What Is Deductible?
A deductible is the amount you pay out of pocket on a claim before your health insurance begins paying. On a ₹10 lakh policy with a ₹50,000 deductible, you cover the first ₹50,000 of a hospital bill and the insurer pays the rest, up to the sum insured. Deductibles are most common in super top-up plans.
How Deductible Works
There are two common types:
- Aggregate (annual) deductible – applies once across all claims in a policy year; the standard model for super top-up plans.
- Per-claim deductible – applies to each individual claim separately.
A voluntary deductible is one you choose to take on in exchange for a lower premium. The higher the deductible you accept, the cheaper the cover – useful if you already hold a base plan that absorbs smaller bills.
Example
You hold a ₹5 lakh base plan and a ₹20 lakh super top-up with a ₹5 lakh deductible. A ₹12 lakh hospital bill is settled as: your base plan (or you) pays the first ₹5 lakh, and the super top-up pays the remaining ₹7 lakh.
Why Deductible Matters
Deductibles are what make high cover affordable – a super top-up with a deductible costs far less than an equivalent standalone base plan. The catch: you must be able to fund the deductible, usually via a base policy sized to match it.
Frequently Asked Questions
What is a deductible in simple terms?
It's the part of a claim you pay yourself before insurance starts paying. A ₹50,000 deductible means you cover the first ₹50,000 of a bill, and the insurer covers the rest up to your sum insured.
What is the difference between a deductible and a co-pay?
A deductible is a fixed rupee amount you pay once before cover begins; a co-pay is a percentage you pay on every claim. A deductible front-loads your share; a co-pay spreads it across all claims.
Is a higher deductible good or bad?
A higher voluntary deductible lowers your premium but increases what you pay at claim time. It works well only if you have a base plan or savings to cover the deductible amount.
Related guides:
Glossary: Full Insurance Terms Glossary
Disclaimer: Educational content reflecting 2026 rules. Always read your policy wording. NYVO is an IRDAI-registered corporate agent.
