Co-payment, often just called co-pay, is a clause found in some health insurance policies that requires you to bear a fixed percentage of every claim amount out of your own pocket, with the insurer paying only the remaining portion. For example, a policy with a 20% co-payment clause means that on a ₹1,00,000 claim, you'd pay ₹20,000 yourself, and the insurer would cover the remaining ₹80,000.
Co-payment clauses are commonly attached to health policies for senior citizens, or those bought in certain cities, as a way for insurers to manage their risk and keep premiums more affordable. When comparing health insurance policies, it's worth specifically checking for co-payment clauses, since a policy with a lower premium but a mandatory co-payment can end up costing you significantly more at claim time than a slightly pricier policy without one.