What is voluntary deductible option in Insurance ?
Voluntary deductible is a part of any claim which is paid by you from your pocket not by insurance company. voluntary deductible is also known as voluntary excess. Voluntary deductible is a standard(fixed amount at time of insurance ) amount paid by insured at time of claim. It is a fixed absolute amount.
Suppose you opt for Rs. 3000/- of voluntary deductible at the time of insurance. After few day you claim for Rs.40,000/-. If your insurance accept the clamain then you will get Rs. 37,000/- , i.e, Rs.40000 – Rs.3000/- . As you have signed for Rs.3000/- voluntary deductible option.
There is inverse relation between premium and voluntary deductible amount. If voluntary deductible is high then your premium will be low.
Voluntary Deductible option applies in almost every type of General insurance like Motor insurance, Home insurance, health Insurance, travel insurance etc.
In case of Motor Insurance your voluntary deductible will vary depending on the cubic capacity (CC) of your vehicle.