Do we lose the cumulative bonus if we reduce the sum assured amount while renewing

[Veerendra]

Hello everybody,

If we reduce the sum assured amount while renewing our mediclaim policy will we lose the cumulative bonus.

For e.g if the sum assured is Rs. 2 lacs for the previous year and cumulative bonus is Rs. 55,000/- and while renewing if I take a policy with sum assured of Rs. 1.5 lacs , will I lose the cumulative bonus.

Pls. let me know.

Hope to see a lot of responses and many thanks in advance for the same.

Regards,

Veerendra Darakh

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[ankit]

What is Cumulative Bonus?
Cumulative Bonus shall mean any increase in the sum assured granted by the insurer without an associated increase in premium.

How it is used?
The Limits under eligible health insurance Policy shall be progressively increased by slabs of 5% of the Sum Insured in respect of each claim-free year of insurance, subject to a maximum accumulation of 10 slabs of cumulative bonus. Sum Insured for the purpose of calculation of Cumulative Bonus shall be the expiring Sum Insured or the revised Sum Insured whichever is lower. Where a claim has arisen in respect of any insured person under the expiring policy, the earned cumulative bonus, if any, shall be reduced by 1 slab of cumulative bonus. However under no circumstances shall the Sum insured under the policy be reduced on account of reduction of cumulative bonus. Cumulative bonus will not be considered for settling claims for pre existing disease.

There is no standard and each policy T&C should be checked with Insurer.

Hope above helps!

[Veerendra]

if my sum assured is Rs. 100 and cumulative bonus is Rs.10. While renewing I go in for a sum assured of Rs.80. In that case will I lose that Rs. 10 . If I have an individual mediclaim and now I wish to take a floater for my family what will happen to the sum assured.

Will the cumulative bonus be carried forward if i take a mediclaim policy of some other company.

Can somebody clarify.

Regards,

Veerendra Darakh

[>take]

I have bought a policy of sum insured of 2 lakh, a few years back and have cumulative bonus of Rs. 50,000; what would be the new sum insured after porting the policy to new insurer – 2 lakh or 2.5 lakh?
It would be 2.5 Lakh. For example – A person with insurer ‘X’ has a sum insured of Rs 2 lakh and cumulative bonus of Rs 50,000. When he shifts to insurer ‘Y’ his sum insured will automatically beRs 2.5 lakh. However, if insurer ‘Y’ has no product offering Rs 2.5 lakh as sum insured, it will have to offer the nearest higher slab of, say, Rs 3 lakh. While the premium will be charged on Rs 3 lakh, the portability benefits will be limited to Rs 2.5 lakh.

Source - PW.com

[Veerendra]

I do not even wish to change the company from whom I have bought the mediclaim policy. I had not taken a floater policy . I had taken individual mediclaim for my family within a single policy. I now wish to take a floater policy and so I asked my agent to reduce the sum assured while renewing so that the premium becomes less and so that I can take a floater policy. My agent says that if I reduce the sum assured while renewing I will lose the cumulative bonus. Is he right ?

Pls. let me know.

Regards,

Veerendra Darakh

[>take]

I do not even wish to change the company from whom I have bought the mediclaim policy. I had not taken a floater policy . I had taken individual mediclaim for my family within a single policy. I now wish to take a floater policy and so I asked my agent to reduce the sum assured while renewing so that the premium becomes less and so that I can take a floater policy. My agent says that if I reduce the sum assured while renewing I will lose the cumulative bonus. Is he right ?

Pls. let me know.

Regards,

Veerendra Darakh

Can you please post scan copy of the statement what you agent is agreeing OR broucher of the policy OR any website link, that cought throw light on this?