Question

What is the purpose of a "cumulative bonus" in health insurance?

a.

To increase the premium amount each year

b.

To encourage policyholders to make more claims

c.

To provide a bonus on the sum insured for each claim-free year

d.

To reduce the coverage over time

Answer: (c).To provide a bonus on the sum insured for each claim-free year Explanation:A "cumulative bonus" in health insurance is provided to encourage policyholders to continue renewing their policies without making claims. It offers a bonus on the sum insured for each claim-free year.

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Q. What is the purpose of a "cumulative bonus" in health insurance?

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