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I is also for
See ‘Additional Peril’ under a Fire policy. Impact covers damage to property by any road vehicle and often by animals as well. Wordings used to exclude damage caused by the Insured’s own vehicles.
Certain policy conditions are not actually written into the policy but that have evolved from basic insurance principles over the years. For instance, the insurance cannot cover illegal operations and there must be an insurable interest in any insured property.
Increased costs may be incurred by an Insured in trying to maintain turnover following an insured loss. Such costs, with certain limits can be insured under a Business Interruption Policy.
Indemnity is one of the basic principles of insurance and has been legally defined on several occasions. It states that the Insured should not profit by any claim, but should be returned to as near as possible the same financial position as he would have been had the loss not occurred. Certain policies are not subject to the principle of indemnity, notably Personal Accident and Life policies with fixed sums insured. The modern approach of “reinstatement” and “new for old” covers put the Insured in a financial better position, but this is justified by the fact that second-hand replacement items may not be readily available.
Index Linked Policies increase sums insured automatically at renewal by the amount of a given index.
Also known as Industrial Special Risks, IAR or ISR policies offer wider cover than property covers written on a fire and allied perils basis. While accidental damage cover is given in addition to the fire and allied perils, the main difference is probably the difference in the way cover is described. Under a fire and allied perils policy, the wording defines exactly what perils are covered. Under an IAR policy everything is covered other than the exclusions, defined in the wording. IAR policies are usually available only to especially large accounts.
Certain goods are, by their very nature susceptible to damage and it would be unreasonable to expect insurers to pay for such damage. Examples of inherent vice are would be deterioration of imperfectly cured skins, spontaneous fermentation or combustion of improperly dried grain.
Certain Medical Expenses policies are restricted to expenses incurred during hospitalisation and do not cover out-patient care. Such policies are said to provide In-Patient Cover only.
The cover under a Marine Cargo policy is defined by standard policy wordings issued by the Institute of London Underwriters (or the American Institute of Marine Underwriters). These are called Institute Cargo Clauses. While there are numerous clauses and different clauses will apply to different cargoes, normally the widest cover is provided under Institute Cargo Clauses A with more restrictive cover under, Institute Cargo Clauses B and Institute Cargo Clauses C. These new clauses replaced the previous Institute Cargo Clauses All Risks, With Average (WA) and Free of Particular Average (FPA).
Insurable Interest is one of the basic principles of insurance. It states that the Insured must have a financial interest in the property insured such that he benefits from its continued existence and will be prejudiced by its loss or damage. This basically differentiates insurance from gambling. The insurance policy insures the interest of the policyholder in the property. If there is no insurable interest, the policy will not respond. Many legal precedents have been seen relating to insurable interest and when it must be effective. With life insurance an insurable interest must be present when a policy is arranged but not necessarily when a claim occurs, with marine insurance an insurable interest must be present when a claim occurs but not necessarily when a policy is arranged and with most other insurance arrangements an insurable interest must be present when a policy is arranged and when a claim occurs.
The insurance industry uses intermediaries to introduce clients to insurers and to provide day to day servicing of a client’s insurance needs. The intermediary may be an international insurance broker offering a wide range of professional risk management services and access to world wide markets or he may be a part time tied agent acting purely as a commission agent. Trafalgar International are among the largest insurance brokers in Thailand and can offer access to international markets and a highly professional insurance service.
J is also for
A Marine Insurance term referring to the throwing of cargo overboard to lighten the ship in order to save it from sinking. Jettison is one of the many perils covered under Institute Cargo Clauses A, B and C.
An all risks policy offering very wide cover for jewellers and similar shops and for manufacturers of jewellery.
Your personal jewellery can best be insured under an all risks section of a domestic insurance policy. Trafalgar International have developed a specialist policy for your domestic insurance. Click here for details.
Jurisdiction means the legal environment which will apply to a contract of insurance. A jurisdiction clause is often endorsed on Liability policies so that they will respond only to an action brought under a particular jurisdiction. Most commonly jurisdiction of USA and Canada would be excluded.
K is also for
Insurance can be purchased by individuals or companies worried about their key executives to cover ransom demanded by kidnappers. Most policies also cover professional advice and independent negotiators to remove emotion from negotiation with the kidnappers. The negotiators sole objective is to secure the release of the victim. This is a very specialist insurance product where confidentiality is obviously very important.
An agreement between two insurance companies whereby each insurer pays the vehicle’s repair costs of its own policy-holder regardless of who was responsible for an accident. While an insurer may be able to pursue a recovery from the party responsible for an accident of from his insurer, this is a costly administrative procedure. The Knock for Knock Agreement simplifies recovery claims among insurers and the cost is seen to balance out over a long period of time.
L is also for
Your policy will lapse or expire if you fail to pay the renewal premium.
Public Liability policies include cover for legal costs and expenses incurred by the Insured with his insurers’ consent or recovered by any claimant against the Insured. Policies are now available to cover legal services in certain circumstances. For example, recovery of uninsured expenses following a motor accident or legal costs to evict a tenant who refuses to move out at the expiry of the lease.
Liability at law can arise under tort (or civil actions) or under contract. While settlements are often made out of court by mutual agreement, legal liability can only be finally decided by the courts. Public, Products Professional Liability, Directors and Officers and other Third Party Liability insurance would normally cover only non-contractual obligations.
Covers Legal Liability to third parties, including legal costs
A standard Fire policy will automatically cover damage to property caused by fire, lightning or certain types of explosion.
Liability policies normally contain a limit stating the maximum amount insurers will pay for any single event and perhaps for all events occurring in a single policy period. Limits should be carefully reviewed to ensure they are sufficient.
Liquidators take on onerous responsibilities when they take over a company for liquidation, as they are responsible for maximising creditors’ recovery and can face legal action if they do not act in a proper professional manner. If for example uninsured property was destroyed following a fire, the liquidator could be held responsible, as he had not protected the property with insurance. This situation can be a serious problem as many insurance policies laps automatically if the Insured becomes bankrupt or enters into an agreement with creditors. Special insurance packages can be arranged to protect liquidators by covering property, liability and business interruption risks immediately the liquidator becomes responsible. Cover is automatic and premiums calculated upon declaration of the details of the individual risks.
A life insurance policy for animals, usually horses other than thoroughbred race horses, cows, bulls etc.
This is the world’s oldest and most famous insurance market, attended by Lloyds brokers and Lloyds underwriters. Lloyds started in a London coffee-house frequented by ship owners in the seventeenth century.
While there are exceptions, insurance policies normally run for a period of one year only. Insurers will however offer a small discount if you undertake to offer the renewal to them for a period of three years at the same terms. LTAs are no longer common as insurance rates have fallen dramatically in recent years.
Loss Adjusters are independent firms, dealing with the investigation and settlement of insurance claims. They are generally highly qualified and experienced operations that can fully understand the details of the Insured’s loss and he insurance policy cover. Although insurers pay their fees loss adjusters are impartial. Loss adjusters should not be confused with loss assessors who are employed by the Insured to represent them in a claim recovery.
See Business Interruption.
If you are involved in an accident you may have to hire a replacement vehicle. Standard Motor policies do not include cover for such costs but cover is available from specialist companies in certain territories. If the accident is cause by someone else it may be possible to claim loss of use from the other party or his insurers.
The ratio of losses paid and outstanding to premiums. A low loss ration means the insurance is profitable to the underwriter. Bear in mind however that the insurance company must cover commissions and administration costs as well as claims.
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