What is meant by the term deductible?
A deductible is usually an amount that has to be mandatorily borne by the customer in case of a claim. Let’s take an example to better understand this. Say you have a standard motor insurance policy with a deductible of Rs. 1,000. Now, in case of a claim of Rs. 10,000 you have to pay the Rs. 1,000 (as deductible) while the insurance company will cover the remaining Rs. 9,000.