Voluntary Deductibles and Compulsory Excesses

A deductible is the portion of your car insurance claim that is not covered under your policy.

A Voluntary Deductible is an undertaking by the vehicle owner to bear a certain amount of loss in each insurance claim. For instance, you had an accident and your claim amount is Rs. 10000. You choose to bear the first Rs. 5000 of your claim. This becomes your voluntary deductible. The claim will now be worth only Rs. 5000. If you opt for a voluntary deductible, the insurer offers you a discount on your vehicle premium.

Click here to view the Voluntary Deductibles for different types of vehicles.

A Compulsory Excess, on the other hand, is added to a premium by the insurer. This excess is in addition to Malus. Compulsory Excesses are added to cover for a history of bad claims experience for a particular vehicle. When a compulsory excess is levied, no premium discounts are allowed.