What is a deductibe?

What is a deductible?

Let's say you just got a Comprehensive Policy and then you see an item that says Deductible: P5,000. What is that?! Well, here's a brief explanation of what it is:

This is the amount that the company is not liable for. Let's say the deductible is P5,000 and you file a claim that totals only P2,000, the company shall not pay the P2,000. Anything below P5,000 is your liability, and whatever is in excess of P5,000 is the company's liability.

The following are the standard deductibles under the Motor Tariff: Private Car 0.5% of Sum Insured under Sec. III – Loss & damage, minimum of PhP 2,000. Commercial Vehicles 1.0% of sum insured under Sec. II – Loss and damage, minimum of PhP 3,000. Land Transportation Operators 1.25% of sum insured under Sec. II – Loss and damage, minimum of PhP 4,000. Motorcycles 1.0% of sum insured under Sec. II – Loss and damage, minimum of PhP 500.




PS. If you have a question please feel free to ask me: kmangilit@yahoo.com =)