Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Insurance excess fees

Options
  • 17-09-2007 1:43pm
    #1
    Slice
    Closed Accounts Posts: 1,133 ✭✭✭


    Does anyone know if it is a legal requirement for an insurer to apply an excess fee on insurance claims or is this solely to discourage people from making low-value claims?


Comments

  • Options
    #2
    patpark121
    Registered Users Posts: 161 ✭✭patpark121


    All insurers levy an excess on a policy. Depending how much of an excess you were prepared to pay when signing up for the policy determines in a small way what your premium will be. When making a claim the insurer will always levy the excess before making preliminary payment offer / final settlement. Its something of a case of my liability your liability on your policy.
    Unless you were very fortunate to have an insurer considerate enough not to include an excess...
    Don't know if it's a legal requirement, but it's certainly part of the code of practice from all of them i've dealt with.
    Certainly if it's a small claim thats close to the excess limit then it's not worth claiming on a policy for.


  • Options
    #3
    MollyCoddle
    Closed Accounts Posts: 33 ✭MollyCoddle


    It isn't a legal requirement.

    However, as a key principle of insurance is that the insured must not profit from insurance AND make an effort to mitigate losses, an excess discourages people from claiming for any and every little thing.


  • Options
    #4
    Slice
    Closed Accounts Posts: 1,133 ✭✭✭Slice


    My health insurance levies a €1 excess fee on claims for GP fees - I would be inclined to believe that such a low fee arises from a legal or financial regulatory necessity for the excess fee over any motive to discourage people from claiming (although this isn't always the case obviously). If an insurance provider was to apply an excess fee of one euro then why not just dispense with it altogether?


Advertisement