Accident forgiveness road accident forgiveness refers to a type of auto-insurance policy that protects your insurance premium rates even after your first at-fault car accident. This is something that some insurance companies offer, but is not common practice.
An actuary is a statistician who calculates insurance risks and their respective premiums. This is to ensure that an insurance company remains financially stable and profitable so that they will always be in the position to be able to cover insurance pay-outs for customer claims where necessary. They do this by setting prices, monitoring driving trends, and determining how much should be held in reserve to ensure they will pay out insurance claims.
Actual value refers to the fair market value of a property; the cost of replacement minus depreciation.
Adverse carrier refers to the other party's insurance provider when involved in a road accident. An example would be: when you are involved in a car collision with another vehicle on the road, you will need to request the other party's adverse carrier information, and vice-versa to allow both insurers to determine the next steps.
After-market parts refers to any auto-parts that are added to the vehicle after purchase. This means that they are not factory-standard or spare auto-parts from the dealer of the vehicle. In most cases they are additional vehicle parts used to enhance the look or performance of the vehicle and may impact your insurance premiums or the type of coverage you can purchase.
An agent is an individual who formally represents the insurance company or insurance provider and is able to answer most questions relating to the insurance products and their function.
An amendment refers to any and all changes that are made to a basic insurance policy contract. An amendment is an alteration to the policy, whereas an endorsement is adding more particulars to it.
An anti-theft device is an item placed within the vehicle that deters people from attempting car theft. Having any anti-theft device installed will significantly lower your theft risk factor and with some insurance companies, could result in a lower insurance premium.
Anti-lock braking system (ABS)
ABS is a computer-controlled high-pressure safety system installed in automobiles to assist the vehicle in braking. The anti-lock braking system ensures that all of the wheels slow at the same rate which prevents the driver from losing control of the vehicle.
Vehicles installed with ABS systems are safer and thus with some insurance companies, could result in a lower insurance premium.
At-fault is the term used to describe the party that is legally liable to pay for the vehicle damages in a road accident.
Auto damage refers to any damage dealt to a vehicle.
Bail bond coverage
Monetary protection to cover the expense of a bail bond as specified in the insurance policy, in the event that the insured is arrested and jailed.
A person who is entitled to receive benefits from an insurance plan based on the terms specified in the insurance policy.
Bodily injury coverage
Under a car insurance policy, this provides coverage for physical injury to a person or any part of their body. Third party liability insurance is used in order to cover bodily injury to a third party from any unintentional and unpremeditated action from the insured party.
Insurance broker (corporate)
An organization licensed by the government and insurance provider to resell insurance coverage that would be more suitable to different individuals.
Burglary or theft
Loss or damage to property due to forced entry by unauthorized persons with the intent to break into a vehicle, take, use or keep possession of the insured vehicle without the insured party's consent.
Terminating insurance coverage during any part of the insurance policy period by any party.
Protection for risks relating to a person's probability of developing certain types of cancers, depending on your insurance type, that may require minor to more significant medical treatment.
Protection for risks that comes with driving or owning a car that keeps you covered in the event of an accident on the road. It may provide coverage for collision, third party liability, flood, and much more depending on your insurance type. In most countries, drivers are required to have the minimum amount of liability insurance coverage at the very least which includes: bodily injury liability coverage and damage to property liability coverage.
a form of categorisation of vehicle models, brands and drivers by insurers in order to calculate and determine appropriate insurance premiums. This is usually done by an underwriter in order to be sure that every driver pays a fair price based on their risk level.
A catastrophe refers to a natural disaster that affects a specific geographic area. Catastrophes are devastating events that often result in injury and loss of life, including extensive property damage. Tsunamis, hurricanes, and mass flooding are considered to be typical examples of a catastrophic events.
The claimant is the person or entity who is presenting the insurance claim.
Claim examiner or assessor
A claim examiner is the agent responsible for investigating and settling a claim, representing the insurance company or insurance provider.
Damage to your vehicle due to a collision with another object or vehicle (Example; your vehicle backed up into another object accidentally while exiting a parking space which caused damage to the bumper of your insured vehicle).
