Terminology - Insurance : Deductible
Similar to co-payment is another term called 'Deductible'. The only
difference is that in case of the former, it's a percentage of the hospital
cost that is shared by policyholder, while in the latter case, it is a fixed
amount in rupee terms that is shared by policyholder.
Insurers, however have to define whether the deductible is applicable per
year, per life or per event.
Therefore, a deductible is a cost-sharing requirement under a health
insurance policy that provides that the insurer will not be liable for a
specified rupee amount of the covered expenses.
Before the insurer pays the claim amount, the amount of deductible has to
be deducted from the bill. It is the liability of policyholder to pay the
contracted deductible amount to the hospital.
Remember, like co-payment, there is no reduction of the sum insured even if
there is a deductible in the policy.
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