What is an excess?
Category : FAQ
An excess is the first amount which the policy holder contributes/pays in the event of a claim/loss. It helps to reduce the loss ratio on your portfolio. It also prevents minor claims from being lodged which would have a negative impact on your loss ratio and premium. The excess also reminds you to be careful and vigilant at all times, because in a claim you will be liable to pay a small portion, “excess”, towards the claim.
It is also very important to make sure you know and understand your excess structures as there could be additional excess applicable in a claim, e.g. the driver at the time of loss was not the regular driver noted on the policy etc.
An attempt will be made to recover the excess, but this is not guaranteed. This recovery can take a very long time to accomplish