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.
