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Glossary @ Aviation Insurance
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AeroSpace - Glossary Terms (133)
Aviation related Terms (88)
ACMI Lease(Aircraft,Crew,Maintenance and Insurance)
The Lessor provides the aircraft,one or more complete crews (including engineers),maintenance of aircraft and all insurance viz.Hull and 3rd party liability.The Lessor charges the Lessee on the basis of minimum Guranteed block hours limit per month, no matter whether the aircraft flies or not. The Lessee has to provide the fuel, landing/handling/storage/parking fees /crew transport, meals,flight navigation charges etc. Passenger,cargo insurance done by Lessee.. Besides Lessee may have to take War Risk cover at his end.
Adhoc Charter
Any ACMI Lease less than 1 month.
Air Navigation Services
These relate to operation & management of Air Navigation services during all phases of operation i.e. arrival, departure & enroute. Air Navigation Services comprise of such as (1)Air Traffic Management(ATM)(2)Communication, Navigation & Surveillance Systems (CNS) (3)Meteorological Services for Air Navigation (MET) (4)Search & Rescue (SAR) (5)Aeronautical Information Services (AIS).
In General Aviation, Aircrafts flown for Specialised purpose such as (1)Advertising eg.Banner Towing (2)Agriculture eg. Chemical/Fertilizer spraying (3)Air Ambulance (4)Construction (5)Photography (6)Observation eg. Crowds (7)Patrol eg. Pipe Controls (8)Survey eg. ARIEL survey (9)Search & Rescue (10)Fire fighting eg. Spotting (11)Water Bombing (12)Government Operations not covered under State flights eg. Ambulance Service by Health Ministry (13)Logging Activities (14)Parachute Dropping eg.Flight to carry parachutes (16)Towing other Aircrafts eg. Towing Gliders (17)Other similar acitivities.
Aerodrome refers to  the speficied Land/Water area to be used wholly/partly for the arrival, departure & surface movement of an aircraft. These include buildings, installations & equipment.
Aircrafts heavier than Air eg. Jets, Helicopters, Propellers etc.
Airport refers to place from where Arrival & Departure of Aircrafts take place. It is the responsibility of Airport Authorities to ensure that the aircrafts keep flying smoothly. The Airport Authorities can either handle the Airport services directly or can outsource their work.
Airport Services
Airport Services comprise of services such as Customs, Immigration, Public Health including Fire fighting/Ambulance/Medical Support, Agricultural Quarantine, Others.
Aircrafts lighter than Air eg. Balloons etc.
Admitted cost of repairing(AVN 11A)
Aggregate cost of labor, replacement parts & material to make good the damage covered by the policy,including cost of any necessary dismantling required for inspection & repairs and reassembly. Admitted Cost of repairing the Hull = cost of Labor + cost of replacement parts & material to make good the damage covered by this policy+ cost of any necessary dismantling required for inspection & repairs + Reassembly.
Admitted Liability
It is also known as Voluntary settlement provision and os usually added to the Passenger Liability Insurance. It is written on limit per person basis and the crew can also be provided this coverage. The intent of this cover is to offer to pay, regardless of legal liability, pre-arranged sums of money for the passenger accident's. At time of making voluntary settlement offer, a letter of release of liability against the insured must be obtained else the voluntary settlement is withdrawn.
Aircraft Liability Cover
It is generally taken by the insured alongwith the Hull Cover. The insured may or may not opt for passenger liability cover.
Non Commercial use of Owned/non owned aircrafts operated by individuals/Corporates for carrying Company personnel/property as per their business need.
Non Commercial use of Owned/non owned aircrafts operated by individuals/Corporates for Personal / Recreational purposed.
Aircraft owner /Operator - Fixed Base operators
These operators are airport based businesses which own,operate,buy,sell,rent and lease aircrafts. It also comprises of service operators viz. fuelling services, repairs, flight instruction services etc.
Aircraft owner /Operator - Flying Clubs
These aircraft operators/owners are non-profit organisations have at least 03 individuals who jointly own and operate the aircrafts for pleasure only.
