This is a certain amount that will not be covered in the event of an insured event.
The amount of the deductible can be expressed in cash (UZS) or as a percentage (%).
Notes: the higher the deductible, the cheaper the insurance, the lower the deductible, the more expensive the insurance.
There are two types of franchises:
1. Conditional franchise - if the loss does not exceed the agreed amount, the company does not pay. If the amount of damage is greater than the deductible, then the insurer covers the entire loss, including the deductible.
Example: let's say you received damage in the amount of 500,000 UZS, and the amount of the conditional deductible is 700,000 UZS. In this case, you will not receive any payment, since the damage caused to you did not exceed the amount of the conditional deductible. But if, for example, you have suffered losses in the amount of 1,500,000 UZS (above the amount of the conditional deductible), then the insurance company will reimburse you for the entire amount of damage – 1,500,000 UZS.
2. Unconditional deductible - an amount that is deducted from the amount of the payment in any case.
Example: If damage is received in the amount of the same 1,500,000 UZS, and the unconditional deductible is the same 700,000 UZS, then the payment will be equal to 800,000 UZS (1,500,000 - 700,000 = 800,000).
If the amount of losses is less than the amount of the unconditional deductible, then, as in the situation with the conditional deductible, the losses are not reimbursed at all.