Extensive coverage facility to be available for big medical expenses, co-insurance can be helpfu

New Delhi| In view of the continuously increasing inflation and huge expenditure on treatment, health insurance has become very important for the people. Its importance has increased further after the Corona period. It not only helps in challenging situations like medical emergencies but also provides financial protection from hospital expenses. Want comprehensive coverage and financial security for the huge expenses incurred on treatment, co-insurance can prove helpful. This is a concept in health insurance, in which the cost of treatment expenses is shared among many insurance companies.

Is different from co-payment
Co-insurance is different from co-payment. In co-payment, the policyholder has to pay a certain part of the medical bill (fees), while in co-insurance, the burden of the policyholder’s treatment expenses is divided between two or more insurance companies. This arrangement distributes financial risk and provides comprehensive coverage for high-value insurance or large medical claims.

Risk determination is done in advance between companies

Under the co-insurance concept, every insurance company bears a part of the risk. This means that they will be liable to repay a fixed portion of any claim made under the policy. The percentage of risk that will be charged from each insurance company is determined in advance.
It is under the pre-determination system that insurance companies pay the treatment expenses as per their respective stake.