The top-up policy will start paying claim, when the insured hit the threshold. Insured having a Top Up of 5 Lakhs with Threshold 5 Lakhs, then in this case once the 5 lakh policy cover is exhausted then the top-up policy start paying. Second point of your question, if your top-up policy is family floater then your assumption is correct.

Threshold calculation under the Policy include:
  1. The admission in the Hospital should have happened during the policy period.
  2. The Insured should have been admitted as an inpatient (outpatient treatments are not to be considered).
  3. The Hospitalisation should be for an Injury or Illness.
  4. Pre–Hospitalisation and Post–Hospitalisation expenses will not be considered.


I would ask you to go through the example provided in the New India website in CLAIMS ADJUDICATION Section.