What Is Co-Payment?

This term means that this is a cost-sharing requirement where the policyholder/insured will bear a specified percentage of the admissible claim amount. However, this does not reduce the sum insured. It is a kind of margin money the patient brings in while getting admitted for cashless treatment. Health insurance companies often resort to this arrangement since the cost of treatment for senior citizens could be high and this clause ensures that at least a part of the cost is picked up by the insured.