New Delhi, Aug. 16 -- Health insurance claim settlement letters often contain deductions that can leave policyholders confused. Understanding the terminology used by insurers and questioning unclear deductions can help consumers understand how their claim was evaluated and whether the amount deducted is justified.

Reasonable and customary (R&C) charges mean an insurer will pay only what it considers a standard or reasonable amount for a particular treatment in a specific location. Any amount charged above this benchmark may be excluded from the claim. Such deductions are more frequently seen in reimbursement claims and at non-network hospitals, where treatment costs have not been pre-negotiated with the insurer. However, R&C deductions c...