Understand Deductible before Buying Insurance

Understand Deductible before buying Deductible

You may have heard the term Deductible in many insurance policies. Let us understand that what is Deductible?

The term ‘deductible’ applies to that portion of a claim that will not be paid by the insurance company.

Say for Example, if your car insurance has Rs.10,000 as deductible amount and your car met with an accident and the total charge of the claim is Rs.40,000 than your insurance company will pay just Rs.30,000 and not the entire 40,000.

A Deductible is the amount which is not going to pay you by the insurance company.

And this is the reason you should always see this clause before buying any insurance policy weather it’s a health insurance or its a general insurance.

In many insurance policies, ‘Deductible’ term is applied. The Deductible amount won’t be paid by that insurance company in case of loss/damage.