Aircraft owner /Operator - Industrial Aid
Industrrial Aid operators refers to Corporations which own and employ full time, highly skilled Professional Pilots to fly them.
High valued aircrafts with the seating capacity of more than 20.
Aviation Product
It means:(1) Completed Aircraft or Space Vehicle or Satellite. (2)Any article forming part thereof or supplied for installation in or for use in connection with, or for spareparts for an Aircraft or Space Vehicle or Satellite or ground handling tools and equipment.(3) Training aids, instructions, manuals, blueprints, engineering or other data or any data or any article in respect of which engineering or other advice and services and labor have been given or supplied by the insured in connection with an Aircraft or Space Vehicle or Satellite.
Techniques available to quickly identify the passengers at check in. It includes fingerprints, iris, retinal, face shape or palm scanning. However, to use these standards, databases need to be establihed and maintained in an ultra secure environment.
Business - Aircraft
Use of an Aircraft for private, pleasure ,business or professional purposes but not for any hire or reward.It doesn't include aircraft's used for special uses.
Civil Aviation Authority
Charter Flights
Non Scheduled Operation of aircraft for carriage of Passengers, Cargo or both.
Commercial - Aircraft
Use of an Aircraft for private pleasure , business and used for carriage by the insured of passengers , baggage accompanying passengers and cargo for hire or reward.It doesn't include aircraft's used for special uses.
Contract Party(ies) - AVN 99
Contract parties refers to parties in the capacity of former financer, former lessor, former lease servicer or manager under the contracts- Lease servicer or manager refers to a Contract party who is appointed by one or more other contract party(ies)to provide services relating to the Equipment in connection with the contracts.
Damp Lease
This is similar to ACMI/Wet Lease with an exclusion of Cabin Crew. In this lease the SEP(safety and Emergency procedures) training needs to be given by the Lessor to the Cabin Crew .
Amount generally deducted by all insurance companies from the insurance claim.It is not applicable in case of Hull Total Loss. The policy cover defines the extent of deductible applicable. The deductible is not applicable when the aircraft is not in motion and loss is caused by fire, explosion, lightning, theft, robbery, pilferage, vandalism or accident to a conveyance on which the plane is being transported.
Digital Flight Data Recorders - They record over 100parameters per second. They are often played back through a Special Event Search and Monitor Analysis program to identify if any flight exceeds pre-set parameters. If this happens, further investigations are performed.
Documents of Carriage
With reference to Aviation insurance, it means a passenger ticket, baggage ticket or an air consignment note/airway bill(whichever is relevant to the liability cover by the policy) to be issued to the passenger /consignor/shipper before they board the aircraft or when the Insured takes charge of registered/checked baggage/cargo.
Dry Lease
This Lease is generally without insurance,crew,maintenance etc. Generally used by Banks & Leasing Companies.Aircraft registration is done by LESSEE.The Lease may be for 2 years or more. Dry lease is of 2 types : a) Operating Lease b) Finance Lease
Deep Vain Thrombosis-Disease the affects the passengers on long haul flights. It may be caused due to immobility, cramped seating, compression of the thighs by seat edge, dehydration from alcohol and cabin air-con units.
Electrical Risk Exclusion
Loss, destruction or damage by any the air craft due to over-running, excessive pressure, short circuiting,arcing,self heating or leakage of electricity from whatever cause(lightning included). This exclusion shall apply only to the particular air craft so affected and not to other machines, apparatus, fixture of fittings which may be destroyed or damaged by fire so set up.
Excluded costs
Excluded cost = Office expenses of the insured + Salary expenses of the Insured + General retainer fee for the counsel normally paid by the insured.
The meaning of Expenses is specifically in reference to Aviation Expenses incurred by the insured. It means reasonable and necessary costs exclusively incurred as a result of the recall and shall include costs necessarily incurred by the insured for the physical examination of the Aviation Product ; installation of a replacement Aviation product but does not include cost of such replacement Aviation Product. Costs covered are : communications, transport and advertising, cost of additional personnel, overtime payments to regular personnel and the out of pocket expenses of such personnel.
Federal Aviation Administration.
