Insurance terminology made simple

Like most industries, the insurance world has its own language and sometimes uses confusing jargon. The following list explains some of the most commonly used terms that you may come across in insurance documents.

Approved Repairer

A garage selected by your insurance company to carry out repairs to a high standard. Eucover uses a carefully selected network of Repairers and using them gives you a number of benefits, such as a free courtesy car and convenient collection and delivery of your car.

Accident Statement

The European Accident Statement (Europees Schadeformulier) should be kept in your car and in the case of an accident; the parties involved should complete and sign the statement together. A correctly completed statement will ensure that all information necessary to process your claim is provided.

Additional Premium

A further premium payable by the insured as a result of a policy change, that may have increased the risk, for example,  when you buy a new car, or if you buy more cover.

Bonus Malus

Bonus Malus years are earned by you for a policy held in your own name, at the rate of one year of Bonus Malus for each claim free year.   If you make a claim, some bonus malus years will be lost and you will step back to a lower level of bonus malus.

Bonus Malus Protection

Some insurers, including eUcover, offer Protected Bonus Malus Cover. This means you can make a specified number of claims over a stated period of time without your Bonus Malus discount being reduced.

If you buy Bonus Malus Protection as a part of your cover with eUcover, you can make two claims in any three year period without your Bonus Malus grade being affected.  

Claims Adjuster

An adjuster investigates and assesses claims on behalf of the insurer. In the case of eUcover, we use Nobilas to handle your claims on our behalf.

Cooling off Period

A policy may be cancelled (in writing) during this period and the insurance is considered never to have been in effect. With eUcover you have a 14 day cooling off period from receipt of the first International Motor Insurance Card (Green Card).

You are entitled to a full refund of any premium paid provided that you have not made a claim, or an accident or loss has not happened.

Cancellation

The termination of an insurance policy before it is due to expire. There may be a period of notice required. Details of eUcover cancellation terms and conditions can be found in our policy wording document on the website.

Duty to Minimise Loss

In the event of a claim you must do everything possible to restrict the damage and in particular to avoid any subsequent damage.

Excess

Excess is the amount of money that you pay in the event of a claim. By choosing to have an additional voluntary excess with eUcover, you will benefit from a lower premium.

Standard excesses differ across the various insurers, and additional young driver excesses normally apply.

Exclusion

An event or item that is not covered by the insurance.

Expiry Date

The time and date on which the insurance cover ceases.

Fault

The terms fault and non-fault can be confusing.

A non-fault claim is simply a claim where the insurer is able to recover all their costs from someone else. If they are not able to recover all their costs, then it is a fault claim - even if you didn't cause the accident to happen.

For example, a theft is typically classed as a fault claim. This is because even though you are probably not to blame for the theft, there is no one else to pay the costs so the insurance company treats it as a fault claim.

Insurer

The insurance company.

Insurable Interest

This applies to ownership of the insured property. For example, a finance company may have an insurable interest in a car if they helped pay for the purchase.

Loss

This is another term for a claim.

Material Fact

Any information that may influence either an insurer’s decision to offer you cover or the premium they charge for it. If you do not disclose a material fact, your policy may be invalidated and you may not be covered. At eUcover we also need to know about important changes to your existing policy e.g. a new car; otherwise you may not be covered.

Policy

The document that describes the cover provided by the insurer. You can view eUcover’s policy document on our website.

Statement of Fact

A statement provided by the insurer describing the basis on which insurance is accepted and what information you have told us.

eUcover will issue you with a Statement of Fact  when you take out a policy with us. It is important to check that the statement is accurate.

Third Party Cover

If you purchase Third Party only cover, the insurance meets the requirements of Wet Aansprakelijkheidsvezekering Motorrijtuigen. It covers your responsibility to any other person or property involved in an accident with your car.

It does not cover any damage to your own car, or its theft etc.

To get wider cover, you can buy Limited Comprehensive (Deperkt Casco) which is Third Party (as above), plus damage to your car caused by theft, wild animals etc.
The best cover is provided by Full Comprehensive (Volledig Casco) which is Third Party (as above), plus damage to your car caused by most situations.  For example, even if the accident is your fault, Full Comprehensive cover will pay for repairs.

Underwriter

A person who accepts business on behalf of an insurer