What To Know About Cumulative Bonus in Health Insurance

  • Author :
  • TATA AIG Team
  • Published on :
  • 26/06/2020

A Cumulative/No-Claim Bonus basically is a monetary benefit granted to you on account of no claim having been filed in the past year of the policy period.

What To Know About Cumulative Bonus in Health Insurance

Rohan is a 30-something white-collared executive with a family of 5. He is aware of the medical contingencies that may arise with his ageing parents and a small kid. Therefore, he has opted for a health insurance plan. Rohan is smart. Be like Rohan!

On his second year of policy renewal, Rohan figured that his sum insured had increased. He got confused and decided to check the reason. It turned out; he had received his cumulative bonus. What Rohan did not know was that his health insurance policy comes with no-claim bonus advantages.

What is Cumulative Bonus? A Cumulative/No-Claim Bonus basically is a monetary benefit granted to you on account of no claim having been filed in the past year of the policy period. For a Cumulative Bonus, the benefit can be either an increase in the sum assured or a decrease in the premium paid.

How does Cumulative Bonus work? Let us take Rohan’s scenario as an example. Rohan has opted for a policy that grants him a cover of Rs 5,00,000 and a cumulative bonus of 50% at the time of renewal, up to 100% of the total sum insured. Now since he did not submit any claim in the first year of his policy, at the time of renewal, an additional Rs 2,50,000 was added to his sum insured taking it up to Rs 7,50,000. Assuming he does not file a claim the next year too, his insured sum will again increase by Rs 2,50,000 taking the sum insured to Rs 10,00,000. This is when the increment will stop as 100% is the upper limit. Rohan gets this benefit with the Tata AIG MediCare Premier (UIN: TATHLIP18005V011819) health insurance policy.

You can too if you choose to be like Rohan! Now, what if Rohan files a claim in the second year? Well if he does, the cumulative bonus will be reduced by 50% at the time of renewal. But before you file any claims, consider whether the expense is big enough that you need to make a claim because if not, you can save up on your bonus. Unnecessary claims can affect your No-Claim Bonus, and your sum insured. But the good news is that it does not get affected by OPD dental care, sharing accommodation, health check-ups and vaccination benefits.

Tata AIG MediCare Premier While investing in Tata AIG MediCare Premier, Rohan even got a 15 days free-look period with Tata AIG, which implies that he can change his mind about keeping the policy within 15 days of having registered for it. The premium paid will be refunded, after deducting relevant costs.

Rohan opted for a family floater plan, which works wonders in terms of cost benefits. It is tailor-made for families and is made to cover every family member, to a maximum of 7 members. The cover, in this case, is higher than an individual health insurance policy and can be used in whole if one of the insured members is unwell. The premium paid does not worry Rohan either, since he knows about health insurance tax benefits & can claim it for deduction under section 80D of the Income Tax Act. Another brownie of investing in a health insurance plan!

From a range of 4000+ hospitals, Rohan can choose the one that suits him. He can get the claim benefits even if he opts for treatment outside India, so long as the diagnosis was made in India, as per the global cover of Tata AIG MediCare Premier. Rohan’s choice of Tata AIG MediCare Premier has been a smart one. He feels more secure and is confident of better care provided to his family and so can you by choosing the right health insurance partner!

To know more, Call Toll Free No: 1800 266 1363 Or visit: https://www.tataaig.com/health-insurance/medicare

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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