Finance Lease
Also referred to as Capital Lease. This operates if any 1 of the below conditions are met : A) It appears in the Balance Sheet of LESSEE as it is viewed as a purchase. B) The LESSEE has the option to purchase the aircraft at an agreed price at the end of the term. C) The Lease payment is more than 90% of the market value of the aricraft. D) The term of the Lease is greater than 75% of the aircraft's useful life.
Ferry Operations
Transit of Aircrafts to the Base country from where they will Operate and will be Registered.
When the aircraft is in take-off stage or attempting to take - off or when it completes it's landing run. A rotor-wing aircraft is said to be in flight when the aircraft is in air.
Fixed Wing Aircrafts
Aerodyne Category. These aircrafts are driven by Jet Engines, Propellers etc.
Geographical Limits
Geographical Limits beyond which the aircraft should not fly. This details is mentioned in the Insurance cover.
Ground Proximity Warning System - It helps to reduce the number of accidents when planes hit the ground.
When the aircraft is not in Flight/Taxiing or Moored.
Complete & continuous withdrawal of aircraft flight operatons due to an existing or alleged or suspected defect, fault or condition affecting the safe operation of 2 or more aircrafts and which results from an occurrence. Grounding orders may be received from Federation of Aviation Administration or The Civil Aviation Authority or any similar Civil Airworthiness Authority.
GroundHandling Services
These services can be referred to as those related to (1)Aricraft Maintenance (2)Aircraft Services (3)Baggage Handling (4)Catering (5)Crew Administration (6)Entertainment & Communication (7)Flight Operations (8)Freight & Mail Handling (9)Fuel & Oil Handling (10)Ground Administration & Supervision including emergency services (11)Ground Equipment Supply (12)Passenger Handling (13)Ramp Handling (14)Security Handling (15)Surface Transportation (16)Others.
Illegal Usage
No usage for illegal purposes allowed in insurance. If the usage is found to be for illegal purposes, the insurance gets void.
Launch Vehicle
Any Device, the purpose of which is to transport any person or article(eg. space vehilcle or satellite) to, from or in space. It includes both manned and unmanned vehicles.
Mandatory Order
With reference to Aviation insurance, it means any order requiring immediate modification, inspection or action to be performed under the emergency airworthiness directives of the CAA or the immediately adopted rule or immediate safety - of - flight rules of the FAA, or the equivalent rule, directive or procedure of any similar civil aviation authority.
Military - Aircraft
Aircraft Used for War, rescue , bombing etc. by the Military.
Military Aircraft Products
Aircraft products owned or used by or in possession of the armed services of any government . However, Aircraft products that are leased or chartered to the armed services of any government are not deemed to the Military Aircraft Products.
Any non-manned, self - propelled device(other than a Launch Vehicle) capable of free flight, whether self-controlled or not. Any ground support or control equipment used in connection therewith may also be a party of insurance cover.
In case the aircraft is designed to land on water whilst it is afloat. In this stage the aircraft is neither in Flight nor Taxiing. Risk of launching and hauling up is normally included in the insurance cover.
MRO Services
MRO services refer to Maintainence, Repair & Overhaul of Aircrafts. These services can be broadly categorised as (1)Hangarkeeping (2)Maintaining Aircraft Air Worthiness (3)Overhaul, inspection, replacement, defect rectification etc. (4)Repair work to restore aeronautical product to an airworthy condition as per airworthiness requirements (5)Other AirWorthiness Compliances.
Manuals in Aviation refers to Policy Documents that need to be prepared , followed, maintained & updated by the Aviation Operators for the safe, secure & sustainable develeopment of Civil Aviation. Some of the Manuals required to obtain NOC for operating Scheduled Operations in India comprise of -(1)Operations Manual (2)Training Manual (3)Quality Control Manual (4)Maintainence System Manual (5)Security Manual (6)Flight Safety Manual.These manuals need to be prepared, followed & updated reqularly by the operators.
Non owner insurance policy
It is for an individual who is not the owner of the aircraft but flies it occassionally. This insurance covers his liability for bodily injury or damage to property other than the insured aircraft eg. Aircraft Trainers.
