Motor Insurance Glossary
Policy
A legally binding contract of agreement between the Insurer and the Insured. A policy grants the Insured insurance protection as per mutually agreed-upon limits set by the Insurer.
The Insurer
The company that provides the policy, granting insurance protection for a premium payable by the car owner.
The Insured
Also known as the Policyholder; the person directly taking out the policy from The Insurer. In the case of car insurance, the label can apply to either the car owner or the actual car named in the policy.
Claim Amount
The monetary amount of the Claim, the limits of which are specified in the insurance policy.The Claim Amount is determined depending on the extent of the damage the Insured needs monetary assistance for.
Premium
The payment The Insured pays to The Insurer in exchange for insurance, granted in the form of a Policy.
Sum Insured
The maximum claim amount the Insured can receive from the Insurer
The Beneficiary
The person who stands to benefit directly from the policy by receiving a claim amount, as per limits specified in the agreement. The Beneficiary is not always the same person as the Insured; the term may also apply to the Third Party involved in an accident.
Deductible
An amount of money the Insured pays out of their own pocket before the Insurer covers their claim. The amount of deductibles may vary according to the policy, and is often inversely proportional to the amount of the premium.
