What is cumulative bonus?

[Shinoy Chenatra]

What is cumulative bonus?

[Nikhil Shetty]

If no claim has been made in Hospitalization cover and the Policy is renewed with the same insurance company without any break, they will apply a cumulative bonus to the next Policy Year by automatically increasing the Sum Insured for the next Policy Year by 5% of the Basic Sum Insured for this Policy Year.

[Arti · Accepted solution]

Cumulative Bonus is the bonus or rather a reward that a policyholder gets for remaining fit and not filing a claim. The benefit of cumulative bonus is granted in the year of renewal by making an increase in the sum insured amount, only up to a certain year for every claim-free year.