Conditional and unconditional franchise in the insurance - a relatively new phenomenon for the Russian practice of insurance. Most often, their use is justified by purposes of preserving the interests of the client in insurance. Until 2014, the franchise was not enshrined in Russian legislation.
The advantage of a franchise is that the insurer provides benefits for the payment of insurance premiums, and reduces the tariff rate.


Conditional franchise



In the case of conditional deductible portion of losses not indemnified by the insurance company if their size is less than the established franchise. When the amount of damage above the deductible, it kompensiruet 100%. Thus, the insurer seek to dissociate themselves from small, minor injuries.
The insurance contract may provide for additional types of franchise - for example, temporary, dynamic. But in practice they are extremely rare.


For example, the insured amount is 100 thousand rubles, the amount of the franchise - 15 thousand rubles. If the loss from the insured event amounted to 10 thousand rubles, the insurer shall not pay indemnity, since the loss is less than the cost of the conditional franchise. If the loss has reached 50 thousand. - it shall be 100% of compensation.

The most common use of the conditional deductible - personal insurance. In this case, the contract shall specify the number of days of illness for which the compensation is.

In motor insurance today the franchise is practically impossible to find, although it has great advantages for the insured and the insurer. This is due to the frequent attempts of fraud where the insured sought to inflict greater loss on the car to increase the amount of damage.

Deductible



At unconditional deductible the insurer's liability is determined by considering the amount of the deductible, which is not refundable. The cost of the deductible is deducted from the amount of the indemnity.

For example, the insured amount is 100 thousand rubles, the amount of a deductible - 15 thousand rubles. If the loss in the insurance case amounted to 10 thousand rubles, the insurance company does not pay compensation, because the loss less of a deductible. If the loss has reached 50 thousand rubles, the insurance company pays compensation equal to the difference between the loss and the deductible is 50 $ minus 15 $ = 35 $

Most prevalent deductible received in motor insurance and property insurance.

Sometimes the deductible is determined not in absolute (RUR) terms and in percentage. In this case, for any amount of loss, the insured only pays a certain portion.

For example, the insured amount is 100 thousand rubles, the amount of a deductible - 30% of the loss amount. If the loss in the insurance case amounted to 10 thousand rubles, the insurance company pays compensation in the amount of 10 thousand rubles, - (10*0,30) = 7 thousand. if the loss has reached 50 thousand rubles, the insurance company pays compensation in the amount of 50 thousand rubles(50*0,30) = 35 thousand rubles

Unconditional percent franchise is rarely used. In Western countries it's used in health insurance to reduce the expenses of the insured for medical research.