Collision coverage pays for any damage to an insured vehicle, whether it hits or is hit by an oncoming vehicle or object, or is overturned. The amount of coverage is subject to the terms, limits, and conditions laid out in the initial insurance agreement.
Competitive estimate refers to the term used by insurance companies when requesting that you (the policy holder) submit multiple repair estimates and quotations for their consideration when making a claim. This can refer to auto-repairs or repairs to structural property such as your home.
Insurance coverage for the loss, damage, or destruction of any part of your vehicle under the insurance policy, which may include flood, fire and/or theft.
Insurance that is required by local law for all vehicles. This insurance type usually provides coverage for basic elements such as bodily injuries to vehicle occupants and any third party injuries caused by the usage of the vehicle.
A condition is a part of the insurance contract that details all of the duties and responsibilities of both parties (the insured and the insurance provider).
Critical illness insurance (serious illness insurance)
protection in form of financial support for medical expenses incurred from specific serious diseases or illnesses such as stroke, dengue, cancer, organ transplant, etc, that are not completely covered by normal health insurance. Typically the insurer will pay out a lump sum when the insured is diagnosed with an illnesses that is covered in the insurance policy.
An automobile that has been altered or modified from its original factory-standard settings. This includes any after-market parts being installed in order to alter the performance or appearance of the vehicle. This often results in higher premiums and adjustments to the auto insurance policy.
Damages refers to the total sum of money that a person or entity is legally obligated to pay to another party (e.g., when involved in a car collision that was your fault).
Declarations refers to the part of your insurance policy that states your full name, address, the property (or person) that is being insured, the location and description, the period of the policy, the amount of insurance coverage provided, and the resulting premium based on all the provided factors.
The Insurer does not accept the responsibility to cover the vehicle or individual under the insurance policy.
How much value does a vehicle lose because of age
A process by which a medical professional reviews and determines a person's medical condition or illness based on the underlying symptoms.
Either the insured or uninsured operator of a car or motorcycle who may also be the named driver/rider in the insurance policy.
Emergency road side service coverage or road side assistance, is a type of protection for problems that are not normally handled by a vehicle insurance provider, for example:
- Being locked out of your car
- Car towing that is not related to a road accident
- Having a dead car battery that needs re-charging
- Inflating or replacing car tyres
The process of adding some new parts to a basic insurance policy contract. An endorsement is the act of adding to a contract, whereas an amendment refers to any and all alterations made to a contract.
Excess insurance/Insurance deductible
There are two types of excess: “Policy Excess” and “Regulatory/OIC Excess.
- Policy Excess is the amount of money that the insured person has to pay for damages before utilizing the insurance companies coverage per incident, depending on the amount that is written in the policy schedule. Choosing a higher deductible/excess will lower the insurance premium.
- Regulatory/OIC Excess is the amount of money that insured person has to pay in the event of a claim per incident, depending on the conditions of the insurance coverage.
a form of a maintenance agreement to provide financial protection or warranty for the sudden breakdown of manufacturer parts that are no longer covered by the manufacturer.
The day at which the insurance policy will cease to be valid.
Fire insurance coverage
Insurance coverage for any damage or loss to a vehicle because of a fire.
A required period of time in a new insurance policy where the policy holder can review the policy coverage quality and choose to terminate the policy without incurring full cost or penalties.
A period of time after the premium payment date during which a payment can still be made so that the insurance policy can continue without interruption.
Health insurance (Medical insurance)
protection in forms of financial support for risk of various medical expenses resulting from injury, illness or disease for the entire body or parts of the body.
Homeowner's insurance coverage
Homeowner's insurance coverage refers to a type of protection that covers financial losses related to any incidents involving your home and property, including:
protection by means of financial support in case of damages, loss or death where a party promises to compensate another party in exchange for a cost that is based on the level of risk.
A notification from the claimant to the insurer, requesting financial coverage or other forms of compensation, i.e. repair, for any loss or damage that may be covered by the terms of the insurance policy.
The amount of risk or liability that is ensured or covered by an insurance provider for an individual party, company, or entity. Insurance coverage, such as third party liability, auto insurance coverage, or life insurance coverage, is provided by the insurer in the event of any unforeseen events such as a car accident or premature death.
