B

Benefit policy

A policy that provides stated pre-agreed amounts & benefits on the occurrence of certain defined events rather than exact financial compensation.

C

Cancellation Clause

A clause in an insurance contract which permits an insurer and/or the person insured to cancel the contract before it is due to expire. The clause may allow for the refund of part of the premium in respect of the unused portion of the policy.

Claimant

The person making a claim.

Claims History

A detailed breakdown of previous claims, including details of paid and outstanding claims; ideally confirmed by the current insurer.

Cooling off period

This is a certain amount of time the policyholder can cancel the policy if you change your mind at the start without penalty. However, there may be some costs depending on the investment/insurance contract, but these will be set out in your documentation. This is also known as ‘time to change your mind’.You have the right to withdraw from a policy of insurance within 14 days from the starting date of cover, or from the date which you receive the policy documents, whichever is later.

Community rating 

Private health insurance principle that cross-subsidises the cost of private medical insurance from young to old and, to some degree, male to female.

Consumer Protection Code (CPC) 

Code issued by the Central Bank of Ireland setting out requirements that regulated insurance companies must comply with in order to ensure a minimum level of protection for consumers.

Co-Insurance

An arrangement where an insurance policy is shared by more than one insurer. 

D

Duty of Disclosure

Your duty when seeking insurance to inform the insurer of every material fact which an insurer request. The duty arises when getting quotes for new insurance. It also applies if you look for a variation of cover and at renewal of your policy. 

Declined Cases Agreement

An agreement among motor insurers, whereby motorists who experience difficulty obtaining motor insurance (after a minimum of three attempts) can apply for cover under the DCA programme as operated by Insurance Ireland.

Deductible 

The amount of loss that is to be borne by the insured prior to being able to claim under a policy. It is more generally known as an “excess”.

E

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F

First party

The first and second parties are simply the parties to an insurance contract – the insurer and the insured/policyholder. 

G

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H

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I

Indemnity

The principle whereby a person who has suffered a loss is restored, as far as possible, to the same financial position that he/she was in immediately prior to the loss, subject to any contractual limitation as to the amount payable (the loss may be greater than the policy limit). The application of this principle is called indemnification.

Intermediary 

An intermediary is a broker or agent who advises clients about their insurance needs, helps them to select the most appropriate policy and provides an ongoing service in all subsequent matters relating to the policy. 

J

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K

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L

Loading

An extra charge to a standard premium reflecting the additional risk being taken on by the insurer. E.g., a motorist with a number of penalty points, may find their motor premium is loaded.

Loss Adjuster

A professional who is appointed to investigate the circumstances of a claim under an insurance policy and to advise on the amount that is payable to the policyholder in order to settle that claim. Loss adjusters are generally appointed by underwriters.

Loss Assessor

An expert in dealing with property insurance claims, appointed by the insured to prepare and negotiate a claim on their behalf with the insurer.

Liability 

Being legally responsible for something, for example an accident or an injury to a third party.

Lifetime Community Rating 

The older a person is when they take out private health insurance, the higher the premium they will pay; however, the premium may not subsequently be increased to reflect the person’s advancing age.

Lifetime Cover 

The requirement that, once an individual has been put on health insurance cover, the insurer may not cancel or refuse to renew such cover, irrespective of that individual’s claims history.

Limit 
The insurer’s maximum liability under an insurance, which may be expressed ‘per accident’, ‘per event’, ‘per occurrence’, ‘per annum’, for example.

M

Material Damage

Physical loss or damage to a property.

Market Value

Most policies provide settlement for a total loss claim (the car is stolen or irredeemably damaged) on a "market value" basis. This means you are entitled to an amount representing the cost of a vehicle of similar make, model, age and condition. Or, if the vehicle is less than one year old, many insurers will replace it with a new vehicle of the same make and model you lost.

An Agreed Market Value cover is especially useful for classic or vintage cars - where the insurer agrees to pay a specified amount in the event of a total loss.

Material Fact

This refers to any fact that would influence the decision of an insurer in deciding whether to accept an insurance risk and the terms including the premium level at which the company would be willing to grant cover.

