Insurance
Co-pay
Also known as: Co-payment
A fixed share of every claim you must pay yourself, with the insurer covering the rest.
A co-pay means you pay a set percentage of each claim and the insurer pays the remainder.
Policies with co-pay have lower premiums but cost you more at claim time, so weigh the trade-off.
Co-pays are common in cheaper plans and senior citizen policies, so check the clause before buying.
For example
With a 20% co-pay on a ₹2L hospital bill, you pay ₹40,000 and the insurer covers the remaining ₹1.6L.