Are you involved in an insurance-related dispute? Below is a summary of insurance terminology that you may encounter.
Aggregate– the amount of money an insurance company will pay under its policy for all claims, which will arise during the period of insurance.
Assessor – an assessor reviews the lodged claim forms and assists the insurance company to approve/deny the insurance claim.
Certificate of Insurance – a document that provides a summary of your insurance terms under the insurance policy.
Claim – is the request you lodge seeking for your insurance policy to respond if you have suffered loss and/or damage as a result of an event/accident.
Claimant – a third party making a claim under the insurance policy.
Cooling-off period – a period of time that allows you to withdraw from your insurance policy if you change your mind and obtain a refund.
Coverage – the scope of protection provided by an insurance policy.
Disclosure (duty of disclosure) – information that the insured will need to provide their insurer, which includes anything that the insured knows or could reasonably be expected to know that may affect the insurer’s decision to provide the policy of insurance and/or vary the terms of the insurance policy.
Excess – also known as a deduction. It is the amount that you will need to pay your insurance company for each claim you make under your insurance policy.
Endorsement – an additional provision that is included in the insurance policy that either adds, deletes, or alters the general terms of your insurance policy.
Code of Practice – also known as General Insurance Code of Practice. It is a voluntary code that sets minimum standards for insurers seeking to raise the service standards across the general insurance industry.
Good Faith (duty of utmost good faith) – a common law duty that each to the insurance contract must act with fairness and honesty in their dealing with each other.
Indemnity – is the security or coverage that will protect you against loss, damage or injury.
Negligent – is when you have not used reasonable care and obligations arise to another person. This usually occurs when something has gone wrong, for example, a motor vehicle accident that caused injury to another person.
Product Disclosure Statement (PDS) – a set of terms and conditions concerning your insurance policy that the insurance company must provide.
Premium – an amount of money that the insurer will charge you for the insurance period.
Subrogation is a common law right allowing an insurer to take over the insured’s rights upon a claim lodged by the insured.