Glossary

 

  • Accident An event or occurrence which is unforeseen and unintended.
  • Accident Insurance  Insurance cover of the loss of any limbs or eyes, etc. in the event of an accident. It is also generally covers compensation to the policyholder’s dependents in the event of death. 
  • Accident year An accident year grouping of claims means that all the claims relating to events that occurred in a 12 month period are grouped together, irrespective of when they are actually reported or paid and irrespective of the year in which the period of cover commenced.
  • Accidental Bodily Injury Injury to the body as the result of an accident.
  • Accord and Satisfaction  When one party has discharged its obligation under a contract, it may elect to release the other party from its obligations. When this is done in return for a new consideration, the release is known as accord and satisfaction. 
  • Act of God  Event caused by nature that is so unpredictable as to be unavoidable, for example, the timing and location of earthquakes or floods. Acts of God are normally insured against as a matter of course. 
  • Actual Total Loss  Insured item that has been lost or completely destroyed. The full insured value is payable by the insurer. 
  • Actuary  A person professionally trained in the technical aspects of pensions, insurance and related fields. The actuary estimates how much money must be contributed to an insurance or pension fund in order to provide future funds. 
  • Additional insured  An assured party specifically named under an insurance policy that is not automatically included as an insured under the policy of another, but whom the named insured’s policy provides a certain degree of protection. (e.g. bankers or financial institutions) 
  • Affreightment  Carriage of goods by sea.