Deductible (insurance franchise)
A deductible (franchise) is the portion of a loss that, under the insurance contract, the insured covers on their own. It can be conditional (payout only when a threshold is exceeded) or unconditional (always subtracted from the indemnity).
A deductible lowers the cost of insurance, but for minor losses there will be no payout or it will be reduced. The size of the deductible is chosen according to the value and risks of the cargo.
We will help you choose insurance terms suited to your cargo and route.
Related terms
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