Term
No Claim Bonus
No claim bonus (also called cumulative bonus) increases your cover for free every year you do not make a claim.
What it means
For each claim-free year, the insurer adds a percentage to your sum insured at no extra premium — often 10% to 50% a year, up to a cap like 100% or 200%. So a ₹10 lakh cover can quietly grow to ₹15–20 lakh over a few healthy years.
Why it matters
- It rewards staying claim-free with more cover for the same premium.
- Some plans cut the bonus if you claim; the best ones keep it intact.
- A high bonus can be a cheaper way to reach a large cover than buying a bigger base plan.
Practical tips
- Check the yearly bonus rate and the maximum it can build up to.
- See what happens to the bonus when you do make a claim — does it drop, and by how much.
- Do not rely on bonus alone for a big cover; it builds slowly and needs claim-free years.