New Delhi, Oct. 6 -- Non-life insurers are considering a 10% co-payment on retail health insurance claims from 1 January 2027, with the policyholder's contribution proposed to be capped at Rs.5 lakh per claim. The proposal could lower annual premiums, but policyholders would have to arrange part of the hospitalisation cost themselves.

Retail health insurance means a health insurance policy that an individual or family buys directly from an insurer for themselves, rather than getting coverage through an employer or another group.

"The proposal, being considered by the General Insurance Council, would pair the change with common hospital empanelment and a formal mechanism for settling disputes between insurers and hospitals," according to...