Glossary of insurance terms

Understanding the common insurance terms

In order to understand your insurance policy fully it is important to understand the terms so you know exactly what to expect if you need to make a claim. The most common terms used in Towergate insurance policies are explained here.

Accessories - Accessories are the parts of a motor vehicle that have nothing to do with its functioning. Normally accessories are added after the vehicle has been manufactured and include supplementary parts that are fitted such as racking. Radios and audio equipment that have been fitted to the vehicle after manufacture is also included in the term accessories.

Approved Repairers - Approved repairers are those who have been given approval by a specific insurer to make the repairs to damaged vehicles. The processing of a claim should be quicker if you use an approved repairer.

Business - Definition as shown in your statement of insurance cover.

Claims - Claims are formal requests to recover any and all damages incurred by the insured vehicle driver. They must be presented to the insurer for processing along with any other required or requested documentation.

Comprehensive Insurance Cover - Comprehensive insurance cover is designed to protect your loss in a variety of situations. This is the maximum cover available for vehicles. Comprehensive cover provides insurance on a vehicle for loss, theft, damage and liability to any third parties. It includes some of the benefits that are available for a fee to individuals without comprehensive cover such as personal injury cover, medical expenses cover and damages to personal belongings located on a vehicle.

Condition of Vehicle - The driver is required by most insurers to maintain the condition of his vehicle to a road worthy or reasonable standard. A reasonable standard is typically one that places a vehicle in a better condition than a road worthy standard.

Corporate Manslaughter - The corporate manslaughter legislation makes it easier to prosecute organisations and corporate bodies for failures that result in a person's death. No longer do the courts have to prove that any one individual or individuals acted as the controlling mind of the company. In practice the practices and management systems across the organisation will be examined to determine whether failures or deficiencies in these played a contributory role in the death? If the court finds that these policies were inadequate or inappropriate, the company can be convicted of corporate manslaughter.

Data - Information represented or stored electronically including but not limited to code or series of instructions operating system software programs and firmware.

Endorsement - An amendment to Your Portfolio.

Excess - The amount (if any) shown in Your Statement of Cover which You must pay under the Section of Your Portfolio under which You make a claim.

Excluded Initial Period - The period (if any) shown in Your Statement of Cover for which no benefit will be paid in respect of any claim.

Insured Person - A person who is identified in Your Statement of Cover and is covered under the Commercial Vehicle, Goods in Transit, Public/Employers' Liability, Income Protection, Engineering and Legal Expenses Sections of Your Portfolio.

Please Note: For the purposes of the Commercial Vehicle and the Public/Employers' Liability Sections of your portfolio, cover in respect of each insured person shall operate as if they are the only insured person covered by this portfolio, but in the event of any claim involving more than one insured person any limitation in respect of any amounts payable under any section of this portfolio shall apply to the aggregate amounts paid to all insured persons.

Motor Vehicle - The vehicle shown under Description of Vehicle in Your Certificate of Insurance and/or in Your Statement of Cover and in respect of which details have been notified to, and accepted by Us, and including its spare parts and accessories, windscreen and windows. (The word 'vehicle' on its own means any vehicle including the Motor Vehicle).

Period of Insurance - The period starting and ending on those dates shown in the Statement of Cover and Certificate of Insurance.

Portfolio - The document consisting of the Proposal Form, this Portfolio book, the Statement of Cover, Certificate of Insurance and any Endorsements.

Pollution - All pollution or contamination of buildings or other structures or of water or land or the atmosphere.

Principal - Any party to whom you have a legal obligation to provide an indemnity.

Proposal Form - The form signed by You which provides information about You, the property or any other person who is covered under this Portfolio and all material information relevant to the cover which You have requested.

Radioactive Contamination - Is defined as ionising radiations or contamination by radioactive material from any nuclear fuel or from any nuclear waste from the combustion of any nuclear fuel. or the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component of it.

Statement of Cover - The document which identifies you and the details of this portfolio that are specific to you or any other person who is covered under this portfolio, together with details of the insurer.

Sum Insured - The amount for which each type of property is insured as shown in the Statement of Cover or as notified to You at renewal.

System - Computers other computing and electronic equipment linked to computer hardware electronic data processing equipment Microchips and anything which relies on a Microchip for any part of its operation and includes for the avoidance of doubt any computer installation.

Territorial Limits - Great Britain, Northern Ireland, the Republic of Ireland, the Isle of Man, and the Channel Islands, including transit by water, rail or air, directly between any of these territories, provided that transit is by commercial carrier. If the states that insurance is provided by Equity Red Star then the definition of applicable to Section shall read as follows: Great Britain, Northern Ireland, the Isle of Man and the Channel Islands, including transits by water or rail directly between any of these territories, provided that transit is by commercial carrier.

Terrorism - Is defined as any act including but not limited to the use of force or violence or the threat thereof of any person or group of persons whether acting alone or on behalf of or in connection with any other organization or government committed for political, religious, ideological or similar purposes including the intention to influence any government or to put the public or any section of the public in fear.

Telematics - Receiving, storing and sending vehicle data via telecommunication devices such as GPS for the purposes of tracking and vehicle diagnostics.

Theft - Theft, attempted theft, or the taking away of the Motor Vehicle without your consent or the owner's consent.

Third Party - Third Party refers to an individual who is involved in a claim but who is not the insurer or the insured party.

Third Party, Fire and Theft Cover - Third Party, Fire and Theft Cover is designed to protect the insured when accidents involving a third party occur. This cover also protects the insured against damages that have occurred due to fire or the theft of the vehicle.

Trailer(s) - A trailer which is properly constructed to be towed by a Motor Vehicle, which is of a size appropriate for the capacity of the Motor Vehicle and which is used for the carriage of goods. Any plant permanently attached to a trailer shall be regarded as part of that trailer.

UK / United Kingdom - Defined as England, Scotland, Wales, Northern Ireland, the Channel Islands and the Isle of Man.

War - a) War, invasion, act of foreign enemy, hostilities or a warlike operation or operations (whether war be declared or not), civil war, revolution, rebellion, insurrection, civil commotion assuming the proportions of or amounting to an uprising, military or usurped power b) any action taken in controlling, preventing, suppressing or in any way relating to (a) above.

We / Us / Our / Insurer - The Company providing the cover as detailed in your Statement of Cover.

Write off - The term "write off" refers to a vehicle that has been damaged beyond repair as determined by the insurance company.

You / Your / Insured - Whoever is named in the Statement of Cover and the Certificate of Insurance as the insured.