If co-pay is opted in an insurance policy, the insured has to pay a fraction of the claim amount. Co-payment is shown as a percentage of the total claim amount. If co-pay is included in the Insurance Policy, the premium will be lower.
For example, if the total hospital expenditure is ₹1,00,000/- and if the co-pay is agreed at 20%, then the insured has to pay an amount of ₹20,000/- and the balance of ₹80,000/- will be paid by the Insurance Company.