Deductible
What it means, and what it does to a claim.
An amount you cover yourself before the policy starts paying at all. Below it, the insurer pays nothing; above it, they pay the rest.
Why it matters
This is the mechanism behind super top-up plans: you accept a high deductible — say ₹5 lakh — in exchange for a much cheaper premium on a large cover, and you rely on a base policy or your savings to bridge the gap underneath. It only works if that bridge actually exists. A deductible with nothing under it is just an uninsured first ₹5 lakh.
The legal definition
Deductible means a cost-sharing requirement under a health insurance policy that provides that the insurer will not be liable for a specified rupee amount in case of indemnity policies and for a specified number of days / hours in case of hospital cash policies which will apply before any benefits are payable by the insurer. A deductible does not reduce the Sum Insured. The deductible is separate from any Aggregate Deductible that may be in-force and applicable under the Policy, as specified in the Policy Schedule.
Quoted verbatim from an IRDAI-filed policy wording. Definitions are standardised across insurers, but the limits attached to them are not — always read your own policy schedule.
Related terms
- Base Sum Insured — The core annual limit on your policy, before any bonus, restoration or top-up is added on.
- Co-Payment — A share of every approved claim that you pay yourself, as a fixed percentage.
- Sum Insured — The maximum the insurer will pay in a policy year.
Disclaimer: Figures shown here are compiled from IRDAI annual reports and public grievance disclosures, and from insurer public disclosures and policy wordings. Claim settlement ratios and complaint volumes are three-year averages for FY 2024–26. Premiums are indicative illustrations for the stated profile, not quotes — your actual premium depends on your age, health, city, habits and underwriting. Scores are Myinsurancebro's own assessment. Always read the official policy document and speak to an advisor before buying. Myinsurancebro is an IRDAI-licensed insurance advisor — we do not manufacture or underwrite any insurance product.