co-insurance
Also called: ko-asuransi
The sharing of risk among several insurance companies for a single insured object.
What it means
Co-insurance is the sharing of risk between insurer and insured for part of the claim cost. The insured bears a certain portion, for example a percentage of the cost, and the insurer pays the rest. This scheme is common in corporate health insurance and certain products. In Indonesia this term is also called ko-asuransi.
Why it matters for families
Co-insurance means claim costs are never fully covered, so families must prepare their own funds. If it is not understood, people may assume all hospital costs are reimbursed. As a result, the bill they must pay themselves can come as a shock when an event occurs. Understand the percentage before choosing a policy.
Example
Suppose a policy sets co-insurance at 20 percent for inpatient costs. If the hospital bill is Rp10 million, the insurer pays Rp8 million and the family bears Rp2 million. These figures are an illustrative assumption, not official terms.
Common misunderstanding
Some people think co-insurance is the same as a premium discount. The correction is that co-insurance is the portion of claim costs that remains the insured's burden.