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Plain-English definition

What is Insurance co-payment?

A co-payment is the portion of an eligible insurance claim that the policyholder must pay under the policy terms.

Reviewed by Kshitij Jain, Principal Officer · SEBI Investment Adviser INA000022172 · Updated 24 October 2026

How Insurance co-payment works

It is often expressed as a percentage and can apply only in specified circumstances. Co-pay, deductible, exclusions and sub-limits are distinct ways the final insurer payment may be lower than the bill.

A rupee example

A 20% co-payment on an eligible ₹1 lakh claim means the policyholder bears ₹20,000 before considering other policy adjustments.

The example isolates one idea so the arithmetic is visible. Real outcomes can include taxes, fees, cash-flow timing and market movement that the simplified example does not model.

Why it matters for your family

Estimate the rupee exposure, not only the percentage. Families with limited cash reserves may prefer a different premium-cost trade-off than those able to absorb a larger claim share.

Questions people ask

What does Insurance co-payment mean?
A co-payment is the portion of an eligible insurance claim that the policyholder must pay under the policy terms.
Why does Insurance co-payment matter for a family?
Estimate the rupee exposure, not only the percentage. Families with limited cash reserves may prefer a different premium-cost trade-off than those able to absorb a larger claim share.
Where can I verify information about Insurance co-payment?
Start with IRDAI, linked on this page, and the current official document for the product or tax year involved.

This page is general education, not personalised investment or tax advice. Rules can change; verify current official documents before acting. Investment in securities markets is subject to market risk.