Non Scheduled Operations
Flying aircrafts other than for Scheduled Operations.
Unexpected or unintended accident/incident(other than a Grounding) or continuous or repeated exposure to conditions causing : (1) Bodily injury /including care & loss of services/sickness /disease/death at any time resulting therefrom (2) Property Damage-Damage to or destruction of property , including the loss of use thereof. A series of occurrences is treated as a single occurrence.
Operating Lease
This Lease is generally without insurance,crew,maintenance etc. Taken by Banks & Leasing Companies.Aircraft registration is done by LESSEE.The Lease is from 2-7 years . It does not appear in the Balance Sheet of the LESSEE.
Operational Requirements
Every Country lays down their Operational requirements for granting Licences to operate in the Civil Aviation Sector of their Country eg. In order to obtain NOC in India as Scheduled Operator some of the Operational requirements to be met are - (1)Maintaining information about adequate qualified & trained staff, pilots etc. (2)Computerised set up for crew scheduling (3)Maintaining flying records, medicals etc. (4)Record management of crew licences,type rating of crew , engineers etc.(5)Submission of documents to Regulators to obtain NOC (6)Others.
Operational Life of Space Vehicle or Satellite
It refers to the life period the manufacturer of any Space Vehicle or Satellite specifies in the original sales contract as the operational/service life of such Space Vehicle or Satellite.
On Demand Flights
Non Scheduled Operation of aircraft for Commercial Business operation etc.
Overhaul cost
This term is used in Aviation Insurance with reference to the Aircraft Unit. Overhaul or replacement cost refers to the cost of labor and material incurred/to be incurred at the end of the Overhaul life of the damaged or a similar unit.
Overhaul life
Overhaul life is with reference to the life of Aircraft Unit. Airthworthiness Authority determines the usage, or operational and / or calendar time after which the overhaul or replacement of a Unit is required.
Any person in, on or boarding the aircraft for the purpose of riding or flying therein or alighting therefrom is a passenger. The passenger may be paying or a guest.
Permitted cost
Permitted cost = Accrued Interest after entry of judgment, investigation, adjustment and legal expenses . This amount can be claimed by the insured. It excludes all expenses for salaried employees of Insured and general retainer fees for Counsel normally paid by the insured.
Prime Manufacturer
Prime manufacturer is the one who sells its Aviation Product directly to and/or enters into a contract of sale with an Aircraft Purchaser.
Product Hazard
It refers to hazard in an aircraft product . This hazard in the product might be at the time of handling the product or using such product or consuming the product or pre-existing in a product.
Private Pleasure - Aircraft
Use of Aircraft for private and pleasure purposes but not for any business,profession,hire or reward.It doesn't include aircraft's used for special uses.
Product Liability - Aviation
Product Liability covers an insured's Legal Liability to 3rd Parties for Any bodily injury and/or property damage arising out of the defective designing or manufacture of an aircraft product. The loss may arise due to possession, use, consumption or handling of any goods or products manufactured, constructed, altered, repaired, serviced, treated, sold, supplied or distributed by the insured, after such goods or products have ceased to be in the possession or under the conrol of the insured.
Procedural requirements
Every Country lays down their Procedural requirements for granting Licences to operate in the Civil Aviation sector of their country eg. In order to obtain NOC in India as Scheduled Operator some of the Procedural requirements to be met are - (1)Obtaining FIPB approval in case of foreign investments in aircraft operations (2)Preparing Manuals & Policy Documents (3)Obtaining security clearence for foreign flight crew & engineers & so on.
Powered Aircrafts
Aircrafts such as Propellers, Jets, Helicopters, Rocket powered Aircrafts etc.
Aerodyne Category. These aircrafts have several rotorblades mounted on a single mast eg. Helicopters.
Routine Operations
Aircrafts that are flown as per the specific purpose for which they have been purchased/Hired.
Security Scanning
These equipments are used to detect weapons and other hazardous material.
Revennue Passenger Kilometres /(RPK)
It refers to Number of Passengers multiplied by the Distance flown.
Space Vehicle or Satellite
Spacecraft or Satellite including parts detached en route designed to travel to and/or from or into space or any orbit.
