10/07/2019
Motor Insurance 101:What is the meaning of minimum excess?
Excess imposition on claims helps to ensure a shared burden of responsibility thus reducing cases of claims resulting from the insured carelessness/negligence.Minimum excess is the minimum amount for the insured to seek insurance intervention in the event of a claim. For example:
If the insured vehicle is valued at Ksh.1,000,000/= with 5% excess.
The minimum excess is Ksh. 50,000/= ie (5%x1,000,000).
In this case, the insured will not need to seek indemnity from the insurance company unless there are third parties involved. However, the insured can seek indemnity for any claim above the minimum excess where excess protector will apply (if purchased) for full indemnity.
Check this page tomorrow to understand the meaning of maximum excess.
For this and more insurance information, contact our numbers 0735444622/0777444622.