This is what we mean by Excess and Excess Buy Back
Have you ever made an insurance claim and you weren’t given the amount you expected? One of the very common reasons for this kind of shortage is what is known as Excess. It is a term every policyholder should understand, as well as Excess Buy Back, to avoid surprises when they are about to make a claim.
Excess is a percentage of your claim that you are expected to pay. It is usually a small amount, compared to what you will receive from the insurer. It is simply your responsibility charge on the damage of your asset.
Just as it is a compulsory charge placed on policies, there is a way to avoid being charged with excess when you make a claim. To avoid Excess charges on your claim, you can do the Excess Buy Back.
Excess Buy Back is the money you pay to cover up for the excess charge at the inception of a policy. For example, if you were to pay N50, 000 for a policy and the excess on that policy is N5000, the Excess Buy Back will be N55, 000. This way, you get your complete money when making a claim.
Are you wondering about the reason for the Excess? The excess charge is no way to get extra money from customers, rather, it is an insurance regulation practiced by all insurance companies to checkmate intentional or careless exposure to risks.
We all have a role to play in protecting ourselves from dangerous situations. Just as we protect you against life threatening situations, you should also ensure that you minimize your exposure to such situations.
Before you get your next policy, ask your agent about the excess on that policy and what the excess buy back will involve. Make better decisions by staying informed.
Call 012800700 for more information on excess and how it applies to your policy.