Dictionary / Glossary on Car Insurance

Below are terms frequently used in the world of Car Insurance:

ADJUSTABLE PREMIUM = Right Insurance Company to change the premium rates charged to the Insured, for example as a condition of renewal of insurance contracts.

Additional insured = That's not who got the original insured insurance protection against loss under the terms and conditions of the existing policy.
Annuitant = Policyholders who are entitled to receive benefits from the insurance company for a certain period.

APPRAISAL = Estimated quantity, quality and value. Through this way to be insured value of property determined.

Comprehensive / ALL RISK (Losses Combined)
Provide a guarantee of:
1. Loss / damage of uninsured motor vehicles because of collisions, collision, overturned, skidded off the road.
2. Financial loss / damage to motor vehicles because of the evil deeds of people except by their own families / people who work with the insured or the insured's permission to bring such vehicles.
3. Fires caused by fire that comes from within and from outside the vehicle.
4. Theft, including theft carried out with violence.
5. Lightning strikes.
= Increase in the exchange rate appreciation of the property caused by certain factors (eg economic) which may be temporary or permanent nature.

DANGER (Perils) is an event that may occur. Source of danger is basically derived from three things:
a. Nature, for example: natural disasters such as earthquakes, floods, etc..
b. Humans, for example: Negligence, crimes such as theft, robbery, etc..
c. Equipment / property, for example: a car accident, short-circuit, stove exploding, etc..

FLOOD / STORM / EARTHQUAKE
Provide a guarantee of: financial loss / damage on the vehicle due to geological and Meteorology events such as earthquakes, volcanic eruptions, typhoons, hurricanes, typhoons, landslides, floods.

Contribution
You can only insure the same property on several insurance companies. But if there is loss of the insured object then automatically applies the principle of contribution. The principle contribution means that if we had paid the full compensation you deserve, then we are entitled to sue other companies are involved in some type of coverage (jointly the insurance cover your possessions) to pay the damages in the amount of each comparable with total coverage of the closing.

Depreciation = Missing or reduction in value or difference value of an object at different times.
Deductible (Own Risk / OR or commonly called Your Own Risk):
Is the first of a number of so many dollars a claim that is not covered by the policy. Its function: to avoid small claims and that the insured would pay attention to loss prevention as well as to reduce the losses suffered by the Insurer.

PRICE COVERAGE function as:
1. The limit value of the insurer's responsibility, meaning Indemnity given by the Insurer dalah highest price for such coverage. The phrase "highest" is important to understand and it implies that the replacement of the Insurer could be lower than that value. The occurrence of lower replacement vehicle if the market price is lower than Price Assured.
2. The basis for determining the presence or absence of "average" if there is a claim
3. The basis for calculating premiums. (Price Assured x Rate = PREMIUM). Premium amount will be adequate in accordance with the magnitude of the risks faced when Price Assured truly representative of or equal to the value at risk (var); or in other words the risk is fully insured.

Hazard is a condition or nature, whether physical tangible (physical hazards) as well as a tangible behavior, character and human nature (moral hazards) that affect the likelihood of danger.
Examples of physical hazards:
1. Fire insurance
 - Installation of electricity which is not good
 - Storage of flammable materials
2. Motor vehicle insurance
 - High traffic density
 - Use of vehicles for taxi

Examples of moral hazards:
1. Insured
 - Lack of initiative to reduce losses
 - The nature of the hot-tempered, drunkard, etc.
2. Employers and employees
 - Poor relations between employers and employees
 - The employer is paying less attention to workplace conditions

RIOT is a condition in a city where a large number of mass together or in small groups create an atmosphere of order and public safety problems with noise and the use of violence as well as a series of large amounts of property destruction, insomuch that arise public fear, which is characterized by cessation of more than half of the normal activities of trade center / mall or the office or school or public transportation in the city for at least 24 (twenty four) hours continuously starting before, during or after the incident.

Indemnity (Indemnity)

If the object is affected, causing insured losses then we will reimburse you to restore your financial position after the loss to be the same as immediately before the loss. Thus you are not entitled to damages greater than the harm you suffered.

 Insurable interest:
You are said to have an insurable interest in the object if you suffer financial losses in case of disasters that cause harm or damage to the object. Financial interests allows you insure your property or interests.

In the event of disaster for the insured object and proved that you do not have a financial interest in the object, then you are not entitled to receive compensation.

INVASION is an act of military forces of a country entering the territory of another country with the intention of occupying or hang a temporary or permanent.