InsuranceFinancial Glossary
Cumulative Bonus
Definition
An increase in your health insurance sum insured for every claim-free year, similar to No Claim Bonus. The key difference is that some insurers let you retain cumulative bonus even after making a claim, while NCB typically resets on claim.
Why It Matters
Over 5-10 claim-free years, cumulative bonus can double your sum insured at no extra premium. Check whether your insurer resets it on first claim or only reduces it partially — this detail can make a significant difference in long-term coverage adequacy.