Glossary.
In the context of Insurance, Assurance is mainly used as a British term for insurance, (most of the time life insurance is assumed).
An assurance can also be a guarantee of a certain event will or will not occur.
This is why some insurance are called assurances. In the case of life assurance, (or life insurance), death is not an option so when you die someone is assured to received a certain compensation. But if you insure your car, this might not happen.
Compensation
The act of been compensated. Basically if you claim against your insurance and your insurance company pays you, (or replaces your loss), then you are been compensated.
Once you have been compensated this usually means the end of your contract between you and the insurer, (because they fulfilled their end of the deal).
Cover
This is what you are insuring yourself against. For example if you have a "fire and theft" car insurance, it means that you are covered in case you car is stolen or it burns, (in certain conditions only).
A cover is also what you are covered for, although your might have an insurance for "fire and theft" your cover might only be 50% of the value of the car 20 years ago.
Indemnity
An insurance payout is often called an indemnity, or it can be insurance to avoid paying expenses in case of a lawsuit.
Insurance
If you are been insured it means that you entered into a contract whereby, in very simple term “something will happen if something else happens”.
For example, if your car is stolen, you will get a certain compensation.
The reason why contracts are so confusing is because of special clauses that are in the contract.
So in the example above, you will receive compensation, unless the car was not locked, or the car was outside the state.
Life insurance
(see insurance)
No Claims Bonus
Usually associated with vehicle insurance. This is a bonus given to policy holders, if you can prove that you made no claim for a certain amount of time then the insurance company will give you a discount when you purchase the policy.
It is in the benefit of the insurer to reward safe users, statistically a driver with no or few claims is unlikely to eve be responsible for an accident.
Policy
Premium
Recreational vehicles
Vehicles that you would normally use to fun/relaxation.
Remuneration
Payment or compensation received for the insurance. In term of insurance this is what you are getting for your loss.It can be financial but it is not always, it depends on what your contract says.
Renters insurance
Insurance taken by a tenant against damages to their own property.
Most landlords will have insurance for their own property. Renters Insurance will cover other damages to the tenants’ property, (jewellery, clothes, and electrical appliances)
Third Party
A third party is a person/entity/building, (anything), which did not enter into a contract with you but somehow got involved.The insured, (you?), is the first party. The insurer is the second party.
Third party insurance is often seen in motor insurance where the other driver is insured by your own insurance.
