The terms conditional and unconditional deductible are used in insurance. Deductible - an optional condition in the insurance contract, providing for the release of the insurer from compensation for losses in terms of the cost of the deductible.
Conditional and unconditional deductibles in insurance are a relatively new phenomenon for Russian insurance practice. Most often, their use is justified by the goals of preserving the interests of the client in insurance. Until 2014, the franchise was not enshrined in Russian law.
The advantage of a franchise is that the insurer provides benefits for the payment of insurance premiums and reduces tariff rates.
Conditional deductible
In case of a conditional deductible, part of the losses are not reimbursed by the insurance company if their amount is less than the established deductible. When the amount of damage is higher than the deductible, it is compensated at the rate of 100%. Thus, the insurer strives to dissociate itself from minor, minor damage.
The insurance contract may provide for other types of deductible - for example, temporary, dynamic. But in practice, they are extremely rare.
For example, the insured amount is 100 thousand rubles, the size of the established deductible is 15 thousand rubles. If the loss from the insured event amounted to 10 thousand rubles, then the insurer does not pay compensation, because the loss is less than the value of the notional deductible. If the loss has reached 50 thousand rubles. - it is subject to 100% compensation.
The most common application for a contingent deductible is personal insurance. In this case, the contract stipulates the number of days of illness for which compensation is provided.
It is almost impossible to find a franchise in auto insurance today, although it has great advantages for the policyholder and the insurer. This is due to frequent attempts at fraud, when the insured sought to cause more damage to the car in order to increase the amount of damage.
Unconditional deductible
In the case of an unconditional deductible, the insurer's liability is determined by taking into account the amount of the deductible, which is not refundable. The cost of the deductible is deducted from the amount of the insurance indemnity.
For example, the insured amount is 100 thousand rubles, the size of the unconditional deductible is 15 thousand rubles. If the loss in the event of an insured event amounted to 10 thousand rubles, then the insurance company does not pay compensation, because the loss is less than the unconditional deductible. If the loss has reached 50 thousand rubles, then the insurance company pays compensation in the amount of the difference between the loss and the franchise - 50 thousand rubles. minus 15 thousand rubles = 35 thousand rubles
The most widespread unconditional deductible was received in car and property insurance.
Sometimes the unconditional deductible is determined not in absolute (ruble) terms, but as a percentage. In this case, for any amount of loss, the policyholder pays only a certain part.
For example, the insured amount is 100 thousand rubles, the size of the unconditional deductible is 30% of the amount of the loss. If the loss upon the occurrence of an insured event amounted to 10 thousand rubles, then the insurance company pays compensation in the amount of 10 thousand rubles - (10 * 0, 30) = 7 thousand rubles. If the loss reaches 50 thousand rubles, then the insurance company pays compensation in the amount of 50 thousand rubles - (50 * 0, 30) = 35 thousand rubles.
An unconditional interest rate deductible is rarely used. In Western countries, it is used in health insurance to reduce the insurer's medical research costs.
