Understanding “Excess” in Insurance Claims

November 10, 2023 by


“Excess,” commonly referred to as “deductible,” is a term that you will encounter when you insure your motor vehicle, home, contents or business. Understanding how it works is important, as it can help you navigate the world of insurance more effectively.

When you make an insurance claim, you will be required to absorb a percentage of the expense/loss which is called the excess. The percentage you pay varies from policy to policy, but ranges from two to five per cent. JNGI pays the difference that remains.

Here’s an example:

  • Your policy excess is 2% of the sum insured 
    • Your property is insured for $10,000,000
    • You experienced damage/loss to your property amounting to $500,000
    • The excess would be 2% per cent of the insured value of $10,000,000 which would be $200,000
    • You will need to bear $200,000 of the $500,000 loss, while JNGI will cover the remaining $300,000*

*Conditions apply

At JNGI, we are committed to providing the support and assistance you need during your insurance journey.