Franchise insurance: to whom it is profitable?

Deductible - a part of the damage is considered as a percentage of the total sum insured which will not be paid to the policyholder. This means that when insurance claims this value (franchise) will be deducted from the total amount of damages. Today, the franchise in insurance is divided into two main types: conditional and unconditional franchise. notional deductible when using conventional franchise means that the insurer will not pay damages for insurance if the total amount of damages is less than the deductible. In the case of excess of loss deductible amount of damages paid in full. For example, if the total amount of insurance is 100 000 rubles, and a conditional franchise - 10 000 rubles, the damage of less than 10 000 rubles will be paid. If the damage will amount to 10,001 rubles, it will be paid in full. deductible This type of deductible in insurance means that part of the loss, set in the agreement is non-refundable by the insurer. For example, the total amount of insurance - 100 000, set deductible - 10 000. If the amount of the loss will amount to 9,000 rubles, it will not be recoverable, if the loss amounted to 11 000 rubles, the compensation will be subject to a 000. The use of deductibles in insurance can substantially reduce insurance costs, but the insurer must understand that the franchise, primarily aimed at reducing payments to insurance companies in cases of minor damages, which the statistics - the majority.