What is ‘vol­un­tary ex­cess’?

Consumer Voice - - Bfsi -

In ad­di­tion to the com­pul­sory ex­cess, you can opt for an ad­di­tional vol­un­tary ex­cess to help re­duce your pre­mium. A vol­un­tary ex­cess will only be added to ac­ci­den­tal dam­age claims and only those claims where you are deemed at fault. For ex­am­ple: If you pur­chase a car in­sur­ance pol­icy with a Rs 150 com­pul­sory ex­cess and have se­lected an ad­di­tional Rs 250 vol­un­tary ex­cess, in the event of claim for ac­ci­dent dam­age that is deemed to be your fault, you will pay a Rs 400 to­tal ex­cess. You can set the vol­un­tary ex­cess as low as zero to re­duce how much you would have to pay out in the event of a claim, or you can in­crease it, which may re­duce your pre­mium. You would pay the amount you have cho­sen in the event of any claim. to­tal dis­abil­ity. Hos­pi­tal­iza­tion ex­penses and tem­po­rary dis­abil­ity due to ac­ci­dents could also be cov­ered.

Ex­clu­sions

Th­ese are the usual ex­clu­sions but the list is not ex­haus­tive: wear and tear of the car, de­pre­ci­a­tion, me­chan­i­cal or elec­tri­cal break­down of the car, driv­ing with­out valid driv­ing li­cense, con­se­quen­tial loss, vol­un­tary ex­cess (if opted for), loss due to drunken driv­ing, any con­trac­tual li­a­bil­ity, de­lib­er­ate ac­ci­den­tal loss, dam­ages due to nu­clear weapons ma­te­rial or war, etc.

Add-on In­sur­ance Cov­ers/Rider Benefits

It is a gen­eral feel­ing among us that buy­ing a com­pre­hen­sive pack­age in­sur­ance pol­icy will free us of all the wor­ries once and for all. This is far from the truth, though. There are many ex­clu­sions even in a com­pre­hen­sive pol­icy on which the in­sur­ers don’t pro­vide many cov­er­ages.

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