Insurer or the Company
The Insurance Company is committed to cover the risks agreed upon with the
Insured. It pays indemnity when loss occurs.
The Insured
An individual or an institution which is covered against specified risks in consideration
of payment of the insurance premium either in one or several payments and provided
that they comply with the terms and conditions of the Policy.
Premium
Financial Contribution of the Insured against the policy issued in order to
obtain the insurance coverage for the transfer of risk from the insured to the
insurer.
Sum Insured
The Insurer’s maximum liability, which is the value indicated in the Insurance
Policy, based on which the premium is determined.
Insurance Application Form
The basis of the contract; the best means to get information about the risk; a
proposal by the Insured; which is based on the “Principle of Utmost Good Faith”.
The Policy
The legal document evidencing the Insurance Contract. It includes the
insurance coverage, conditions and exclusions and it is the written evidence of
what has been agreed upon.
Re-insurance
The mechanism of shifting risks of the insured risks from the Insurer to the
Re-Insurer and indemnification of the Insurer by the Re-Insurer for what is paid
to the Insured Person(s) in the event of a loss.
Co-Insurance
The Insurer accepts a percentage of the risk within its capacity of the insured
risks. The Insured Person or their advisor will seek other Insurer(s) who may
accept the remaining percentage of the risk.
Cover Note
A temporary document confirming validity of the insurance coverage. It could
be a simple letter from the Insurer or a document that the Insured may need to
submit to a contractor, a bank or to a governmental authority.
Insurance Certificates
These certificates are issued in cases of mandatory insurances and marine
cargo insurance. They are issued during the validity period of the main policy
as a general agreement of insurance where they confirm that the coverage is
valid and acceptable to the official authorities.
Claim Form
This Form is used to report the occurrence of a risk or damage and to claim an
indemnity, giving details on the accident or loss suffered by the Insured Person.
