Event resulting in a loss (claim) which is not deliberately
caused by the policy holder or is not an inevitable
consequence of some other action of the policy holder.
Act of God
Natural occurrence outside human control such as
earthquake, volcanic eruption, flood or typhoon. These
occurrences may be specifically included in most insurance
policies with a premium.
These are costs incurred by the insurer to
write business such as intermediaries' commissions,
underwriting and issuance of policy expenses.
These are provisions that can widen the scope
of basic insurance policies, for example, Fire policies,
which often restrict coverage to a limited range of
perils, such as fire, lightning and explosion. The additional
peril provisions are sometimes called Special Perils
and may include, for example, losses caused by riot,
strike or damage by impact of vehicle.
An independent person/company who sells and
service insurance policies on behalf of the insurer.
An 'Additional Peril' under a Fire policy,
covers not only the unlikely prospect of a plane crashing
into your building, but damage caused by articles falling
or dropping there from.
This refers to policies which provide wide
cover, however, contrary to the term, they are not in
fact “all” risks as exclusions will always
be specified in an All Risk policy.
All Risks Coverage
A term generally reserved for reference to valuable
items such as jewelry, artifact to insure against fire,
lightning, theft accidental damage and named perils.
This clause is found in the Conditions of many
contract of Indemnity policies. Any difficulty that
the insurer and insured may have in agreeing on the
amount of a claim can be referred to independent arbitrators
rather than going through the Courts.
In insurance 'average'
has several meanings, depending upon the context in
which the word is used. In the case of property loss,
if a policy is said to be 'subject to average', it means
that if the sum insured at the time of the loss is less
than the actual value of the property, then the amount
of loss claimable under the policy will be reduced in
proportion to the extent to which you have under-insured
the value of the property concerned. In Marine insurance,
however, 'average' means loss, which 'particular average'
means partial loss.