TERMS IN INSURANCE
TERMS IN INSURANCE
- UNDER WRITER: An underwriter is a marine insurer who he agrees to undertake a portion of marine risk. This is because risks associated with marine is very costly that one insurance company cannot afford to indemnify alone when loss occurs
- UNDER WRITING: This is the process whereby a merchant of insurance company undertakes to cover, underwriter apportion of a risk or assuming part of a risk.
- RE- INSURANCE: This is a process whereby an insurance company agrees with another company in order to re- insure an already insured risk. This may be because the risk is too much that if a loss occurs, they may not be able to cover it alone. But the spread of the risk doesn’t in any way affect the relationship between the client and the insured. Therefore, it is the transfer of risk from one insured to another.
- PREMIUM: This is the amount the insured pays to the insurance company for insuring this subject matter or property
- PROPOSAL FORM: This is a form that must be filled by a person wishing to enter into an insurance contract. He must disclose all relevant information truthfully in the form before submitting to the insurer.
- COVER NOTE: This is a temporary insurance cover note to enable the insured to enjoy the benefits of a policy while its main form is being in processed.
- SURRENDER VALUE: This is the amount in cash an assurance company will repay to an insured (endowment policy holder) if he wishes to discontinue prior to the date of maturity. The amount would depend on the premium paid.
- INSURER: This is the insurance company who undertakes to indemnify another against a specified loss insured against.
- INSURED: This is the person who has insurable interest in the subject matter of the policy. He pays premium for insuring it.
- JETTISON: This is the act of a ship master for the interest of the cargo and passenger, deliberately and reasonable throws/ or overboard some of the cargoes in order to lighten the ship and save it from danger of sinking.
- BROWN CARD: This is a kind of insurance card in which a motorist wishing to visit a country within the West African sub region is expected to carry with him to cover third party liability if he takes an insurer of the motor.
- BARRATRY: This is the act of destructing of a ship or throwing goods over-board by ship master or crew without goods intentions. Or that I contrary to the interest of the ship owners.
- CLAIM FORM: This is a form filled by the insured if the risk insured against occurs loss in order to be indemnified.
- ACTUARY: This is a person involved in life assurance, assessing the risks and calculating the premium and handling matters connected with pension funds
- EX-GRATIA PAYMENTS: these are payments made by an insurance company out of sympathy to an insured outside its legal obligations
- ASSESSOR LOSS ADJUSTOR: This is the person that assess the amount that will be paid to the insured if he suffers the risk insured against the insured must fulfill, in order declaring the policy invalid.
- WARRANTY: This is the condition the insured must fulfill, in order to avoid the insurer declaring the policy valid.