What is cumulative bonus ?
The compensation payable for the death, loss of limb/s or sight or permanent total disablement is normally increased by 5 percent of the Capital Sum Insured for every completed year of insurance. This compensation payable in event of any of the abovementioned medical contingencies is known as Cumulative Bonus. However, the cumulative bonus is subject to a amount that can never exceed 50 percent of the Capital Sum Insured.
If the insured person does not prefer any claim in the expiring policy, he is entitled to 5% cumulative bonus for every such claim free year subject to maximum of 50% cumulative bonus that means the sum insured under the renewed policy will be increased by 5% every year without charging any additional premium.
Related Questions
- Is cumulative bonus in my existing individual mediclaim policy from one insurer transferable to an individual or floater mediclaim policy from any other insurer?
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- What is cumulative bonus ?
