consecutive claim-free year.

Will my cumulative bonus be affected if I shift to another health insurer?

As long as you do the same before your health insurance policy expires, you can port to a new health insurer without your cumulative bonus being affected.

Keep in mind that the kind of benefit offered by the new company may change (premium-based or sum-based). Additionally, you can transfer the entire bonus if you are below 45 years of age, and just 50% of the bonus if you are above 45 years.

What will happen to my cumulative bonus if I don’t renew my policy?

Your cumulative bonus only while renewing your health insurance policy. Thus, if you forget to renew it, your accumulated cumulative bonus will no longer be valid.

Can I get 100% premium discount on my health insurance as a benefit under cumulative bonus?

Most health insurance companies have a specified limit under their no-claim or cumulative bonus clause. Your maximum discount on premium or increase in sum insured will depend upon this fixed percentage.

At Digit, we offer 50% increase in the Sum Insured for the first claim-free year and a 100% increase in Sum Insured when you make no claims for two consecutive years (with our Infinity Wallet Plan and Worldwide Treatment Plan). 

Can I get the benefit of a cumulative bonus if I have completed 10,000 steps daily?

A lot of insurers now offer this benefit as a pretext to staying healthy.

At Digit too, you can benefit from a cumulative bonus as long as you have stayed healthy and made no claims in the year. We don’t need you to prove it with the number of steps or any other parameters apart from your claim record! 😀

Download Health Insurance Policy Wordings

Click here for Policy wordings | Digit Health Care plus policy - Benefit illustration

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Disclaimer #1: *Customer can choose options at the time of availing insurance. Premium amount may vary accordingly. Insured is required to disclose any pre-existing condition or on going treatment before policy issuance in the proposal form.

Disclaimer #2: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.

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