Maturity Value

This is the final value of a savings policy if it is allowed to run for the full term specified in the contract.

N

No Claims Bonus

This means you are rewarded on an ascending scale for each successive year without a claim and is most commonly associated with comprehensive motor insurance policies, and some home insurance policies If you do claim, your bonus is reduced, although if the accident is not your fault, certain insurers will leave your bonus intact. Some insurers allow you to "protect" your bonus by paying an extra premium, so you're not penalised for just one claim.

O

Open Enrolment

The principle that a private health insurer must accept all individuals regardless of the risk they pose.

P

Personal Injuries Assessment Board

This is a statutory body, which provides independent assessment of personal injury compensation for victims of workplace, motor and public liability accidents. This assessment is provided without the need for the majority of litigation costs, such as solicitors and experts fees. Under the PIAB Act 2003, all claims for personal injury (excluding medical negligence) must be submitted to PIAB.

Proposal Form

This is a form which contains a number of questions that you are required to complete for an insurer when seeking insurance. This form is needed to assist the insurer to decide whether or not it is willing to provide insurance cover and, if so, the terms of such cover.

Premium

The amount charged by an insurer in return for providing insurance cover, for motor home health and travel insurance policies etc.

Peril

Is a risk or cause of loss which can be identified. Your car and home insurance policies do not cover every type of loss or damage, such as mechanical breakdown or wear and tear. Instead, they cover loss and damage resulting from certain perils. On a car policy this can include accidental damage, fire, and theft. On a home insurance policy this can include storm, fire, escape of water, theft etc.

Q

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R

Reinsurance

Insurance protection bought by an insurer to limit its own exposure. The availability of reinsurance protection allows an insurer to expand its own capacity to take on risk. Without a reinsurance facility, each insurer would be able to accept less business.

Reinstatement 

If an insured property is damaged, rather than paying the policyholder a sum of money the insurer arranges for the property to be restored to its previous condition.

S

Statement of Facts

On confirmation of cover, either by phone or online, the insurer will issue a statement of facts to the insured. It is essential that this document is read and any anomaly on same to be advised to the insurer.

Subrogation

This means that the insurer, which has paid a claim under a policy, has a right to step into the shoes of the insured in order to exercise in his name all rights he might have with regard to the recovery of the loss which was the subject of the relevant claim paid under the policy up to the amount of that paid claim.

Sum Insured

The maximum amount that an insurer will pay under a contract of insurance. The expression is usually used in the context of property and life insurance where (subject to the premium cost) the insured determines the amount of cover to be purchased.

Surrender Value

This the value of a life policy if you decide to cash it in before the maturity date. Surrendering a policy rather than maturing it may incur charges. 

Standard Construction

Normally refers to building construction that is substantially of non-combustible components, e.g., block, brick and concrete walls with slate, tile or other non-combustible roofs. Individual insurer wordings will vary.

T

Term Assurance

This is the simplest form of life assurance and is pure protection product. A term assurance policy is taken out for a set period of time (e.g., 10, 20 or 25 years) and guarantees to pay out a specified sum if you die during that period of time. If you survive the term of the policy, no payment is made.

Third Party

Someone other than the insured or his insurer who has suffered injury or loss. A third party is not a party to the insurance contract but a party who seeks to be compensated for some injury or loss caused by the insured.

U

Under Insurance

Where the sum insured does not represent the true value of the property insured. 

Underwrite

This is the process whereby an insurer assesses if insurance cover can be provided and what premium should be payable. It can also refer to the acceptance of the obligation to pay or indemnify the insured under a contract of insurance.

Unit Linked

The premiums under your savings policy are invested in units of the investment funds of your chosen life assurance company and the growth in the value of the units purchased determines how much your policy is worth at any point in time.

V

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W

Wear and Tear

The amount deducted from a claims payment in recognition of the depreciation of the property insured through usage of it over time. Where cover is provided on a “new for old basis” i.e. where the insurer agrees to replace an old item with a similar new one, no such deduction is made.

Waiting period

A period of time set forth in a policy that must pass before some or all coverage does begin, and are common in private health insurance policies.

X

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Y

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Z

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