Scheduled Operations
Scheduled Operations refers to Scheduled flights at published timetables/systematic flights opened for direct booking by public.
Special Uses - Aircraft
Use of an Aircraft for instruction, aerobatics, hunting, patrol, fire-fighting, intentional dropping, spraying or release of anything, any form of experimental or competitive flying and any other abnormal hazard.
Specific Airworthiness Requirements
Every country lays down their Specific Airworthiness requirements for granting Licences to operate in the Civil Aviation Sector of their Country eg. In order to obtain NOC as Scheduled operator in India the operator is required to meet Specific Airworthiness requirements such as (1)Ensuring specific mandatory equipments to be fitted in the aircraft (2)Maintaining sufficient numnber of technicians in each category as required (3)Maintaining various checks eg. CVR readout etc.(4)Others.
Traffic Collision Avoidance System - It helps to reduce mid-air collisions. This works only if fitted in both the planes. It provides only height - related information, the lateral positions of planes is often inaccurate.
Rental - Aircraft
Rental Aircraft refers to an aircraft given on rent, lease, charter or hire by the original insured to any person /organisation for Private Pleasure and Business uses only and the aircraft is not under the control of the insured. It doesn't include aircraft's used for special purpose.
Part not attached to the aircraft.
Transportation cost (AVN 11A)
Transportation cost with reference to Hull insurance comprises of paying claim related to (a) Removing the aircraft to the repair site.(b) Transporting labor, replacement parts, material & equipment to make good damage covered in the policy (c) Returning the aircraft from the repair site to the airfield nearest to the place of accident or to its home field, whichever may be nearer.
Turnover (Product Liability insurance)
It refers to sale price of the Aviation Product(s)delivered during the policy period.
Ultimate Net Loss
It is with reference to the final claim amount payable to the insured .Ultimate Net Loss = Actual Liability of the Insured (-) All recoveries from the insured(-) valid and collectible insurances. Exception is Primary and underlying Excess policies. It excludes all excluded cost and permitted cost.
With reference to Aviation Insurance interpretation, Unit is a part or an assembly of parts (including any sub-assemblies) of the aircraft which have been assigned an Overhaul life as a part or an assembly. Nevertheless, an engine complete with all parts normally attached when removed for the purpose of overhaul or replacement shall together constitute a single unit.
Unpowered Aircrafts
Aircrafts such as Gliders, Baloons, Kites etc.
Wet Lease
This Lease is for a period >1month till 2years.The Lessor provides the aircraft,one or more complete crews (including engineers),maintenance of aircraft and all insurance viz.Hull and 3rd party liability. The Lessor charges the Lessee on the basis of minimum Guranteed block hours limit per month, no matter whether the aircraft flies or not. The Lessee has to provide the fuel, landing/handling/storage/parking fees /crew transport,meals,flight navigation charges etc. Passenger,cargo insurance done by Lessee.. Besides Lessee may have to take War Risk cover at his end.
When the aircraft moves under its own power other than in 'Flight'. Temporary halting of an aircraft is a part of Taxiing.
People related Terms (13)
Accident Benefit
In a life insurance product, there may be an option avialable to buy Accident Benefit insurance. Personal Accident Policy features eg. Death due to accident, Disablement due to an accident are available in this cover. In case of mishappening due to an Accident (as, this insurance if bought will pay an additional benefit (as per the policy coverage) equal to selected sum assured.
Age Limit
All insurance products related to Human Life are available for a specified age bracket. Age Limits state the Stipulated minimum and maximum ages below and above which the insurer will not accept applications or may not renew insurance cover.
Bodily injury
Bodily injury means bodily injury, sickness ,disease or death at any time resulting therefrom caused due to an accident.
Days of Grace
Insurance premiums are required to be paid on due dates as mentioned in the policy, else the policy lapses. Insurers have the option to allow a Grace period to pay the premium and the payment in this grace period is considered to be payment on time. If the premium is not paid within the Grace period then the policy lapses.
Individual Policy
This term is normally used where only an individual in insured in the Insurance Policy/Document. Multiple People are not covered in the policy.
