1. That part of medical expenses which a policyholder need to pay when he receives medical services called co-payment. The remaining amount is paid by the insurance company.

2. Co-pay is the fixed amount or percentage which is predetermined for various treatments and services.

3. It has to be paid every time the policyholder receives a health care service.

4. The co-pay clause in the policy reduces the premium amount for the policyholder.

5. Usually applies to senior citizen in health insurance policies in India.

(Content on this page is courtesy of Center for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Aarti Bhargava and Labh Mehta.)