Why Capping is required ?

Capping is not mandatory in the health insurance policy,cappings vary insurance to insurance conditions some cappings will be applicable as per standard health insurance guideline and some cappings will be decided at the time of buy a health insurance policy,but there are a huge differnce between Retail Health insurance capping and Group health insurance capping,Retail Health Insurance Cappings: In retail helath insurance cappings will be applicable as per standard guideline of the insurance policy and it can not be changed by paying extra premium for the health insurance. Group Health Insurance Capping : In Group health insurance there are flexibilty to take cappings on the policy in group health plan cappings can be avoid,changes,higher or lesser in amount,in this policy holder will decide the capping amount in the policy to pay the lesser premium amount for the health insurance,it is required to reduce the premium amount or mantain the claim ratio in the policy so that insured can avoid the higher premium volume for the next year renewal of the policy.