Liberty General Insurance introduces ‘Liberty Assure’: Offers waiver of compulsory deductible at no extra premium

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Published: July 6, 2020 1:32 PM

A deductible is a fixed amount deducted at the time of claims and it is common across all insurance companies.

 Compulsory Deductible, Voluntary Deductible, Liberty General Insurance, motor insurance policy, car insuranceThere are two kinds of ‘ Deductible’ – Compulsory Deductible and Voluntary Deductible.

Opting for a motor insurance claim, after one’s vehicle gets damaged, is something many car and bike owners often get confused about. At times, the repair cost could be high and there is a set-off as the no-claim bonus gets utilized during the claim process. And, then there is something called ‘Deductible’ in a motor insurance policy. As a policyholder, one needs to pay a part of the claim amount while the rest is paid by the insurance company for repairs.

Typically, there are two kinds of ‘ Deductible’ – Compulsory Deductible and Voluntary Deductible. The former as the name suggests is something which the owner of the vehicle has to bear. Not any longer. Liberty General Insurance Ltd. (LGI), has launched an innovative service ‘Liberty Assure’ as a part of its existing Private Car Package Policy, under the Regulatory Sandbox approval received from IRDAI. The policyholder will not have to bear the cost of ‘Compulsory Deductible’ for every claim at no extra premium avail this service at the time of raising a claim. The new feature is expected to give policyholder control over their insurance costs, thus enabling them to save more.

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 2000 and the customer incurs a total assessed claim expense of Rs 2500, then the customer’s insurance company will pay Rs 500, after deducting the compulsory deductible of Rs 2000. Now, with Liberty Assure, this Rs 2000 will also be paid by the Insurance company.

What is Compulsory Deductible?

It is a fixed amount deducted at the time of claims and it is common across all insurance companies (as prescribed by India Motor Tariff). It is determined based on the engine capacity of an individual’s private car. The compulsory deductible per claim in case of private cars up to 1,500 cc engine is Rs 1000; for cars above 1,500 cc it is Rs 2000.

Additional benefits under this feature include the Service Warranty, covering any defects arising from the repair of accidental vehicle. The Company’s preferred provider network (PPN) workshop will make such loss good by providing the required repair or replacement of the defect at no additional cost. The policyholder can visit the same workshop with the service warranty certificate for any further repair/replacement of the defect.

Further, this feature will be available to the customers across eight locations- Ahmedabad, Jaipur, Kolkata, Bangalore, Hyderabad, Mumbai, Chandigarh, Delhi-NCR. The vehicles repaired at Liberty’s PPN workshops will also entitle the customers to avail free value-added services such as pick-up & drop, exterior car wash, engine tune-up and A/C Check Up among others.

One may even go for Voluntary Deductible but should do after carefully evaluating the option. Opting for it will keep the premium lower but at the time of claim, the out-of-pocket expense could be high.

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