Insurance

Insurance

Financial cover in case of an accident that causes damage.

Types of insurance

Legally required (house and car) and voluntary (gadget, health, pet, travel).

Premium

The amount you pay each month (or each year) to keep your insurance policy active.

Insurance policy

Details of what is insured and for the period in question, usually one year.

Insurance agent

An individual who works with one insurance company.

Broker

A person who works for themselves on behalf of companies to get you the best deals.

Actuary

A professional who calculates the price of the premium.

Assessor

A person who arrives on the scene and decides the amount of compensation to be paid.

Proposal form

An application form for insurance.

No claim bonus

A reduction in your car insurance premium that you receive for each year you don't make a claim.

Insurable interest

You must benefit from its existence and suffer from its loss; you must own it.

Utmost good faith

You must provide truthful information on the insurance proposal form.

Indemnity

You cannot make a profit from your insurance claim.

Subrogation

If you suffer a loss but receive compensation, you must give it back.

Contribution

When the insurance is so much that you have to use more than one insurance company.

Average clause

When you only insure a percentage of the thing you own.

Uninsurable risk

A situation where the insurance company might refuse to insure some risks due to high likelihood of occurrence.

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Increases the cost of premiums.

Discounts

Decreases the cost and premium.

Third-party fire and theft

Car insurance that provides cover for damages to third parties, plus extra cover if your car is stolen or damaged by fire.

Fully comprehensive

Car insurance that covers damages to your vehicle even if you're at fault for the accident.

Policy excess

Part of the claim not covered by the insurance company.

Whole life

A type of life assurance that pays out a lump sum when the insured person dies.

Term assurance

Coverage for a certain time period; pays a death benefit if the insured dies during that period.

Endowment assurance

Life insurance that offers both a death benefit and a guaranteed payout after the term.

Extra loadings

Additional costs for life assurance based on dangerous occupations or hobbies.

Discounts for life assurance

Reduction in premiums for non-smokers and non-drinkers.