Deductible
A deductible is that portion of any claim which is not covered by the insurance company. It has to be paid by the policyholder out of his pocket. There are two types of deductibles — compulsory and voluntary. The compulsory deductible amount is fixed by the insurer and has to be paid necessarily by the policyholder, whenever any claim arises. In a voluntary deductible, the limit is chosen by the policyholder. In both motor and health insurance policies, deductibles, find a place.
If you choose to have a deductible voluntarily, it will reduce the premium.