Insurance companies want policyholders to pay 10% of health claims
Non-life insurance companies in India are proposing a mandatory 10% co-payment for retail health insurance claims starting in 2027. The move aims to curb rising healthcare costs, though critics argue it may discourage consumers from purchasing high-value policies.
Why it matters
This policy shift could significantly alter the affordability and structure of health insurance for millions of Indian citizens, potentially impacting healthcare access.
MUMBAI: Non-life insurers are considering a 10% co-payment by policyholders on retail health policies from Jan 1, 2027, with the patient's contribution capped at Rs 5 lakh per claim. In return, customers would pay lower annual premiums.The proposal, being considered by the General Insurance Council, would pair the change with common hospital empanelment and a formal mechanism for settling disputes between insurers and hospitals. The arrangement would require even those with comprehensive health insurance to keep funds for medical emergencies, as they would have to pay 10% of admissible inpatient hospitalisation costs, including those arising from accidents, whether claims are settled through cashless procedure or reimbursement.Outpatient claims would remain outside schemeThe proposal covers retail indemnity products, retail-under-group policies, indemnity components of combi products, internal migrations and portability business.
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