Insurance policy/Policy wording
The contract under which insurance is provided to the insured by the insurer. Usually a written agreement between the insurer and the insured party, outlining the risk that the company takes on in order to provide financial compensation to the insured in exchange for a premium cost.
The price that an insurer charges for insurance coverage based on the vehicle and customer profile.
The insurance policyholder that purchased an insurance policy for their vehicle
The insurance company that underwrites the insurance policy and distributes the policy to the insured.
Life insurance coverage
Life insurance coverage refers to the type of protection that can provide financial security for your loved ones and dependents should you pass away prematurely. With such a policy you are tasked with naming a beneficiary (someone who will be responsible for your assets and estate), or multiple beneficiaries to receive a death benefit in the event that you should pass away.
An amount specified in the car insurance policy that can be used to pay for medical expenses in the event of injury during an accident.
Motorcycle insurance or BigBike insurance
Protection for risks that comes with driving or owning a motorcycle. It may provide coverage for collision, third party liability, flood, and much more depending on your insurance type.
A financial discount applied to the insured party by the insurer if the insured party has had a good driving history such no claims where the insured driver was at fault.
The person(s) whose name(s) appear in the insurance policy as the main driver(s) or an additional driver(s) of the vehicle under which the insurance policy is enforced. Most insurers allow adding up to 3 named drivers onto an insurance policy. However, if someone else that is not named in the policy ends up driving the vehicle, some penalty might be applied in order to use the benefit of insurance coverages. If one of the additional drivers named in the policy has an accident or makes a claim, it will affect the No Claim Bonus of the main driver as both drivers are named in the insurance policy for the insured vehicle.
Protection for risks to a person's health in the event of bodily injury, disability or death that results from any minor or major accident only. This excludes any pre-existing conditions, chronic diseases or illness.
The outline of time of coverage provided by your insurance policy which is a part of the insurance contract/policy.
An illness, injury or comorbidity existing in the insured before applying for a health insurance plan could be considered a pre-existing condition. Such pre-existing conditions may possibly include health disorders such as various chronic illnesses, cancer, diabetes, lupus, depression, or any other medical condition that may potentially be a precursor for more significant illness or disorder.
The ability to pay the total insurance premium in several instalments over a period of several months as dictated by the contractual agreement between the insured and the insurer.
Damage to property that belongs to the insured or a third party through an act of negligence or with purposeful intent.
A document or material with an estimated cost to insure a vehicle based on the profile of the driver and their vehicle.
The amount it costs an insurer to repair or replace damaged property based on the insurance policy issued to the insured.
A tax rate that is payable each year to the local Department of Land Transport based on the engine size of the vehicle. Vehicles operating on all roadways must show proof of successfully paying their Road Tax in the form of a window sticker provided by the Department of Land Transport.
Sum insured/Policy limit
The maximum amount of insurance coverage under the insurance policy. This is the maximum amount a policy will pay.
Extra cost that is applied by the insurer, usually applied as an increase in premium due to the driver’s actions such as accidents where the driver is at fault. Surcharges will normally be applied for a year or longer until the driver has shown proof of improving their driving behavior and conduct on the roads.
disability to the extent of being unable to perform duty pertaining to occupation for a temporary period of time.
Theft (Vehicle theft)
A type of loss of a car, motorcycle or other motor vehicle that is typically covered under comprehensive car insurance.
Another person or party that is other than the insured or the insurer.
a type of insurance coverage that provides financial support in case the driver or owner is found responsible for causing damages or injury to other drivers, pedestrians, residents as well as their vehicle or property.
Total permanent disability
disability to the extent of being unable to engage in any occupation or work for remuneration, totally and permanently.
The process of analyzing, classifying and calculating the risk of insuring certain applicants based on their profile, history and vehicle in order to provide them with the most appropriate insurance premium or reject them altogether.
Insurance coverage that is not required by local law but which usually provides significantly more protection to the insured party and their vehicle in comparison to compulsory insurance.
Also known as a qualifying period, which is the time before the insurance coverage will begin but after full or partial payment has been made by the insured as dictated in terms and conditions or within the insurance policy. The insured may not receive benefits for claims filed during this waiting period.