Page 380 - Ebook health insurance IC27

The Insurance Times

Contributory :
Plan of insurance in which part of the premium is paid by the employees and part is paid
by employer.

Coinsurance :
A provision in an insurance policy requiring the insured to contribute a certain percentage
of claim. For Eg 90% will be borne by insurance company and rest by insured.

Co-payment:
A type of cost-sharing arrangement whereby insured or covered persons pay a specific,
flat amount per unit of service or time and the insurer pays the rest.

Contingency :
An unforeseen occurrence.

Coverage :
The guarantee against specific losses provided under the terms of a policy of insurance.

Critical Illness :
A health insurance plan which offers protection against specified major diseases.
The insurance company pays lump sum amount on the diagnosis of disease itself.
The insurer is not concerned with the actual expenses incurred in respect of that
disease.

Death benefit :
The amount stated in the policy to be paid upon proof of death of the insured. The sum
payable as the result of the death of policy holder.

384 Guide for Health Insurance