Health Insurance Term
Sum Insured
The maximum amount an insurer will pay for claims in a policy year.
What is Sum Insured?
The sum insured is the maximum amount your insurer will pay towards claims during a policy year. In health insurance it works on an indemnity basis — you're reimbursed for actual expenses up to this cap.
Choosing the right sum insured matters: too low and a big hospital bill can exceed it; a super top-up is a cheap way to raise your effective cover.
Example
With a ₹10 lakh sum insured, the insurer pays your covered hospital bills up to ₹10 lakh in a year.
Related terms
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