Frequently Used Terms 13 questions
Sum Insured

The sum insured is the maximum amount your insurance company will pay in the event that your property and current assets are destroyed or badly damaged. You’re not fully covered unless you have the right sum insured. This is why you need to make sure you’ve insured your property and current assets for what they’re worth, so that in the event of damage or loss of property, you get fully compensated.

Insurance Agent

The person or company authorised to represent the insurer (insurance company) in negotiating, servicing, or effecting insurance policies.

Endorsement

An attachment or addendum to an insurance policy; an endorsement changes the contract’s original terms.

Excess or a Deductible

A fixed amount or percentage of an insurance claim that you, the policyholder, is responsible for paying. The insurance company deducts this from the claim payment due to you.

Depreciation

The decrease in the value of property over a period of time, usually as a result of age or wear and tear from use.

Indemnity Value

The value of the property based on the cost of repairing or replacing it with property of the same kind and quality. Typically, indemnity equals the current replacement cost minus depreciation (age, condition, length of time in use, and obsolescence).

Personal Liability Insurance Coverage

This protects you and all family members who live with you against a claim or lawsuit resulting from (non-auto and non-business) bodily injury or property damage to others and for which you become legally obligated to pay. Claims could arise from you accidentally injuring someone with your umbrella or your dog getting loose on the street and biting someone

Replacement Cost

The amount necessary to replace, rebuild or repair damage to your home after suffering a loss with materials of similar kind and quality without a deduction for depreciation.

An Act of God

Natural disasters such as earthquakes, tropical storms, lightning, flood etc. The key feature of an Act of God is that it is normally a force of nature.

Peril

A condition that can cause a loss. Three examples are fire, hurricane and theft.

Comprehensive Motor Insurance Coverage

This type of insurance is purchased to provide financial protection from accidental damage to the insured vehicle no matter who is responsible. This cover usually includes collision, fire and theft, vandalism and can include special perils such as flood, earthquake, hurricane etc.

Third Party Coverage

Third party insurance is often the only option available for older vehicular models and other special types of vehicles such as sports cars, purpose of use of vehicle and foreign used vehicles whose parts are difficult to obtain in the insured market.

Third Party Fire & Theft is another option available which includes third party liability plus the added protection of accidental loss or damage to your vehicle from fire and theft. This cover is often sought when the vehicle is too old for comprehensive cover, is unable to obtain comprehensive cover owing to type or purpose of use of vehicle or the insured prefers to pay less premium but still obtain some additional cover for their own vehicle.

Claim

A person’s right to compensation/indemnity from an insurer/insured for loss/incident covered by the terms and conditions of their insurance policy.

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Frequently Used Terms 13 questions
Sum Insured

The sum insured is the maximum amount your insurance company will pay in the event that your property and current assets are destroyed or badly damaged. You’re not fully covered unless you have the right sum insured. This is why you need to make sure you’ve insured your property and current assets for what they’re worth, so that in the event of damage or loss of property, you get fully compensated.

Insurance Agent

The person or company authorised to represent the insurer (insurance company) in negotiating, servicing, or effecting insurance policies.

Endorsement

An attachment or addendum to an insurance policy; an endorsement changes the contract’s original terms.

Excess or a Deductible

A fixed amount or percentage of an insurance claim that you, the policyholder, is responsible for paying. The insurance company deducts this from the claim payment due to you.

Depreciation

The decrease in the value of property over a period of time, usually as a result of age or wear and tear from use.

Indemnity Value

The value of the property based on the cost of repairing or replacing it with property of the same kind and quality. Typically, indemnity equals the current replacement cost minus depreciation (age, condition, length of time in use, and obsolescence).

Personal Liability Insurance Coverage

This protects you and all family members who live with you against a claim or lawsuit resulting from (non-auto and non-business) bodily injury or property damage to others and for which you become legally obligated to pay. Claims could arise from you accidentally injuring someone with your umbrella or your dog getting loose on the street and biting someone

Replacement Cost

The amount necessary to replace, rebuild or repair damage to your home after suffering a loss with materials of similar kind and quality without a deduction for depreciation.

An Act of God

Natural disasters such as earthquakes, tropical storms, lightning, flood etc. The key feature of an Act of God is that it is normally a force of nature.

Peril

A condition that can cause a loss. Three examples are fire, hurricane and theft.

Comprehensive Motor Insurance Coverage

This type of insurance is purchased to provide financial protection from accidental damage to the insured vehicle no matter who is responsible. This cover usually includes collision, fire and theft, vandalism and can include special perils such as flood, earthquake, hurricane etc.

Third Party Coverage

Third party insurance is often the only option available for older vehicular models and other special types of vehicles such as sports cars, purpose of use of vehicle and foreign used vehicles whose parts are difficult to obtain in the insured market.

Third Party Fire & Theft is another option available which includes third party liability plus the added protection of accidental loss or damage to your vehicle from fire and theft. This cover is often sought when the vehicle is too old for comprehensive cover, is unable to obtain comprehensive cover owing to type or purpose of use of vehicle or the insured prefers to pay less premium but still obtain some additional cover for their own vehicle.

Claim

A person’s right to compensation/indemnity from an insurer/insured for loss/incident covered by the terms and conditions of their insurance policy.

No questions matching current filter