Insurance TermsInsurance TipsOur Disclaimer 
With insurance, the last thing that you want when you are on the hunt for cover is to be confused by complicated terms and vocabulary. The insurance market can be remarkably expansive and even though some phrases pretty much explain themselves, there are others which can leave you stumped. Here, we look at the five types of insurance that we focus on at Insurance-Info and decipher some of the most complicated terminology.
Agreed value of a car: When you take out an insurance policy, your vehicle usually requires being valued in order to determine how much you should pay in your premiums. This is the amount that the insurer establishes based on the information given.
Cooling-off period: If you get a car insurance policy that isn’t for you, most insurers have a cooling-off period of two weeks where you can cancel your policy. The 14 day period where you can do this usually begins a working week after the policy is established or from the date where the Certificate of Insurance is given, whichever is sooner.
Declared driver: If more than one person is driving your car, you need to declare this in your insurance policy.
Event: This is the official way of explaining that you needed to make a claim under your policy.
Excess: This is the amount that you contribute towards any work that you may need to have done to your car after an event. Once you have paid this amount, the insurer will pay the rest. If you need work doing after an event where a driver was under 25 or hasn’t had an Australian license for 24 months, you may need to pay more excess.
Legally roadworthy: This is an insurer’s way of making sure that your car is practically safe to be on the road.
Market value: This is how much a replacement car would be worth should your own be damaged beyond repair. Usual factors that need to be considered include what type of car it is, how old it is and the general condition of the car in question.
Contents with a maximum limit: Some items are only covered to a certain amount by a home insurance policy if it is a particularly valuable item.
General contents: Contents that you own and that reside in your home. Usually, these are contents that are not contents with a maximum limit.
Insured address: When you take out a policy, this is the address that is assigned the insurance and it includes any buildings or land within it.
Insured events: Protection against an event which results in a claim being required.
Period of insurance: When you take out a policy, these are the inclusive dates outlined by your insurer as your period of insurance.
Special limit items: This is when the items that you want to cover in your home insurance policy can only be protected for a specific amount by your insurer and you require insurance for a higher amount for that product alone.
Sum insured: The total amount of insurance on your policy which includes everything covered from buildings and contents to items of value.
Total loss: This is usually the total cost to replace a building or contents after an event of significance which results in a claim.
Total premium: The amount payable on an annual basis for home insurance cover.
Accident benefit: If you cover your family for medical treatment in the event of an accident, some insurers will give you a monetary benefit per person affected in the event.
Agreement hospitals: With some insurers who offer private care, a number of selected hospitals institutions where care can be sought are outlined.
Baby bonus benefit: Some insurance policies allow the event of childbirth and any risks that surround it up to a year before the birth of a baby.
Co-payment: This allows customers to pay in part with insurers for things like overnight stays and other costly treatments in a move which can lower premiums.
Couple policy: A couple policy is applicable when the person who applied for the insurance is married legally.
Dependent children: The person who applies for the insurance is known as the Primary Policyholder. This means that any children who are in the legal care of the Primary Policyholder and/or their partner to whom they are married can be protected by a policy up to the age of 21.
Excluded service: This is where a medical procedure is not protected by the health insurance cover. Excluded services vary from insurer to insurer.
Limits: These limits vary dependent on the policy and determine how much healthcare costs a claimant can apply for on a yearly basis. Some limits are also set for medical procedures which have to be repeated numerously.
Medical Levy Surcharge: An additional small percentage charge for high-earning families who do not have adequate hospital cover.
Partner authority: Where the married partner of the Primary Policyholder can make decisions on the health insurance claims on their behalf.
Pre-existing condition: A medical complaint which existed before an insurance policy was taken out. Pre-existing conditions can affect whether or not an insurer will draw up a policy for the hopeful policyholder.
Time limit on claims: Some claims become invalid if they are filed after a specific amount of time following an event.
Benefit period: The amount of time that a claim can be made after an event occurs.
Policy expiry date: The date in the future where a life insurance policy will become invalid and no claims will be possible.
Date insured from: On official policy documentation, this is the date from when the cover is active and when claims can be made.
Life Care: Should the insured die, this is the amount outlined in the policy documentation that is payable to the family of the deceased.
Nominated beneficiary: A trust where a Life Care fund would be paid to in the event of the insured’s death, be it through accident or illness.
Policy anniversary date: Some insurers conduct an annual review of a life insurance policy if it is long-standing cover. Every year from the date when the original life insurance became binding, some insurers will review the current insured’s situation.
Premium due date: The date when payment of a premium is due if it is paid a year in advance, usually on the policy anniversary date.
Appointed solicitor: Should your business need to attend court in a matter of law, an appointed solicitor is your legal representative as approved by the insurer.
Attendance expenses: The expenses of an absent employee in circumstances which is beyond the employer’s control.
Capital additions: Anything that is added to buildings or contents as a whole when the period of insurance has begun.
Indemnity period: The period that begins once a significant event affects the business which may require a claim. The period ends when the event has concluded or when the period of insurance covered by the insurer ends.
Limit of indemnity: Some insurers have a restriction of the amount of money that is payable should an event arise.
Product Disclosure Statement: A document that can be in three parts and that explains the full terms and conditions of the business insurance policy taken out.
Risk: The chance of an event happening which can determine the overall cost of a premium the business has to pay.
Territorial limits: The limits set by Australia for where your business insurance is active.