What is the meaning of “Deductible”?
Deductible or excess an insured will pay in an insurance claim before the insurance cover starts paying the insured. This is the out of the pocket expense of a policyholder. Under Motor Insurance policy, there is a normal standard/compulsory excess for most vehicles ranging from Rs 50 for two-wheelers to Rs 500 for Private Cars and Commercial Vehicles which increases depending upon the cubic capacity/carrying capacity of the vehicle.
The cubic capacity/carrying capacity of the vehicle increase this cost other than factors like the age of the vehicle or if there is a high frequency of claims made by the insured.
- What is the amount for which I need to insure my commercial vehicle? How is IDV connected to the amount needed to insure vehicle?
- What kind of risks is covered by IFFCO Tokio third party policy?
- Consequences if I forget to renew my commercial auto insurance on time
- Can I renew my commercial vehicle insurance with IFFCO Tokio?
- What is a No Claim Bonus?