Terms and definitions

Insurance

Mechanism of contractually shifting burdens of pure risks by pooling them. The insurer indemnifies the insured against loss or damage.

Insurer

An insurance company that accepts insurance contracts directly from the insured.

Insured

A natural or juristic person who has entered into an insurance contract.

Beneficiary

A natural or juristic person to whom the benefit(s) under the insurance policy is given when losses or damages occur.

Reinsurer

An insurance or reinsurance company that accepts insurance contracts from another insurer.

Reinsurance

Transferring the insured’s risk from the insurer to the reinsurer and to indemnify the insurer by the reinsurer for any payments made to the insured against damages or loss.

Facultative Reinsurance

The insurer presents each insurance risk separately to the reinsurer, and the reinsurer has the option to accept or neglect the offered risks.

Self-Insurance

Maintaining a fund to cover possible losses rather than transferring the risk by purchasing an insurance policy.

Insurance Agency

A juristic person who represents, for a charge, the company to solicit, procures and negotiates Insurer contracts. All activities of the insurance agency are usually performed for the company or in its behalf.

Insurance Supervisor

A government agency or public institution responsible for the supervision and control of the insurance sector.

Insurance Brokerage

A legal person that negotiates, for a charge, with an insurance company to obtain insurance for the insured.

Insurance Advisor

A natural or juristic person who provides insurance consultative services.

Insurance Policy

Contract issued to the insured by the insurer setting out the terms of the contract to indemnify the insured for loss and damages covered by the policy against a premium paid by the insured.

Compulsory Insurance Policy (The Policy)

Motor third party liability insurance policy under which the insurer undertakes to indemnify the third party upon the occurrence of a loss covered under the policy, for a premium paid by the insured. This policy shall include the promissory warranty certificates and appendices (if any) provided that they shall not contradict or violate the provisions stated in this policy.

Premium

Amount paid by the insured to the company for its agreement to indemnify the third party for damage or loss whose direct cause is a risk covered under this policy.

Claim

Written notification submitted to the company requesting indemnity for an accident covered under the provisions of this policy.

Claimant

Natural or juristic person who is harmed due to an accident covered under this policy, including the heirs of the natural person in the event of his death.

Insurance Claims Settlement Specialist (Third Party Administrator)

A juristic person who manages, reviews, and settles insurance claims on behalf of the insurance company.

Third Party

Any natural or juristic person who sustains loss covered under the provisions of this policy, excluding the insured and/or the driver.

Risk

Situation involving the chance of loss or no loss, but no chance of gain.

Underwriting

The process of evaluating and accepting of insurance risk.

Indemnity

An amount to be paid by the insurer to a third party within the maximum civil liability specified in the insurance Policy.

Material Damages

Damages to property belonging to the third party.

Physical Damages

Death or physical injuries which may be inflicted on a third party, including total or partial disability, whether permanent or temporary.

Medical Expenses

Costs and expenses of medical treatment and medicines, which are incurred by the third party as a result of an accident covered by insurance under this policy.

Other Expenses

Expenses which are incurred by the third party because of the accident.

Loss Assessor and loss Adjuster

A juristic entity that examines and inspects the insurance risk before it is insured, inspects the damages after they occur to determine the reasons for the loss, assesses the value thereof, and assigns liabilities.