What Is CB (Claim Bonus) in Health Insurance?

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Claim Bonus (CB), also called No Claim Bonus (NCB), is a reward from your health insurance company if you do not make any claims in a policy year. This bonus is given to encourage you to use your health insurance wisely. Unlike motor insurance, where you get a discount on your premium, health insurance gives you a higher sum insured at no extra cost. This means your coverage increases every year, but your premium stays the same.


CB acts like a safety net for you. As medical costs keep going up every year, this bonus helps your coverage grow too. So, you will not fall short on coverage if a health emergency happens.


How Does Claim Bonus Work?


If you do not make any claim in a policy year, your insurer will add a certain percentage to your sum insured as a reward. This bonus can be 10% to 50% each year, depending on your plan. The bonus keeps adding up every year until it reaches a set limit, usually 50% to 100%, or sometimes even more in special plans.


For example, if your sum insured is ₹5 lakh and your plan gives a 20% CB, after one year without any claim, your coverage will become ₹6 lakh. After the next year, it will be ₹7 lakh, and it keeps increasing like this until it reaches the maximum limit.


The best part is your premium usually stays the same even though your coverage goes up. This makes CB a very cost-effective benefit in health insurance.


Types of Claim Bonus



  1. Cumulative Bonus


This is the most common type of bonus. Your sum insured goes up by a fixed percentage every year you do not make a claim. The bonus only increases your coverage, not your premium. This is a good option if you want more coverage without paying extra.



  1. Cumulative Bonus with Reduction


If you make a claim in a year, some plans will reduce your CB by a certain percentage. Your main sum insured stays the same, but only the bonus part is reduced.


Does CB Get Cancelled if You Make a Claim?


Not always. Many new health insurance plans let you keep part of your bonus even if you make a claim. Only some of the bonus may be reduced, depending on your claim and the policy rules. Your main sum insured will still be safe.


This is helpful because health problems can come without warning. Keeping some of your bonus means you still have enough coverage after a medical emergency.


Why Is Claim Bonus Important?



  • Keeps coverage aligned with medical inflation

  • Offers more value without increasing premiums

  • Encourages responsible claim behaviour

  • Helps build a larger financial safety net over the years


In India, hospital bills can use up your savings very fast. CB is a simple and useful way to add more value to your health insurance policy.