Loss of a Limb
Physical seperation of a hand at or above the wrist or of a foot at or above the ankle.
Occupational Hazard
Hazards that arise out of one's job. Place and/or nature of job effect the employee's health and life of an individual. Higher the hazard , higher is the insurance premium.
Permant Partial Disablement
An accident which continuously disables the passenger/insured partially eg. Loss of toe or finger.
Policy Lapse
If the insurance premium is not paid even within the Grace Period mentioned in the policy, then the policy comes to an end. This termination of policy is called policy lapse.
Temporary Total Disablement
An accident which disables the passenger/insured totally but a temporary period only. An individual is temporarily disabled from attending business or occupation of any or every kind.
Total loss of Sight
Loss of sight which is certified as being entire and irrecoverable by a licensed opthalmologist.
Workman's compensation insurance
Also called Employer's legal liability insurance. It relates to employer's legal liability towards his employees for death or bodily injury while performing office duty.
Rental - Aircraft
Rental Aircraft in terms of insurance refers to an aircraft given on rent, lease, charter or hire by the original insured to any person /organisation for Private Pleasure and Business uses only and the aircraft is not under the control of the insured. It doesn't include aircraft's used for special purpose.
Generic related Terms (32)
Add on covers
These insurance covers help the insured to get an additional coverage in the original insurance policy/document by payment of extra - premium. The insured has the option to buy any or all of the add ons available in the insurance product depending on the risk that they want to be covered for. However, granting add - on covers is at the sole descretion of the insurer.
Aircraft Damage
This term when used in Fire & Special Perils Policy issued in India. It refers to any loss caused by Aircraft, Aerial or space devices and articles dropped therefrom excluding those caused by pressure waves.
Adjustable Premium
An estimate is made at the outset used for calculating a deposit premium. This is a mode of paying insurance premium. The insured deposits minimum( an on account) premium with the Insurer at the start of the contract (or in installments). On expiry of the policy the insured will declare the total amount of turnover during the policy. The insurer in turn would calculate the earned premium at the rates set out in the policy schedule. If the earned premium so calculated exceeds the minimum premium the insured shall pay the insurers the difference. If the earned premium so calculated is less than the minimum premium then no premium shall be returned to the insured.
An event or occurrence causing damage, injury to an human life or property,caused by external and violent means. An Accident is unforeseen and unintended.
Actuaries work for the insurance company . They apply mathematical & statistical methods to assess the risks. They analyse,evaluate likelihood of future losses/ design ways & methods to reduce the likelihood of undesirable event/ decrease the impact of losses that occur/ determine rates & rating methods etc.
They work as an insurance distribution Channel between the Buyers & Sellers of Insurance and work for & on behalf of both the parties. They are the advisor's and negotiators on behalf of the buyer and render Pre and Post Insurance Services to both the parties.
Any One Accident (A.O.A)
A.O.A is the term used in liability insurance in India. It specifies the maximum amount that can be claimed by the insured for any one accident during the Policy/Certificate period.
Any One Year (A.O.Y)
A.O.Y is the term used in liability insurance in India. It specifies the maximum amount that can be claimed by the insured in a year during the Policy/Certificate perid. The ratio of A.O.A : A.O.Y may be 1:1/1:2/1:3/1:4. s
Balance Premium
Balance Premium = Earned Premium less Minimum Premium.
Broad Named Insurance
Endorsement generally taken by large corporations in the Liability insurance cover. It insures the current and new entities acquired by the Corporate alongwith it (named insured i.e. the Corporate). Entities which can be covered by the Corporate are it's : Subsidiary; Affiliate; Associate;Controlled or Allied companies, Corporations, present & future firms for which the Corporate is responsible to buy insurance and for which similar specified coverage is not available otherwise.
Consultants - Insurance & Risk Management
Consultants with reference to Insurance Sector, render Professional Services viz. Risk Analysis, Risk Management, etc. to the Proposed Insured.
