A deductible basically reduces the maximum payout, but an excess doesn't. Let's see an example:
Scenario 1: A policy has sum insured 1,000 and excess of 100:
If the loss to the insured is 500, the insurer will pay out 400
- If the loss to the insured is 1,500, the insure will pay out 1,000 (ie the sum insured).
Scenario 2: A policy has sum insured 1,000 and deductible of 100:
If the loss to the insured is 500, the insurer will pay out 400
- If the loss to the insured is 1,500, the insure will pay out 900 (ie the sum insured less the deductible).