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Q
RESIDENTIAL RISKS
Means the private house or its contents that are insured. Common terms used by insurers include
"Householders", "Homeowners" and "Coverall". Beware of the words "All Inclusive" or
"comprehensive" that are often used in connection with these terms, there is no such thing as an insurance policy that
can cover every eventuality. Nevertheless, locally available policies do offer wide cover.
RISK ANALYSIS
This is another term for Risk Management.
RISK MANAGEMENT
Do not confuse this with insurance. It is the process whereby you assess all
of the possible events that could interfere with your business objectives. Having identified them a plan
should be conceived to deal with each. This is a complex process on which we can advise you.
SCHEDULE
Part of your policy that groups the relevant information to your risk, who and what is covered and for what period.
SCHEMES
These are special arrangements for groups of people that usually provide preferential terms.
They exist for life, health and motor risks and also for certain trade groupings.
STOCK
May be defined on the policy but the customer is always able to adopt a description that fits a particular business.
SUBROGATION
This is a legal principle that does not affect the
customer directly. It enables your insurer, once a claim has been
settled to pursue recovery against anyone responsible, for example a
negligent motorist who damaged your vehicle. Such a recovery helps to
keep net claims costs and eventually premiums to a minimum.
SUBSIDENCE, HEAVE AND LANDSLIP
An upward, downward or lateral movement of land which causes damage
to property, not normally covered on commercial property insurance,
but may be offered by some household insurers. Insurers will have
areas where, nevertheless, they are not willing to give cover because of regular incidents.
THEFT
Means taking the property of someone else without any intention of returning it.
On a property insurance policy there is normally a requirement for the act to follow
violent and forcible entry to or exit from your premises. Motor policies will
cover this risk but may have conditions as to the security of your vehicle.
UNDER-INSURANCE CLAUSE
Also known as the "Average" clause. Because property
insurance rating is based on the assumption that everyone insures the
full value at risk, insurers take precautions to penalize those that do
not do so and who do not contribute their fair share to the insurance
claims fund. Remember, this fund is merely the total of all premiums
that customers pay. Where you under-insure your property, any claim
will be reduced by the same percentage as your amount insured bears to
the actual value.
UNDERWRITING
This is the process whereby Insurers decide whether to accept your risk and what
price to charge. You are normally asked to help them in this process by completing a proposal form that
groups together the relevant information about you and what you are insuring.
UTMOST GOOD FAITH
Because the customer knows more about the risk he is insuring than
the Insurers the Law requires that "utmost good faith" is observed.
This means that you must tell the insurers everything about your risk
that would affect their judgment in deciding whether to insure you or not
and at what cost. If you conceal such a fact that is material your insurance
will be invalid. When you are insuring we will help you to complete any necessary
forms and discuss your situation with you. In the end it is better to
disclose everything, whether or not you feel it is material and let your insurers decide.
V
WARRANTY
This term has a special meaning on insurance policies. The
insurers will either require you to do or not to do something
that effects the risk. For example, not to use certain flammable
liquids in a process or to remove waste from a factory daily. Any
failure to observe a warranty will invalidate your insurance. We
will draw any such requirements to your attention
when handling your insurances and check at each renewal that
the circumstances are unchanged.
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