Co-insurance can describe an insured person’s share of a cost, a property underinsurance condition, or an arrangement where several insurers share a risk. The surrounding policy or financial report determines the meaning.
The distinction that matters
A percentage in one policy is not a universal Australian claims rule. Do not confuse an underinsurance calculation with a health-plan cost share or a split between insurers.
What to check
- The clause containing the term.
- The percentage and calculation basis.
- Any valuation or sum-insured obligation.
- Other limits and excesses applying to the claim.
Example to discuss
If a document says co-insurance applies, ask the provider to show a worked calculation using that exact clause and the values relevant to the proposed policy.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.