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Raising a claims excess

Last updated on 
September 20, 2022
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In the event of a claim following an incident, it is important to raise the claims excess and charge the customer provided any of the following criteria are met:

  • If the claim value is likely to exceed the excess amount
  • If the claim involves another third party
  • Where the claim has involved a breach of agreement by the customer

What is a claims excess?

Most vehicle insurance products include an excess which is the maximum out-of-pocket cost in the event of a damage claim.

In the case of a subscription business, the excess amount should be paid by the customer however it's important to understand that the liability ultimately rests with the vehicle owner being the subscription provider, so swift action and accountability is important to ensure the claims excess is paid by the customer.

The excess then remains payable until such time that the at-fault party can be determined and their relevant details have been provided.

It should be a requirement that no indemnity is provided to the subscriber until the excess is paid, or they are deemed to not be at fault by the insurer.

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