Insurance Terminologies – III

In this 3rd installment of Insurance Terminologies series, let’s look at couple of the jargons which comes across during health insurance purchase or claims.

  • Cumulative Bonus: Cumulative Bonus, as the name suggests, is an increase in the sum insured for the claim free year. This terminology is used in health insurance. This means if the customer has not made any claim for an year, there will be a percentage increase in sum insured which is generally 5% to 10% and can also range from 10% to 50% which varies from insurer to insurer. The maximum bonus given is 50%. One important thing to be noted is that the cumulative bonus is provided on the basic sum insured. For example, if the basic sum insured is INR 100000 and there is no claim made by the customer, the sum insured will be increased by 10% at the time of renewal and hence the new sum insured becomes INR 110000 for the next year. If no claim is reported again in the subsequent year, the cumulative bonus of 10% (10% of 100000=10000) will be provided and the total sum insured will become INR 120000 ( 110000+10000= 120000). As you can see cumulative bonus is calculated on basic sum insured which is INR 100000 in the given example and it is accumulated for every claim free year. The cumulative bonus is added to the sum insured of preceding year which becomes the new sum insured for subsequent year (110000+10000= 120000).
  • Waiting period: Waiting period is the duration for which the coverage is not provided. Health insurance policies have waiting period of 30-60 days. This means any claim made during this period is not payable even though if the loss occurred due to the risks covered in the policy. Any claim made post waiting period is payable provided the loss would have occurred due to the perils covered in the policy. One important point to be noted is that for pre-existing disease, waiting period is 48 months (4 years). Pre-existing diseases are covered after 4 years from the inception of the policy.

Ashish Kumar


Selfie deaths…

Generally, most of us are fond of taking selfie whenever we get a chance. The word “selfie” was added in Oxford English dictionary in 2013. But are you aware there are many injuries and deaths which occurs at the time of taking selfie. According to a study by scholars from Carnegie Mellon University and Indraprastha Institute of Information Delhi, India has more selfie-related deaths than any country in the world. The findings of the study reveals that there were 127 deaths due to selfie over the past two years, of which 76 deaths occurred in India alone. So, we are the topper when it comes to selfie deaths.  Let us look at the number of casualties occurred in some countries due to selfie which is depicted in the following table. The data is as per  the above mentioned study.

Country No of casualties
India 76
Pakistan 9
Russia 6
Philippines, China 4
Spain 3


As it can be inferred from the data above, selfie deaths have now become a serious issue. There is nothing wrong in taking selfies but it should be taken with precaution. I also take selfie sometimes but what I want to point it out with this article is that, do take selfie but with care. Don’t put your life on stake unnecessarily. Taking selfie is not bad but the only thing is it should be taken with precaution. Do look around before taking selfie to check whether you are safe enough or not. Don’t take risk as life is precious. This is an alarming situation and it can be checked provided people should pay precautions while taking selfies.

And last, if you understand this and wise enough to take the precaution, then do sing this song while taking selfie, “Chal beta selfie le le re.” 🙂

– Ashish Kumar