Introduction
Motor insurance, an essential shield for your vehicle, comes with many terms and conditions. One such aspect that often leaves policyholders with questions is the concept of compulsory deductibles. If you are wondering what is compulsory deductible in car insurance, this blog will answer your query. While it may seem daunting, understanding compulsory deductibles in motor insurance is crucial to making informed decisions about your coverage. In this blog, we will break down the essentials of compulsory deductibles, helping you navigate the intricacies of motor insurance.
Meaning of Compulsory Deductible in Car Insurance
As the name suggests, a compulsory deductible is a mandatory component of your motor insurance policy. Under this clause, the insured individual must pay a predetermined amount towards any claim they make. The Insurance Regulatory and Development Authority of India (IRDAI) has set specific limits for compulsory deductibles in motor insurance. As per these regulations, the compulsory deductible is INR 1000 if the car's cubic capacity does not exceed 1500 and INR 2000 if the car has a cubic capacity greater than 1500.
This concept aims to create a sense of responsibility among policyholders. By having a mandatory deductible, individuals are discouraged from filing small or frivolous claims, which can lead to increased administrative costs for insurance providers. It helps control costs and encourages policyholders to focus on cautious driving practices.
While the idea of compulsory deductible may seem daunting, it has advantages. It often results in reduced premiums, as insurance companies appreciate the policyholders' commitment to share a portion of the claim.
Conclusion
Now you have learned what is compulsory deductible in car insurance. It is a fundamental concept in car insurance, and understanding it is crucial for all policyholders. While it may require policyholders to contribute to their claims, it ultimately benefits the entire insurance ecosystem. So, the next time you review your motor insurance policy, don't be daunted by the term 'compulsory deductible'; instead, consider it contributing towards responsible and sustainable motor insurance.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.