Why co payment is required ?

Genrally,Co payment is not mandatory in every health insurance policy,it is totally depends on the health insurance product, Retail health Insurance: In retail health insurance plan some time co payment will be madatory as per the proposal or for some pre existing diseases where insurance compnay covers that pre existing diseases with some restricted amount as an co payment amount which means if insured person will take claim even after waiting period for the pre existing disease insured person has to bear co payment amount for the pre existing disease for which co payment is applied. Group Health Insurance: Co payment is not mandatory in group health insurance plan,in group health insurance co payment required for reducing the premium amount and the claim ratio in the current policy year so that the Group can avoid the high premium volume for the next year renewal time.Because if a group decides to apply the co payment in the policy in that insurance risk will reduce which means where a insurance company has provide the risk amount of rupees 3lac to each insured person for every claim there insurance will save 10% in every claim as result payable amount will be reduce 10% or whatever limit restricted in the the policy as Co payment.