Insurance sans compulsory deductibles
NEW DELHI: With automobile insurance likely to see a dip due to the COVID-19 pandemic, insurance firms have begun offering customers extra benefits in an effort to lure them in. For instance, there is now a waiver of the ‘Compulsory Deductible’ component in insurance policies being offered by Liberty General Insurance through its ‘Liberty Assure’ plan.
The product is an outcome of insurance regulator IRDAI’s regulatory sandbox. Under the offering, the customer will not have to bear the cost of the ‘Compulsory Deductible’ component charged on every claim. The new feature, offered at no extra premium, will also give customers even more control over their insurance costs, the company said.
“Like in all Motor insurance policies, a compulsory deductible is the amount that the insured must pay. If the compulsory deductible for a private car is Rs 2,000 and the customer incurs a total assessed claim expense of Rs 2,500, then the insurance company will pay Rs 500... Now, with Liberty Assure, this Rs 2,000 will also be paid by the insurance company,” Liberty General said.