Mandatory 10% Co-Pay for Health Insurance Faces Regulatory Hurdle
What Happened
General insurers have discussed introducing a 10% co-payment on retail health insurance claims, under which policyholders would bear a portion of inpatient hospitalisation costs, capped at ₹5 lakh per claim, in exchange for lower premiums. However, industry executives say the proposal is unlikely to be approved by the Insurance Regulatory and Development Authority of India (Irdai) in its current form because it could be difficult to justify to customers, especially those who buy high-value policies for full coverage.
Key Takeaways
The proposal reflects insurers’ concerns over rising healthcare costs and claim inflation, but regulators appear wary of limiting consumer choice. If rejected, policyholders are likely to retain access to comprehensive health plans without a mandatory co-payment requirement.