ABANDONMENT
The act of relinquishing title to damaged or lost property b the insured to his insurers for claiming a total loss. Some policies stipulate that there shall be no abandonment to the insurer. The abandonment clause is generally found in marine insurance contracts.
ABSOLUTE LIABILITY
Liability or responsibility without fault or negligence; also know as strict liability.
ACCIDENTAL DEATH BENEFIT
A feature added to a life insurance policy providing for payment o an additional death benefit in case of death as a result of accidental means. It is often called double indemnity.
ACCOMMODATION LINE
An insurance company at times will accept from a policyholder or an agent or broker, insurance that it would ordinarily have rejected on a strict underwriting basis. Such business is known as an "accommodation line". Insurance that, by itself, would not be acceptable to an insurer is written as an accommodation where the possibility of securing other desirable business seems to justify it.
ACTUARY
An actuary is in effect a mathematician engaged in the business of insurance. He is generally concerned with the application of probability and statistical theories to the practical problems of insurance, investment and related fields. The actuary may specialise in life insurance, or some other class of insurance or pension work, or a combination of these. Actuaries construct mortality tables, calculate insurance premium reserves and dividends for participating life policies, construct valuation and annual reports in compliance with insurance regulatory requirements.
ADJUSTER
An individual who acts for the company or the insured in the settlement of claims. He leads to agreement about the amount o a loss and the company's liability. Adjusters may be salaried employees of adjusting organisations or individuals operating independently and engaged by the companies to adjust a particular loss.
AGREED VALUE
The sum to be paid in the event of a total loss under a valued policy.
"ALL RISK"
The term refers to the modern package trend of writing so many perils in one contract that enumerating them becomes impossible. The so called all risk policy does not really cover all risks, but instead simply identifies the perils not covered rather than those included. It has been criticised on the ground that the term "all risks" is misleading to the insuring public since it does not cover all risks. Please read your policy to know the risks covered by the policy.
ANNUTTY
A special type of insurance contract not yet common in the Nigerian market that provides payment of an annual sum during the life time of a person (or for a stated number of years) in return for a previous payment of sum of money. Therefore the purchase of annuity is the purchase of a right to receive fixed periodic payments either for life or for years.
In the case of a Deferred annuity contract, payments begin at a specified future date provided the beneficiary is alive at such date. An annuity policy is an insurance policy providing for monthly payments to a fixed date and to continue throughout the insured's life.
ARBITRATION
A way of settling disputes without going to court; judgement is given by a technically qualified arbitrator or umpire.
ASSURED
Same as insured, i.e. the person insured or covered under the insurance contract. Also known as the policyholder.
ASSURER
Same as the insurer or insurance company granting insurance protection to the insured.
AVERAGE
The term "Average" in Fire and non-Marine insurance is a method of sharing the loss between the insurer and the insured if there is under insurance. Where Average is said to apply and there is under insurance, the insured's claim is reduced in proportion to the under insurance.
In Marine insurance, the term "Average" means loss or damage; and Particular Average means partial loss or damage, while General Average refers to liability for a share of any loss or sacrifice necessary in order to save a ship or cargo.
BETTERMENT
An improvement made to an insured property when it is rebuilt or repaired following loss or damage.
ID BOND
A guarantee that the contractor will enter into a contract, if it is awarded to him, and furnish such contract bond (sometimes called Performance Bond) as is required by the terms of the bond.
BLANKET POLICY
Insurance policy covering several items under one sum insured.
BONUS
Benefits paid in addition to sum insured in with-profits life insurance.
CATASTROPHE
An insurer who purchases and is entitled to indemnification under a contract of reinsurance (also the reinsured).
CEDE
Reinsure.
CEDING COMPANY
An insurer who purchases and is entitled to indemnification under a contract of reinsurance (also the reinsured).
CESSION
That part of an insurance ceded to a reinsurer.
CLAIM
Demand by the insured for payment under his policy.
|
OUR COMPANY
