hi,
I have a doubt about franchise or excess
What is the diff b/w franchise and excess?
can any explain with this example?
if insurance document showing
franchise of 5% loss and excess of 5%
if
1)goods loss is 4%
2)goods loss is 60%
what is the liability of insurer in franchise and excess?
regards
ram
franchise or excess(deductible)
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bysani_rams
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gt_sen
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Franchise and Excess deductible..
If 5% Franchise means, if the loss is less than or equal to 5%, it will be beared by the insured party. If the loss is more than 5%, the full loss will be beared by the inusurer.
For example, if the insured value is USD 100 and the loss is USD 4, insured party has to bear the full loss. (ie. Loss is less than 5%) - If the loss is USD 8, full loss will be beared by the insurer. (here, loss is more than 5%)
If 5% Excess Deductible means, any loss upto 5% on insured value will be beared by the insuread party and the balance 95% will be beared by the insurer.
In above example, if the loss is USD 5, full loss will be beared by the insured party. If the loss is USD 8, USD 5 will be beared by the insured and USD 3 will be beared by the insurer.
I hope it is clear now. If need more explanations, please raise.
Regards,
Senthil...
For example, if the insured value is USD 100 and the loss is USD 4, insured party has to bear the full loss. (ie. Loss is less than 5%) - If the loss is USD 8, full loss will be beared by the insurer. (here, loss is more than 5%)
If 5% Excess Deductible means, any loss upto 5% on insured value will be beared by the insuread party and the balance 95% will be beared by the insurer.
In above example, if the loss is USD 5, full loss will be beared by the insured party. If the loss is USD 8, USD 5 will be beared by the insured and USD 3 will be beared by the insurer.
I hope it is clear now. If need more explanations, please raise.
Regards,
Senthil...