Terms that we will encounter in non-life insurance

  • General insurance conditions

    Generalized conditions for certain types of insurance. This is mainly about the conditions for the creation and termination of the insurance contract, the characteristics of the term insurance event, the conditions under which the insurance compensation will be provided, the conditions and amount of the premium payment, and the like.


Distance insurance terms and conditions


  • Amortization

    Gradual reduction in the value of tangible and intangible assets. Amortization, i.e. wear and tear, can be technical and moral. In the case of technical, it is physical wear and tear or deterioration due to use in operation. Moral wear and tear is always related to technical progress, which causes the production of cheaper and more powerful machines and equipment. Amortization is expressed by depreciation (see time cost). assistance services Assistance provided by the insurance company to its clients in certain types of insurance (mandatory contractual insurance for damage caused by the operation of a motor vehicle, Assist - Card). It is implemented on the basis of agreements with foreign insurance companies or other organizations that provide the client with material or organizational assistance within the agreed conditions.
  • Bonus

    From Latin "good". In practice, it refers to the provision of a credit note to the customer for the fulfillment of specified or agreed conditions. In insurance, this is a discount on the insurance premium (or a discount on the performance of the insurance company) for a favorable claim history. It can be a case of no-fault damage (e.g. accident insurance for motor vehicles), for the use of fire alarm or extinguishing devices, for the complexity of the insurance policy (risk or non-life) and the like.
  • Time price

    The price of the item in the specified period. In insurance, it is mainly the price of the damaged item at the time of the insurance event. It is determined by deducting from the price of a new item an amount representing wear and tear, or other deterioration of the thing. new price The value of a thing that has not been used so far and is not morally worn out, expressed in money. This is the amount of money that the client would have to spend to buy a certain thing at the given time, even for older things. For motor vehicles, it is the price from the invoice. The price of the property is determined from an expert opinion or on the basis of a manual for determining the price of construction objects.
  • Insurance premium owed

    Insurance premiums not paid within the specified or agreed term. During this time, the insurance company covers the client's risks, but the insurance company always additionally recovers this insurance premium from the policyholder. period of validity of the insurance (insurance period) The period for which the insurance was agreed. The start and end date of the insurance must be specified in the insurance contract. Property insurance for citizens is concluded for an indefinite period, while the insurance period is usually one year.
  • Franchise

    From French, it means "exemption from public charges". In the insurance industry, this is an amount (agreed on in the insurance contract) up to the amount for which the insurance company will not provide insurance benefits. The legal order in the Slovak Republic recognizes the franchise as one of the forms of co-participation (conditional co-participation). The deductible is then an agreed amount up to which the insurance company does not provide insurance benefits. If the insurance benefit is higher than the deductible, the insurance company will provide the entire insurance benefit.
  • Inflation

    It reflects the economic imbalance in the economy. Its manifestation is the growth of the price level, not supported by the corresponding production of goods. Since money is not backed by anything, it depreciates. For more money you will buy the same amount of goods as before for less money. In our products, this problem is solved by indexation, that is, by adjusting the property value to inflation.
  • One-time insurance premium

    Insurance premiums paid at once for the entire period of validity of the insurance. It can be short-term (valid for less than one year) or long-term insurance, especially life or pension.
  • Theft

    Appropriation of another's insured thing by overcoming an obstacle
  • Cover sheet

    Written confirmation that the insurance company will fulfill the obligation specified in the cover letter on behalf of its insured (or, according to an agreement with another insurance company, on behalf of its insured). In the given term and scope, he will pay the payment for the insured or injured party to the specified entity (e.g. car repair shop). The cover letter replaces the provision of an advance payment for insurance benefits.
  • Term insurance premium

    Regular insurance premiums paid in certain installments (monthly, quarterly, semi-annually, annually) robbery Appropriation of the insured object by the perpetrator using violence or the threat of immediate violence against the insured.
  • Malus

    From Latin "evil". In the insurance industry, this is the opposite of a bonus, i.e. a surcharge to the specified premium in case of non-fulfillment of the specified conditions for the course of the insurance, or worse than the specified (calculated) risk. Most often, this is a surcharge for an unfavorable claims course in the previous period.
  • Unused premiums

