At Almi, we love making your life easier. That’s why we put together this Insurance Dictionary to help you understand your insurance quote and policy better.
Bajans often note how complicated insurance can be, so here we’ll break down most insurance terms and jargon.
Appraisal
An appraisal is an estimate of value of an item or cost of repairs. At Almi, this means that we are evaluating damages to your home or vehicle to determine the cost of repair or replacement.
Accidental damage
This is damage caused by violent and external means (including a storm, flood, hurricane, earthquake, riot and strike).
At fault
If you are deemed to be at-fault, it means you have been evaluated as legally liable for the cause of an accident.
Broker
An intermediary that sells insurance on behalf of different insurance companies.
Certificate of insurance
Also known as Insurance Certificate, this a current and valid document that certifies that the holder is protected by an insurance policy. The Certificate of Insurance is different from the insurance policy. The Certificate is the document that you may need to produce to the police as evidence of you insurance policy.
Claim
An insurance claim is a request made by the policyholder (that’s you!) for the insurer (that’s us) to cover expenses related to an accident or incident.
Claims officer
An individual employed by the insurance company who is specialized and responsible for handling insurance claims.
Claims officer
An individual employed by the insurance company who is specialized and responsible for handling insurance claims.
Claims process
This is the process from the point where you file a claim until the insurance company arrives at a determination of who is legally liable for the cause of the accident and proceeds to settle the claim or not.
Comprehensive coverage
A comprehensive insurance policy covers your own loss and damage as well as the loss and damage of any others involved in an accident where you are at -fault.
Comprehensive lite
A comprehensive insurance policy covers your own loss and damage as well as the loss and damage of any others involved in an accident where you are at fault. It excludes coverage when driving a rented or loan vehicle.
Compulsory excess
Also known as deductible, this is the amount you’ll have to pay out-of-pocket in order to file a claim. For the compulsory excess, the insurance provider sets the amount and it is is non-negotiable. This is different from voluntary excess, which is the amount you choose to pay in addition to the compulsory excess.
Deductible
Also known as “excess”. This is the amount you’ll have to pay out-of-pocket in the event of a claim. For example, If the total claim amount is $10,000 and your deductible, or excess, is $2,000., your insurance company will pay $8,000 and you will pay $2,000.
Driving license
This is also known as driver’s license or driving permit. It’s an official document issued by the Barbados Transport Authority that certifies that you are capable of driving a motor vehicle.
Excess
See: Deductible.
Indemnity
Indemnity is a broad legal term that refers to the obligation of one party to compensate the other party in the the event of a loss or other trigger event. In insurance, it’s the policy that would compensate you in case of an accident.
Insurance
It’s the promise of payment by an insurance provider to an individual in case of an event that generates a loss. This event could be sickness, death, property damage or loss.
Insured
This is you! The holder of an insurance policy that promises to compensate you in case of property damage (home or motor), sickness or death.
Insurer
This is the company that is responsible for the insurance policy. It is also know as the underwriter or simply the insurance company. A broker is not an insurer since the broker is simply a middleman.
Letter of settlement
This is the document provided by the insurance company once a claim has been settled. It stipulates the general situation leading to the claim and amount to be covered. If you’ve never made an insurance claim, you can skip this one.
Letter of settlement
This is the document provided by the insurance company once a claim has been settled. It stipulates the general situation leading to the claim and amount to be covered. If you’ve never made an insurance claim, you can skip this one.
No claims discount
A no claims discount, also known as a no claims bonus, is the discount you’ll receive on your premium if you don’t make a claim at the end or your insurance period, which is usually a year. The discount is applied every year upon renewal.
No claims letter
This is a letter produced by your current or previous insurance company stating the dates of any insurance claims made, if any. This letter might be requested by your new insurance company and if no claims were made, you could be eligible for a discount.
Not at fault
In the case of an accident, this means you were not deemed responsible.
Premium
An insurance premium is the amount that the customer pays to the insurance provider to be protected by a policy. A premium is usually a yearly amount that can be paid in instalments depending on the option offered by the insurance provider..
Roadside assistance
A service offered by the insurance company to assist policy holders in the event of an accident or collision.
Term length
This is the amount of time covered by the insurance policy. One year is the standard term length.
Third party coverage
Third-party insurance covers the loss, damage, injury or death caused to others or their property when involved in an accident where you were at-fault.
Vehicle valuation certificate
A document proving the value of the vehicle. This certificate is usually provided by a garage. Read our vehicle valuation guide for complete information.
Voluntary excess
This is the amount you choose to pay out-of-pocket in the event of a claim. This amount is agreed upon when the policy is purchased, with the intent of lowering your total premium amount. See “excess” or “deductible” for more information.
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