What Is CB Amount and How Is It Calculated?

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CB amount in health insurance means Cumulative Bonus. This is a reward from your insurer for not making any claims in a policy year. If you stay healthy and do not claim, your sum insured goes up, but your premium stays the same. Over the years, this bonus can give you more coverage and help you handle big medical bills without extra cost.


Why Is the CB Amount Important?


Every year, medical costs go up. With a higher sum insured, you get better financial support when you need it. The CB amount lets you increase your coverage every year without paying more. This extra cover is very useful if you have a big treatment, a long hospital stay, or more than one health problem in a year. You can feel safe knowing your cover keeps growing, even if you do not change your plan.


How Does the CB Amount Work?


If you finish a policy year without making a claim, your insurer adds a bonus to your sum insured at renewal. There are mainly two types of bonuses you can get:



  1. Standard Cumulative Bonus:
    A fixed percentage like 5%, 10%, or 20% is added to your sum insured for every year you do not make a claim. After a few years, this can add up to a big increase in your cover.

  2. Super Cumulative Bonus:
    Some plans give a much higher bonus, especially in the first few claim-free years. For example, your sum insured can double in just a few years if you do not make any claims. This is good for families who want more protection quickly.


How Is the CB Amount Calculated?


The CB amount depends on three things: your base sum insured, the bonus percentage, and how many years you stay claim-free.


Here is an easy way to understand it:



  1. Start with your base sum insured.
    For example, ₹5 lakh.

  2. Apply the bonus percentage.
    If the cumulative bonus is 10% per claimfree year, then the CB amount for one year becomes:
    10% of ₹5 lakh = ₹50,000

  3. Add the bonus to your sum insured.
    After one year, your new cover becomes:
    ₹5,00,000 + ₹50,000 = ₹5,50,000

  4. Accumulate it over multiple years.
    If you stay claimfree for three years, the CB amount will accumulate:
    ₹50,000 × 3 = ₹1,50,000
    So your total coverage becomes:
    ₹5,00,000 + ₹1,50,000 = ₹6,50,000


Most health insurance plans have a maximum limit for the bonus. Usually, you can get up to 50% or 100% of your original sum insured as a bonus. After you reach this limit, you will not get more bonus until you make a claim and your sum insured goes back to the base amount.


Does CB Reduce If You Make a Claim?


Yes, in many plans, if you make a claim, some of your bonus may be reduced at the next renewal. But some new policies let you keep your bonus even if you make a claim.