Glossary
1. ADD-ONS
Purchase of additional benefits or cover on the existing policy.
2. ADJUSTER
Carries out the process of investigation and settlement of damages for the Insured.
3. ADJUSTING
The final process of settlement of losses with the Insured.
4. ADVANCE FUNDING
It refers to an upfront payment against a contractual payment due in the future.
5. Agent FUNDING
A person or a group of people selling insurance on behalf of an insurance company.
6. AGE LIMITFUNDING
The qualifying age for an insurance policy.
7. AMENDMENT
A change to an existing rule or protocol, provided in writing.
8. AMORTIZATION
This occurs when a debt is paid off in regular portions,over a period of time, based on a pre-determined, fixed repayment schedule.
9. ANNUITY
Flow of payments made periodically over time.
10. APPLICATION
IA form filled out by the applicant for the purpose of receiving insurance from the Insurer on submission of certain information required in order to provide insurance cover.
11. ARBITRATION
A process of resolving disputes with the aid of an unbiased person or committee that helps determine the amount of loss.
12. ASSESSOR
Also known as the Surveyor, this person determines the estimated value of the goods for the underwriters to be able to settle the claim based on the sum payable arrived at after value estimation.
13. ASSIGNMENT
Transfer of a person’s interest in an insurance policy to another person in the legal sense.
14. ASSURED
Entity indemnified against loss through insurance.
15. AVERAGE CLAUSE
A clause in the policy which states that if at the time of damage, the property value is less than its real value, then the compensation by the Insurer will be reduced to the extent of the property value after loss.
16. ATTACHMENT POINT
Refers to the level at or beyond which excess insurance or reinsurance limits would apply.
17. Broker
An independent professional person who is registered under the Insurance Act who advises customers on insurance. The broker operates as your agent, and not that of any insurance.
18. Commission
This is the money that is paid to agents or brokers who sell an insurance product on behalf of an insurance company. Commissions are paid by insurers.
19. Excess
This is the amount the insured is expected to make when making acclaim. This amount is usually specified in the policy. It discourages the insured from making very small claims and instead meeting this cost themselves.
20. Insurance
Insurance is a contract in which an insurance company promises to compensate an insured.
21. Insurer
Is the company which accepts risks after receiving premiums and pays claims.
22. Insured
The term ‘insured’ refers to the person who has taken insurance against various risks and who pays a premium for the insurance.
23. Premium
The amount you pay to an insurance company, sometimes in regular installments or as per your agreement with the insurer for your insurance policy.
24. Proposal
This is the application form which you have to fill in when you apply for insurance cover.
25. Sum insured
It relates to the value of goods at risk and this is the basis upon which the premium is calculated.
26. Third Party
Any other person who may be affected by your actions – for example, in a car accident, it would relate to damage to their car. In this context, it is well to recognize that the first party in an insurance policy is you, and the second is your insurance company and the third is the other person or vehicle in the accident.
27. Underwriter
The person who decides how much to charge and who manages the account that bears the cost of claims for motor or household insurance, or the person who decides.
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