Ever increasing cost of medical treatment will no longer be a reason to worry. We increase the sum insured by 5% for every claim free year up to a maximum of 50%. For example, if you have coverage of Rs. 1 Lac, an additional Sum Insured of Rs. 5,000 will be allowed as Cumulative Bonus every year, till your cover reaches 1.5 Lacs, as long as there is no claim.
If a claim is made in any particular year, the cumulative bonus accrued would be reduced at the same rate (5%) at which it has accrued.
Taking the above example, for a claim made (any amount) in the policy year, the Cumulative bonus will be reduced by the amount (say Rs. 5000) earned.
If a scenario arises, where the accumulated bonus has been reduced to nil and a claim is still made, there will be no effect on the policy. The base sum insured will not be reduced.