Health Insurance Term
Co-payment
A fixed percentage of each claim that you pay yourself.
What is Co-payment?
Co-payment (or co-pay) is the share of every claim you agree to pay, expressed as a percentage. If your policy has a 20% co-pay, you pay 20% of each approved claim and the insurer pays 80%.
Co-pay clauses lower your premium and are common in senior-citizen plans. You can often opt out for a higher premium.
Example
On a ₹1 lakh claim with 20% co-pay, you pay ₹20,000 and the insurer pays ₹80,000.
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