Insurance glossary
deductible, limit, underwriting, subrogation, sum insured — terms in plain words
Insurance glossary
Deductible:
Amount you pay yourself per claim; conditional (not paid if damage exceeds it) vs unconditional (always).
Sum insured:
Maximum the insurer can pay — not to be confused with insured value (real property price).
Sublimit:
A cap inside the sum insured — e.g., up to 10k for medication within a 1M policy limit.
Underwriting:
Insurer's risk assessment before signing — determines tariff and terms.
Subrogation:
Insurer's right to recover the payout from the culprit (paid you — sues whoever crashed the car).
Insured event:
A contract-covered event giving payout rights — must be documented.
Direct settlement:
Your insurer pays you directly in a liability claim, not the culprit's insurer — faster.
Aggregate limit:
Limit for all claims in a policy year, not per claim.
Exclusions:
Events the policy does not cover — the most important contract section.
Honesty declaration:
Your answers in the application; an error/concealment = payout refusal.