From the wording of your auto insurance policy it would appear that you have coverage in Ontario, Canada. Here when a policy notes that "this Policy contains a partial payment of loss clause" it basically means that a deductible will be due for your physical damage coverages of Collision and Comprehensive if you must use them to place a claim.

We have seen Ontario auto insurance policies that state they have the partial payment of loss clause and then go on to say "a deductible applies on each claim." Or others may say a deductible is due for each claim but then list any exceptions such as if your loss or damage was caused by fire or lightning or by theft of the entire automobile. Or the exception may just be listed by saying "except as stated by your policy."

An car insurance policy may contain a partial payment of loss clause to explain that the insurer shall pay only an agreed proportion of any loss which may be sustained or the amount of the loss after the deduction of a sum specified in the policy (such as the deductible amount). When there is such a clause on an Ontario, Canada car insurance policy it is our understanding that it is required that the face of the policy notes that “this policy contains a partial payment of loss clause.”

In Ontario there are certain elements required of the certificate of auto insurance and the Financial Services Commission of Ontario (FSCO) lists the statement "this Policy contains a partial payment of loss clause" as element number 63 and thus a requirement to be on the policy as a notice to you that the insurer does not pay a full payment of loss but only partial since you have a deductible amount that you must pay.

With an All Perils policy it means you have combined the Collision or Upset and Comprehensive coverages so you are covered for losses that fall under these headings according to the terms of your policy. In Ontario Comprehensive coverage is explained as covering a described automobile against loss or damage other than those covered by Collision or Upset, including perils listed under Specified Perils, falling or flying objects, missiles and vandalism. While Collision covers damage when a described automobile is involved in a collision with another object or tips over.

The partial payment of loss clause then should apply to these physical damage coverages in the form of your deductible amount being due before repairs are done for covered losses or having it subtracted from a total loss payment. The clause thus affects your claim if something happens to your car by just informing you that your deductible amount will be due.

If you want to know more about the wording of your car insurance policy and this specific clause then speak to your insurance agent or the FSCO which is the insurance regulator for Ontario.