AXA Insurance Glossary

If your sum insured is less than the replacement cost then any claim will be paid in proportion. For example, if your sum insured is only 75% of the replacement cost, then you would only receive 75% of the cost of any claim for loss or damage to property.

Goods are deemed to be beyond economic repair where the cost of repairing the insured property exceeds the value of that property. In such cases we would pay the claimant the market value of the insured property at the date of loss, subject to the terms of the policy.

This insurance pays the cost of repairing or rebuilding your home if it is damaged by unforeseen events (as detailed in your insurance policy). The sum insured should also include debris removal and professional fees.

This insurance covers a business in the event of the loss rendering the business inoperable or hindered by an event such as a fire or a breakdown of machinery. The policy will define the gross profit and uninsured working expenses within the policy wording, which will be subject to increased costs of working and savings.

An insured party who has undergone a loss, which they believe to entitle them for compensation under the terms of their insurance policy.

This insurance covers loss or damage to property within your home. For example, furniture, clothing, personal possessions etc. Contents cover is a separate type of insurance to buildings insurance, which covers the structure of your property.

If a claim is covered by two or more insurers, then each shall pay an equatable proportion of that claim.

Insurers will pay up to - but not beyond - the minimum necessary to place you back in the same position as previous to the loss.

A must for all employers. Employers liability insurance is required in case any employees pursue their employer for compensation in case of (for example) unfair dismissal, sexual discrimination, or injury in the workplace caused by employer negligience.

The agreed amount of some or all losses arising under an insurance contract that must be borne by the insured.

A term in an insurance contract, which excludes the insurer from liability for specified types of loss. An exclusion may apply throughout a policy or it may be limited to specific sections of it.

On the happening of an event insured against, the Insured will be placed in the same monetary position that he/she occupied immediately before the event taking place.

A person is said to have an insurable interest if the event insured against could cause that person a financial loss. For example, anyone may insure their own property as they would incur a loss if an item was lost, destroyed, or damaged. If no financial loss would occur, no insurance can be arranged.

Insurance Confidential is a confidential helpline run by the Irish insurance federation for the reporting of Insurance Fraud.

A legal contract, which states the terms of the agreement between the insured party and the insurance company. This document will contain exclusions of warranties and other clauses, which may require to be interpreted by professionals.

InsuranceLink – InsuranceLink is an industry database of claims used for the prevention and detection of fraud.

A person who is insured under a contract of insurance. This person is also referred to as the policyholder.

A policy which covers the insured against third party claims or, in the case of liability insurance, claims by employees or members of the public.

Usually employed by the insurance company, the loss adjuster investigates the claim and gives his confidential opinion of the amount of compensation the insurance company should offer to the claimant under the terms of the policy. The Loss Adjuster is paid by, and reports to the Insurance Company.

Employed by the claimant to ensure that they receive fair compensation for their loss. The loss assessor does the same research as the loss adjuster, but with the claimants' interests in mind. The Loss Assessor will negotiate with the Loss Adjuster until he or she is satisfied that sufficient compensation is being offered in settlement of the claim.

Loss Injury, harm, damage or financial detriment that a person sustains. Losses may be insured or uninsured. Whether a loss is covered by a policy or certificate of insurance depends on the terms of that document and local law.

Cost of running the business includes the direct cost of the SBU and indirect costs charged from the service departments. Note these cost exclude any Claims costs (claims dept. cost and indirect costs of claims)

A material fact is a fact which would influence the mind of a prudent underwriter in deciding whether to accept a risk for insurance and on what terms.

Charge for the Motor Insurance Bureau to cover the cost of uninsured drivers.

This is where insurers will pay the replacement cost, as new, in the event of a total loss. Nowadays, insurers prefer to replace through their pre-selected suppliers.

This is a percentage reduction you get on your car or home insurance premium. It is based on the number of years since you made a claim.

This is a statutory body appointed to represent the interests of the public to investigate and address unresolved complaints reported by individual citizens.

This means that other people driving your car with your permission are covered by your policy as long as they hold a valid driving licence and meet the age critertia.

The person who is insured under a contract of insurance.

This is the amount you pay for an insurance policy. It can be a once-off lump sum or it can be a monthly or yearly payment.

An insurer will only be liable to pay a claim under an insurance contract if the loss that gives rise to the claim was proximately caused by an insured peril. This means that the loss must be directly attributed to an insured peril without any break in the chain of causation.

To acquire, install and commission such that the insured is returned to pre-loss situation.

The practice of insurers transferring portions of risk portfolios to other parties by some form of agreement in order to reduce the likelihood of having to pay a large obligation resulting from an insurance claim. The intent of reinsurance is for an insurance company to reduce the risks associated with underwritten policies by spreading risks across alternative institutions.

In effect, insurance that we buy for our own protection. The risk of loss is spread so a disproportionately large loss under a single policy doesn't fall to us alone. Reinsurance Ceded - the unit of insurance transferred to a reinsurers by us.

Partial recovery of claims when the claims or event (catastrophe) exceeds the reinsurance treaty threshold.

Where an insurer agrees to replace irreparably damaged or stolen goods with goods of a similar type and quality instead of paying a cash sum to the insured.

To acquire, install and commission such that the insured is returned to pre-loss situation.

A term denoting a legal right that is reserved by insurers. Subrogation is the right for an insurer to pursue a third party that caused an insurance loss to the insured. This is done as a means of recovering the amount of the claim paid to the insured for the loss.

The maximum amount that an insurer will pay under a contract of insurance. You must be careful to adequately insure otherwise you may find yourself subject to average.

Someone other than the insured or his insurer.

Total loss is said to have occurred when the subject matter of an insurance is lost, destroyed or damaged beyond repair.

This is the same as Average (above).

It is the proposer / insureds duty to disclose all material facts to the risk being covered. A material fact is a fact which would influence the mind of a prudent underwriter in deciding whether to accept a risk for insurance and on what terms. The duty to disclose operates at the time of inception, at renewal and at any point mid term.

A contract that has no legal effect and is therefore unenforceable in a court of law.

The amount deducted from a claims payment to cover the depreciation of the property insured through usage over time. Where cover is provided on a "new for old basis" (where the insurer agrees to replace an old item with a similar new one) no such deduction is made.