For example, under Future Generali's Health Suraksha Plan, the sum insured increases by 10 per cent for every claim-free year. It can go up to a maximum of 50 per cent.
In the Health Total Plan of Future Generali, for every claim-free year, the sum insured increases by 50 per cent, which adds to the no-claim bonus. But the bonus cannot exceed 100 per cent of the basic sum insured. Hence, it accumulates for two years only.
“The cumulative bonus is calculated on the basic sum insured and not on the increased sum insured. Also, the bonus for any policy can be maximum 100 per cent of the sum insured of the first policy year,” says Shreeraj Deshpande, senior vice-president and head of operations, customer service and health insurance, Future Generali India Insurance.
If a claim is made in a particular year, the cumulative bonus is reduced at the same rate at which it accrued. “In case a claim is made under the policy, the cumulative bonus is reduced by a percentage as specified in the policy (usually 10 per cent) at the next renewal. However, this reduction does not reduce the sum insured below the base sum insured of the policy,” says Puneet Sahni, head, product development, SBI General Insurance.
In case the health insurance policy is ported, the portability benefits are applicable to the sum insured under the previous policy along with the cumulative bonus acquired from that policy. The premium charged is applicable to the total sum insured, base and cumulative bonus. If the same sum insured is not available in the new insurance company, the next sum insured band will be considered. “If a policy expires due to non-payment of premium within the grace period, the accrued bonus benefit also expires,” says Navin Chandani, chief business development Officer, BankBazaar.com. Medical inflation is estimated at 15-20 per cent. No-claim bonus provides added benefit and can help counter the impact of medical costs.