    If the client pays the premium for the entire insurance period, but in the middle of this period sells the insured item (motor vehicle, home, etc.), he is entitled, based on the sales contract, to ask the insurance company for an aliquot part of the insurance premium, which no longer actually covers any risk, since the subject of the insurance disappeared. He is not entitled to it if an insurance event occurred before the sale and the client received compensation for the damage. unknown payments (volatile) Payments that the insurance company received on the account, but due to various errors (in the variable symbol, account number, etc.) were not matched to the contract, and therefore have to be searched manually.
  • Appreciation

    Determining the value or price of an asset, event, phenomenon, measure, etc. In the insurance industry, this mainly concerns the determination of the value of the risk (for determining the premium rate) or the damaged object of the insurance for the purposes of payment of insurance benefits (insurance compensation). The value is determined at the time of occurrence of the insurance event.
  • Underinsurance

    Determining a lower value of the insured item than it actually has. The client must be aware that if he wants to pay for a smaller insurance value, he will receive a lower payment even in liquidation. insurance event A random event that must be specified in the contract, that was not excluded from the contract and for which the policyholder pays the premium. insured Person whose property, life, health or liability for damage is covered by the insurance. insurance Confirmation that the contract has been accepted for insurance. insured value (new price) The price of the insured item on the day the insurance is taken out, which is used to determine the insurance premium Sum insured Sum agreed in PZ (maximum amount of insurance payment). insurance premium Price for provided insurance protection. insurance period Part of the insurance period for which premiums must be paid. insurance payment Insurance payment in non-life insurance will be provided by the insurance company up to the amount of the damage incurred. However, the performance may not exceed the insured amount. insurance proposal Proposal for concluding a non-life insurance contract. By signing the draft contract by the insurance advisor and the client, the draft contract automatically becomes a valid insurance contract. policyholder A person who has concluded an insurance contract with the insurer and is obliged to pay premiums. injured party One who may not be insured himself, but has become a victim of a pest and demands compensation from him. If the injured party is insured, he/she requests the insurance company to pay the damage to the injured party on his/her behalf. local validity. prescribed premiums The main indicator of insurance activity. It expresses all premium items that are to be paid to the insurance company in the given accounting period. pro - rata temporis The method of calculating the premium if the insurance lasts less than one year. first insurance premium Insurance premium for the first insurance period (if it is not paid within three months from the effective date of the contract, the contract is cancelled. With co-payment The amount by which the policyholder participates in the provided service and which is always deducted from this service.
  • Regression

    It represents the recovery of the liability (which has already been paid to the insured) from the one who intentionally or unintentionally caused the event. This right is transferred to the insurance company on the basis of the concluded insurance contract or legal regulations in the event that insurance compensation has been provided, and only up to its amount.
  • Complicity

    The amount of the share by which the insured participates financially in the insurance loss. In the case of insurance with co-payment, the insurance company will reduce each insurance compensation by the agreed amount of co-payment.
  • Total shame

    Complete destruction or extensive damage to the insured item, when the repair costs exceed its time value or the item is so destroyed that its restoration is technically impossible (as well as the theft of a motor vehicle).
  • Vandalism

    Intentional damage or destruction of the insured item.
  • Vinculation

    Limitation of disposition, i.e. tying the use of a deposit, security or other value to agreed conditions. In the insurance industry, it is, for example, the binding of insurance benefits in favor of the bank that granted the insured a loan and the like.
  • General insurance conditions

    Generalized conditions for certain types of insurance. This is mainly about the conditions for the creation and termination of the insurance contract, the characteristics of the term insurance event, the conditions under which the insurance compensation will be provided, the conditions and amount of the premium payment, and the like.
  • Security

    Simply put, it's insurance insurance. In the event of a large risk, the insurance company will divide it among several insurers in the form of reinsurance. One of the insurance methods is that the insurer and the reinsurer participate in the insurance performance in the same proportion as they divided the insurance premium.