Page 214 - Misc Ebook IC 78

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(b) Surplus basis - Under the surplus treaty, the ceding
company reinsures the surpluses over and above its
retention in terms, and within the size of the treaty.
The size or capacity of the treaty is expressed in
integral multiples of the ceding company's retention.
There may be more than one surplus treaty,
depending on the size of the risks the ceding company
may have and the facility that they may require.
These treaties are known as First Surplus, Second
Surplus, Third Surplus and so on. Administration of
the accounts is on the basis of premium or claim
bordereaux which are detailed item-wise statements
of cessions and claims. In addition, there are
commissions recoverable from the treaty
reinsurances.

(c) Pool basis

(ii) Cumulative Bonus in Mediclaim Insurance- In case
of a continuous Mediclaim insurance without any break
and without any claim, the sum insured gets increased
by 5% for each claim free year of insurance subject to
a maximum of 10 years. In the event of a claim the

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