Skip to content

NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Non-Life Insurance Products

Meera, 42, a salaried professional, buys a family floater health policy with a sum insured of ₹10,00,000. In the policy year she makes a claim of ₹4,00,000 and is admitted for no further treatment. Which statement is correct about a cumulative bonus (no claim bonus) on this policy at renewal, as commonly structured in Indian health policies?

After a claim year, the cumulative bonus is typically reduced or not added, according to policy terms, while the base sum insured stays as contracted. A claim does not increase cover, double it, or entitle the insurer to cancel the policy.

  1. AThe bonus is typically reduced or not added in a claim year, depending on policy terms, and the base sum insured stays unchangedCorrect
  2. BThe sum insured is automatically doubled because of the claim
  3. CThe policy is cancelled by the insurer after one claim
  4. DThe claim amount is added to the next year's sum insured

Explanation

Cumulative bonus is a reward for claim-free years; after a claim, many policies reduce or withhold it, while the base sum insured remains as contracted. A claim does not double the cover or add to it, and an insurer cannot simply cancel for a genuine claim.

Did you get it right without looking?

One question tells you little. A timed set on Non-Life Insurance Products shows your real accuracy, how long you take and where you lose marks.

Practise Non-Life Insurance ProductsFree diagnostic mock

More Non-Life Insurance Products questions