New Delhi, Oct. 8 -- The General Insurance Council is reportedly considering a proposal to introduce a mandatory 10% co-payment in retail health insurance policies, with the policyholder's contribution potentially capped at Rs.5 lakh per claim.

The proposal aims to address rising healthcare costs and potential distortions in hospital billing. However, if implemented, it could increase the out-of-pocket burden for health insurance policyholders, particularly those facing large hospitalisation expenses.

The proposed co-pay is reportedly being considered for retail indemnity health insurance products, irrespective of whether a claim is settled through cashless treatment or reimbursement.

A co-payment is a cost-sharing arrangement in which...