Legal terms

Official authorisation to conduct insurance activities within specified lines and classes.

Insurance capacity is the amount of liability an insurer or reinsurer is willing and able to assume for one risk, a group of risks, or a line of business.

A document prepared by the insurer after accepting an event as covered by the policy. It records the compensation amount and serves as the basis for payment.

Insurance indemnity is money or another form of compensation that an insurer provides after an insured event, if the loss falls within the policy terms. Put very simply, this is the very moment for which a person buys insurance: somethin…

An insurance policy summary is a short overview of the key terms: the parties and insured item, risks, sum insured, term, territory, deductible, exclusions and claim procedure.

Insured property means items, buildings, equipment, goods or other property that are clearly listed in the policy and protected by insurance.

An insurer's liability limit per claim is the contractual maximum the insurer will pay in total for all claims treated as one insured event.

The limit of indemnity, or sum insured, is the contractual maximum an insurer can be required to pay for a covered event, item or policy period.

A linked sum insured is a policy limit connected to another sum insured, an overall limit, or a specific cover. It shows the maximum amount that may apply to one part of the protection, subject to the policy terms.

Material facts are circumstances known to the policyholder that can significantly affect risk assessment and the terms of insurance.

Medical transportation services are the arrangement of transporting an insured person to a clinic, between medical facilities or home when their health condition requires it and the service is included in the policy.

Moral hazard is the risk that insurance protection may weaken the incentive to prevent loss or influence a participant’s behaviour.

Motor Third-Party Liability is an obligation to compensate for harm caused to other people or their property through the use of a vehicle. Who is responsible for the harm is determined by law and the circumstances of the incident.

A life insurance policy for which all required premiums have been paid, so coverage continues without further regular premium payments.

Damage to property that is not treated as a total loss under the policy. Compensation is calculated for the damaged part, subject to the contract.

A power of attorney is a document by which one person allows another to act on their behalf: sign documents, contact the insurer or receive a payout.

Product Liability Insurance protects a company against claims if its product causes injury, property damage or financial loss to a customer or third party.

A profit commission is additional remuneration calculated for the cedent from the result of a reinsurance treaty under the treaty’s own terms.

A life insurance policy with a lower premium for an initial period and a scheduled increase to a higher premium later.

Robbery is the open taking of someone else’s property, when the person understands that their item is being taken and the offender does not act secretly

The Schengen Area is a group of European countries that usually have no internal border checks and often use a common Schengen visa for short trips.

Sudden illness is an unexpected deterioration of health during the policy period, when a person urgently needs medical help.

A contract-defined interval during which specified losses are not covered. Check the policy for its duration, starting point and the risks to which it applies.

This is a road incident in which harm was caused to people, vehicles, roads, structures, or other property.