A relief to insurers (or reinsurers) of each and every loss that does not exceed a specified amount. A "franchise deductible" will require the reinsured to retain the whole of the loss if the loss does not exceed an agreed amount but in the event that the agreed amount is exceeded the whole of the loss will be payable by the reinsured.
If a policy features a franchise expressed in money terms, there is no payment by the insurer if the total claim is below the franchise figure. If it is above the franchise figure, the agreed claim is then paid in full. Time franchises may also be used particularly for machinery breakdown covers.
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Either a percentage of insured value or a specified dollar amount in an insurance policy which must be reached before an insured loss is paid in full. It is similar to a deductible in that insured losses less than the franchise amount are not paid, but different from a deductible in that insured losses equal to, or more than, the franchise are paid in full. Also known as a "disappearing deductible." See " Average Clauses."
a deductible below which nothing is payable and beyond which the entire amount of the sum insured is payable
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A provision in some policies stating that the insurance company shall not be responsible for any loss which is less than a certain amount. If the loss equals or exceeds that amount, however, it will be paid in full.
A provision in freight insurance conditions which exempts the insurer from particular average losses, in any one accident, under 3%. The provision is waived if the loss is caused by fire, or by the ship stranding, sinking or being in collision.
Like a deductible, but if the amount of the merchandise is met or exceeded, the loss is paid in full.
A minimum percentage or amount of loss which must be attained before insurers are liable to meet a claim, Once it is attained the insurers must pay the full amount of the loss / The amount of salary disregarded under an occupational pension scheme because it is taken care of by a state scheme.
the amount of a loss at or below which no claim is payable by the insurer. Above that amount, the loss will be met in full.
Deductible in which the insurer has no liability if the loss is under a certain amount, but once this amount is exceeded; the entire loss is paid in full.
A marine insurance term referring to a provision in a policy stating that partial losses will be adjusted if the loss exceeds a certain percentage of the total value of the shipment. For example, a policy that describes the coverage as a "10% Franchise" does not cover losses below 10 percent. However, losses of 10 percent or more are completely covered.
In marine insurance, an amount or percentage specified in the policy that must be reached before a claim is payable. Once the amount or percentage is attained the claim is payable in full.
Similar to an excess, but if the claim is for an amount higher than the franchise the full amount of the claim is paid.