Terms and meanings that are commonly used in the insurance industry.
|
TERM
|
MEANING
|
| Accident | An event causing injury to an insured person and was not intended by them to happen |
| Agreed Value | The set amount an insurer will pay for an item or asset |
| Claim | A request for payment according to the policy terms made by you to the insurer |
| Cover | The amount of protection an insurance policy provides |
| Exclusion | A provision in a policy that excludes cover for certain events or conditions |
| Event | A single event or a series of events which have the same cause |
| EQ Cover | The cover provided by the Earthquake Commission in the event of damage to houses and their contents caused by natural disaster such as an earthquake. It's funded by the compulsory levy which is included in every home and contents policy premium |
| Excess/Deductible | This is the first amount payable by the insured towards the cost of the claim |
| Insured | Someone covered by an insurance policy |
| Indemnity Value | This is the value of the item at the time of the loss. Indemnity value is designed to put you in the same financial position you were in immediately before the loss occurred |
| Invoice Amount | This is the full annual charge for your insurances, including fees, levies, and GST |
| Liability | When you are legally responsible for damaging someone else's property |
| Policy Document/Policy Wording | A document outlining terms and conditions of insurance agreement for a specific insurance policy |
| Policy Summary | Document detailing your policy benefits |
| Policy Schedule | The document that states the benefits of your policy |
| Premiums | The regular payments made to an insurer in order to keep the policy going |
| Renewal | The insurer and policy owner agree to continue insurance from one risk period to the next |
| Replacement Value | This is the amount to replace an asset at the present time |
| Sum Insured/Cover Level/Benefit | The amound the insurer agrees to pay out under the policy's terms |
| Underinsured | Underinsurance is where someone does not have adequate levels of insurance, when insurance does not cover the full value of potential claims |
| Underwriter | Someone who assesses the risk of providing insurance to the person applying |
