When it comes to the concepts of "deductible" and "non-deductible", we need to clarify their respective definitions and specific applications in the insurance industry. From the perspective of law and insurance practice, I will analyze the differences between the two in depth.
Deductible means that in some specific circumstances, the insurance company is not liable for compensation, and this part of the loss needs to be borne by the insured. Deductibles are often included as a clause in an insurance contract to reduce insurance costs, encourage the insured to act more cautiously, and reduce the administrative costs associated with small claims.
In insurance contracts, deductible clauses appear in various forms, such as "absolute deductible", "relative deductible", etc. Absolute deductible means that after the occurrence of the insured event, the insured needs to bear a certain amount of losses, and the insurance company will pay the part that exceeds this amount. The relative deductible is a percentage linked to the sum insured or the amount of loss, and only when the loss exceeds this percentage, the insurance company will start paying.
No compensation, simply put, means that the insurance company is not liable for compensation at all in some cases. These situations are usually clearly set out in the insurance contract as exclusions or exclusions. There are various circumstances in which a non-payment can be made, which may include the insured's intentional acts, illegal acts, war, nuclear risks, etc.
Different from deductible, non-compensation is a situation where the insurance company completely refuses to pay, regardless of the size of the loss, as long as the non-compensation clause in the insurance contract is met, the insurance company has the right to refuse to pay.
1.The liability for compensation is different: Deductible means that under certain conditions, the insurance company reduces the amount of compensation; If you do not pay compensation, the insurance company will not be liable for compensation at all.
2.The nature of the terms is different: A deductible clause is usually a regular clause in an insurance contract to balance the interests of both parties; The no-claim clause is more about the insurance company's risk aversion and exclusions.
3.The legal consequences are different: If the insured event meets the deductible clause, the insured may still receive partial compensation; However, if the exclusion clause is met, the insured person will not be able to receive any benefits from the insurance company.
To sum up, although both deductibles and non-deductibles involve situations where the insurance company does not bear full liability, they are distinctly different in concept, application and legal consequences. As a consumer, when purchasing insurance, you should read the insurance contract carefully and understand the specific terms of the deductible and non-compensation to avoid unnecessary disputes when you need to make a claim.