Bharti AXA INSURANCE GLOSSARY Aggregate Excess Insurance Aggregate excess insurance provides coverage once the policyholder has paid out a predetermined amount over a specified time period. It aims to protect the policyholder in case of unexpected large claims during the policy period. This kind of insurance does not cover a loss even, but total losses over a given period. For example, consider an employer who has to pay worker compensation to the employees in case of an accident at the workplace. Based on their previous experience, they estimate that claims in a does not cross ₹50,00,000 – and have set aside funds accordingly. Now, imagine that due to machine failure multiple employees get injured. While each claim is not very high, the claims total up to ₹75,00,000. In this scenario, if the employer has taken out an aggregate loss insurance with a threshold of ₹50,00,000 – the company will be responsible for pay outs up to ₹50,00,000 only. The insurer will cover the pay outs beyond that. The limit of amount the policyholder has to be pay out before the insurance cover kicks in can be stated as a fixed rupee value, a percentage of the premium paid or a specific loss ratio. Aggregate excess insurance is especially important for companies that practice self-insurance, i.e. set aside monies to be used in case of an unexpected loss event. Request Call Back Category * - Select -CarTwo WheelerHealthTravelPersonal Accident Buy Renew Claim submit Related Posts Disclaimer : The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Travel needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.