Contribution clause
There might be a situation where more than 01 policy is in force at the time of loss. Contribution clause gives the right to an insurer to call upon others similarly, but not necessarily equally liable to the same insured to share the cost of an indemnity payment. If an insurer has paid full indemnity, he can recoup an equitable proportion from the other insurers of the risk. If, the insured has not been fully indemnified, then he can claim it from other insurers propotionately. This clause enables the total claim to be shared propotionately amongst all the insurers(who have insured the common interest, covering common peril, having common subject matter).
Exclusions are some of the conditions which are not covered in the insurance Policy/Certificate.
Liability Insurance
The purpose of this insurance is to provide indemnity in respect of damages payable under law for personal injury to 03rd parties or damage to their property. The Legal liability may arise under common law on basis of negligence or under Statutory law (eg. In India - Public Liability Insurance Act or Workman's Compensation Act )on 'no-fault' basis i.e. even when there is no negligence.
Loss or damage at other premises
It refers continuity of insurance to the insured property, if it is removed to any building or place other than the premises mentioned in the Policy/Certificate.
Malicious damage
Deliberate damage to insured Property by wrongful act of any person.
Moral Hazard
Any insurance taken without a genuine need and with an intention to take undue advance through insurance is a moral hazard. It cannot be measured.
Own Damage Property
It refers to damage caused to the insured's own property by natural disaster/accident.
Post insurance
Stage after the insurance Policy/Certificate has been issued eg. Endorsement or Claim stage of the insured Property/Life.
Pre insurance
Initial Stage at which the Proposed insured places his insurance requirement to the Insurer.
Property Damage
Property Damage refers to physical loss of or damage to or destruction of tangible property, including resultant loss of use of such property.The damage can be of 2 types : (1) Own Property Damage-Damage to own property by natural disaster or caused by somebody else. (2) Property Damage(3rd party)-Damage done by the insured or insured's property to somebody else's (also called 3rd party)property.
Property Damage-3rd party
Property Damage refers to physical loss of or damage to or destruction of tangible property, including resultant loss of use of such property. It refers to damage caused to the property of others as a result of an accident by the insured. Property Damage cover is like Third party liability which is mandatory in most of the countries.
Riot,Strike & Malicious Damage
Any physical damage/destruction by external violent means directly caused due to Riot , Strike or Malicious Damage.
Risk Evaluation
Evaluation of the value at which the proposed risk is to be insured.
Special Contingency Insurance
This is tailor made insurance to cover the desired /varied business risks of the insured in Single Policy. Business having financial interest in something can always be protected by preparing Special Contingency Policies covering the insured either as the main insured or as an additional insured provided the insurance company agrees to protect that risk and the governing laws allow to do so.
Spontaneous Combustion
Spontaneous Combustion is due to burning as a result of internal heating. Generally occurs in commodities like groundnuts, dyes, chemicals, paints &varnish, gunnies, hay & grass, copra cake etc.
Usually there is a policy condition which authorises the insurer of all the legal rights against a third party, after he has indemnified the insured. When a different party is the cause of loss, the insurer after paying claim to the insured, gets the insured's rights and remedies to mitigate the loss from the 3rd party. This right arises once the insurers have paid the claim. Problems may arise because the insurer may not have complete control from the date of loss. In order to ensure control of the situation, insurers place a condition in the policy giving themselves subrogation rights before the claim is paid. However, this amount cannot be recovered from the 3rd party before he has paid the same to his insured.
Terrorism Cover
This cover is optional and the insurance seeker must categorically ask for this cover if required. It covers loss, damage or expenses directly or indirectly incurred by any act of terrorism.
Third Party Administrators
Third Party Administrators commonly known as TPA's render Medical claim related services on behalf of the insurer.
Underwriters work for the insurance company. They are involved in the process of selecting the risks which the insurance company is willing to accept at a specified premium.
Waiver of Liability
Waiver of Liability clause or any similar document if, signed by the insured either before or during the currency of the policy, bars the insurer from relying on the Doctrine of Subrogation. The insured must disclose /submit any such agreements entered by him to the insurer.
Wrongful act
With reference to Directors & officer's liability insurance the Wrongful act is defined as actual or alleged breach of duty, breach of trust, negligence, error, omission, mis-statement, misleading statement & similar acts in the capacity of director/officer.
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