What are the two types of deductibles in commercial vehicle insurance?
The following are the two types of deductibles in commercial vehicle insurance:
Compulsory deductibles:
This is a fixed amount decided based on two factors:
- Vehicle type
- Cubic/carrying capacity of the vehicle.
The Insurance Regulatory and Development Authority of India (IRDAI) have set higher deductibles for vehicles that are very old.
Voluntary deductibles:
These are optional and selecting one can increase the total deductible amount you have to pay to the insurer. Opting for one of these can help to reduce the policy premium amount to a large extent. It is advisable to go for a voluntary deductible if the policyholder doesn’t make any claims. This way you will have to pay a little higher deductible but the premium will be very low.
