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Wednesday, April 13, 2016

Terminology - Insurance : Deductible

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.



Terminology - Insurance : Deductible Reviewed by S. Chitra on April 13, 2016 Rating: 5 Terminology - Insurance : Deductible Similar to co-payment is another term called 'Deductible'. The only difference is that in ...

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