What is a Deductible?
A deductible is a fixed amount you pay before your insurance starts paying. With a Rs 1 lakh deductible, the insurer covers costs only above Rs 1 lakh. Deductibles are common on top-up and super top-up plans and on some voluntary-deductible health policies.
How a deductible works
Unlike a co-pay (a percentage of each claim), a deductible is a rupee threshold. On a top-up plan, the deductible is the amount that your base policy or your own pocket is expected to absorb first.
A super top-up applies the deductible once per year across all claims combined, while an ordinary top-up applies it per claim, which is a meaningful difference at claim time.
Example
You have a Rs 5 lakh base policy and a Rs 5 lakh super top-up with a Rs 5 lakh deductible. A Rs 8 lakh hospital bill is met Rs 5 lakh by the base policy and Rs 3 lakh by the super top-up, once the deductible is crossed.
Common mistakes
- Mixing up per-claim (top-up) and per-year (super top-up) deductibles.
- Buying a top-up with a deductible higher than your base cover, leaving a gap in the middle.
Frequently asked questions
What is the difference between a deductible and a co-pay?
A deductible is a fixed amount you pay before cover starts. A co-pay is a percentage of each approved claim you keep paying throughout.
Are top-up plan deductibles per claim or per year?
An ordinary top-up applies the deductible to each claim. A super top-up applies it once a year across all claims, which usually pays out more often.