The premium payable by the client, is determined according to the risk the Insurer will have to carry on behalf of that client.
In order to lower the premium the insurer needs to lower the risk they carry. This is done by letting the client carry a small portion of the risk themselves. This small portion is generally known as the “EXCESS”
The excess amount, which will be indicated on every policy schedule, represents the portion of risk that the client carries and is responsible for.
Taking off the excess completely and instructing the insurer to carry the total risk is possible in some cases but this will be accompanied by an increase in premium.
As the ‘excess’ represent the portion of risk the client carries, it will be payable in the event of a claim whether the loss was caused by the client or not. In the case of vehicle damages caused by a third party, the insurer tries to recover the excess for their clients up to the point where it might become to costly to do so.
The successful recovery of the excess helps lower the risk carried by the client and also by the insurer. In some cases it is impossible to achieve.
And ALWAYS notify us / the insurer of the claim immediately.