Insurance Glossary

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Repatriation Benefits - Expenses incurred to travel back to home country following sickness abroad.

Risk - The obligation assumed by the insurer when it issues a policy. The spreading of risk across a broad base of the population, adjusted for statistical probability, and the protection against catastrophic loss, is the entire purpose of insurance. For risk assumption purposes, death is viewed as a contingency. That is, although death is certain, its timing is unknown. The process of evaluating and selecting risk is known as underwriting.

Risk Management - It is the science of identifying evaluating and economic control or risks which affect the assests or earning capacity of an enterprise. It involves minimizing the adverse effect of a possible financial loss by identifying potential sources of loss, measuring the financial consequences of a loss occurring, and using controls to minimize actual losses or their financial consequences.

Rate - The pricing factor upon which the insurance buyer's premium is based.

Reciprocal insurance - Insurance done by insurance company at a reciprocal exchange. That is to say business is given to reinsurer by insurance co. and some business is placed by reinsurer with main insurer on a reciprocal basis.

Reinstatement - The resumption of coverage under a policy which has lapsed. 1. Reinstatement of loss 2. Reinstatement of sum insured following a loss.

Replacement Cost - The cost to repair or replace property at construction costs prevailing at time of loss. It is the cost to repair or rebuild property without any depreciation.

Risk Financing - Measures to finance the losses that do occur. Risk financing may be done by buying insurance or retention, which includes "self insurance".


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