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compulsory excess

A compulsory excess is the amount on each insurance claim that the policyholder is required by the policy to pay before the insurer pays the rest of the covered loss.

In plain English

It is the part of every covered claim that the policyholder must pay first from their own money. The policy makes this payment mandatory, and the insurer pays the remaining covered loss after that amount.

In context

Here, “compulsory excess” labels the fixed amount the policyholder would have to pay on each claim before the insurer pays the remaining covered loss.

Situation
Reading premium, deductible, excess, copay, limit, and out-of-pocket fields
What it communicates
labels a fixed excess amount on the quote summary

Meaning limits

The term identifies only this required first amount on each claim, not the full terms of the insurance cover.

Examples

“After a burst pipe damaged the floor, she paid the £300 compulsory excess on the claim and the insurer covered the rest of the loss.”

Core meaning

“Her policy carries a £300 compulsory excess on every claim.”

In context

  • excess Broader Term

    A compulsory excess is one kind of excess in insurance.

  • voluntary excess Contrast

    A compulsory excess is required by the policy, while a voluntary excess is an extra amount chosen by the policyholder.