What impact does a deductible have while settling a claim?
» If you have no
deductible, the company will pay 100% on a covered loss.
» To understand how a deductible works,
consider the following: If the deductible on your motor insurance is Rs. 1000 it
means you agree to pay this amount first, and your insurance company will pay
for damages exceeding this deductible.
» By increasing your deductible from Rs.
1000 to Rs. 2500 or even Rs. 3500 this decreases the insurance company’s risk.
This could mean a savings in your premium.
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