Insurance Glossary

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Accident - Any Unforeseen and unexpected event is considered an accident

Actuary - A specialist in the mathematics of insurance who calculates rates, reserves, dividends and other statistics. (Americanism: In most other countries the individual is known as "mathematician.")

Arial devices - Arial devices means satellites, aircrafts, balloons etc

Agent - An insurance company representative who solicits, negotiates or effects contracts of insurance, and provides service to the policyholder for the insurer.

Abandonment - For a damaged property it may not be worthwhile to go in for repairs because the cost of repairers may exceed the value of the property when repaired. The insurer is entitled to take over the interest of the assured in whatever may remain of the subject matter insured and all proprietary rights incidental thereto. In ocean marine insurance, the transfer by the insured to an insurer of all rights, title, and interest in and to the insured property, in return for the sum insured. In property insurance, abandonment is relinquishing ownership of damaged property to an insurer to permit a total loss claim to be made.

Absolute Liability - Liability for damages even though fault or negligence cannot be proven.

Accident Insurance - A form of health insurance against loss by accidental bodily injury.

Accidental Death Benefit - A benefit in addition to the face amount of a life insurance policy, payable if the insured dies as the result of an accident. Sometimes referred to as "double indemnity."

Accompanied baggage - Baggage being taken by someone with his own person whilst traveling.

Acquisition Costs - The insurer's cost of putting new business in force, including the agent's commission, the cost of clerical work, fees for medical examinations and inspection reports, sales promotion expense, etc.

Acquisition Costs - The insurer's cost of putting new business in force, including the agent's commission, the cost of clerical work, fees for medical examinations and inspection reports, sales promotion expense, etc.

Act of god - Any accidental act which could not have been prevented by any amount of human care and fore thought.

Actual Total Loss - It is a loss where the goods are completely lost and become irrecoverable.

Additional cover - An insurance policy extended to cover additional risk perils such as strikes, riots and Civil commotion etc. on payment of extra premium.

Adjuster - A person who investigates and settles losses for an insurance buyer.

Affidavit - A statement or declaration required when a claim is filed. In general, it contains the facts on which the claim is based.

Affreightment - A contract for the carriage of goods by sea for payment expressed in bill of lading.

Aggravation of risk - Making make the existing risk worse, more troublesome, etc.

Agreed Bank Clause (Agreed Mortgage Clause) - A provision in the insurance contract under which the insurer obligates itself to pay the mortgagee even if the owner breaches some contract condition so long as the breach was not within the control or knowledge of the mortgagee. Also refer "Mortgagee Clause."

Agreed value policy - Policy, which undertakes to pay a specified amount in case of total loss. Under this case the policy does not take into account the current market value.

Airway bill - Airfreight consignment note.

All risk insurance - Insurance against loss of or damage to properly arising from any peril except those that are specifically excluded.

Annuity - An agreement by an insurer to make periodic payments that continues during the survival of the annuitant(s) or for a specified period

Arbitration clause - The clause in an insurance policy that spells out how disagreements over a claim are settled.

Arranged total loss (Marine, Hull) - An agreement between a hull underwriter and the assured ship owner, whereby the underwriter is prepared to pay a compromised settlement on a total loss basis because although the estimated cost of repairs does not justify a constructive total loss, repairing the ship would be an uneconomical proposition in view of its market value and the high cost of repairing the damage. The settlement, usually allows the assured to retain the wreck. Refer:” Compromised total loss".

Arson - The willful and malicious burning of, property, often with criminal intent.

Assessor - Person who estimates the value of goods for the purpose of apportioning the sum payable by the underwriters to settle the claims. Also called as Surveyor.

Assets - All funds, property, goods, securities, rights of action, or resources of any kind owned by an individual or institution.

Assured - Party indemnified against loss by means of insurance.

Automatic reinstatement Clause - A clause in an insurance policy which provide for automatic reinstatement of the full face value of the policy after payment for a loss.

Automatic Reinsurance - An agreement that the insurer must cede and the reinsurer must accept all risks within certain explicitly defined limits. This is also called as treaty arrangement.

Automatic sprinkler - A property protection device to prevent damage by fire. The sprinkler head is made of a substance that melts at a low point and releases a spray of water to extinguish fire.

Automobile fleet - A group of automobiles under the same ownership and management.

Average adjuster - Independent expert who assesses the liabilities of the various parties to a common maritime adventure and to classify the various items of expenditure between general and particular average, viz, ship, Freight and cargo.

Aviation Insurance - Aircraft insurance including coverage of aircraft or their contents, the owner's liability, and accident insurance on the passengers.

Avoidance - A right, which can be exercised by, and underwriter to relieve him of liability under the policy because the assured has been guilty of a breach of good faith or where the risk in voyage policy has failed to attach within a reasonable time after the underwriter wrote the risk.

Award - The decision in arbitration.


Contact Us

Al Ahlia Insurance
        P.O. Box 5282, 4th floor
        Chamber of Commerce Building
        Manama, Bahrain

Marketing@alahlia.com

0973 17 225860

0973 17 224870