The General Insurance Council has submitted a formal proposal to the Insurance Regulatory and Development Authority of India (IRDAI) seeking to enforce a mandatory 10% co-pay clause across all health insurance policies, targeted for implementation starting January 1, 2027. Under this proposed rule, policyholders would be required to pay 10% of total hospital bill expenses out of pocket, capped initially at ₹5 lakh, regardless of policy tier, claim reason, or tenure of premium payments. The industry association argues that compulsory financial participation will incentivize patients to scrutinize inflated hospital bills and counter overcharging practices by healthcare providers. However, the proposal has faced severe backlash from consumer advocates and policyholders, who criticize the measure as a predatory shift of audit responsibilities onto vulnerable patients, threatening financial security during medical emergencies and significantly increasing the out-of-pocket healthcare burden nationwide.