Jargon explained - D

  • Definition
    Damage caused to the policyholder's property.

    Explanation
    Used when talking about types of insurance cover.

    Typical examples of accidental damage include things like spilling paint on a carpet, or damage to a car following an accidental collision.

    This term is most commonly used in household or motor policies. 

  • Definition
    This is when a member wants to add a family member to their plan.

    Explanation
    Used when talking about medical insurance.   The terms and conditions of a policy will explain more about who counts as a family member (or dependent). Normally, this will be a partner or a spouse, and any unmarried children (including adopted and step-children).

  • Definition
    Money awarded by a court as compensation for a loss.

    Explanation
    Used when talking about insurance claims settlements.

    Damages, compensation and awards are often used interchangeably to mean the same thing.

  • Definition
    Defined by the Association of British Insurers (ABI) as a patient who is admitted to a hospital or day-patient unit because they need a period of medically supervised recovery but does not occupy a bed overnight.

    Explanation
    Used when talking about patients and medical treatment.

    Also see in-patient and out-patient.

  • Definition
    A fact that is not legally recognised.

    De Facto describes something that is widely recognised as being true, but which may not necessarily be defined in law or as part of a written constitution.

    Explanation
    Used when talking about terrorism insurance covers.

    Many country borders around the world are De Facto because they exist but have not been formally recognised by the states that they divide.

    The opposite of De Facto is De Jure. 

  • Definition
    A fact that is legally recognised.

    Explanation
    Used when talking about terrorism insurance covers.

    De Jure describes something that is established in law.

    The opposite of De Jure is De Facto. 

  • Definition
    A policy normally covering Stock in Trade that is designed to give maximum cover yet avoid over insurance and over payment of premium by the Insured.

    Explanation
    Used when considering the amount of exposure (sum insured/limit) under a policy and to ensure an adequate premium is charged under certain Commercial insurance policies.

    Declaration Policies are useful for businesses that have large amounts of stock with values that can fluctuate greatly. Without a declaration policy, the fluctuations in value could mean that the business is either under insured or over insured.

    With a Declaration Policy, the insured normally pays a provisional premium of 75% and the insured has to declare the value of the Stock in Trade at agreed intervals. The premium is then adjusted accordingly.

  • Definition
    Refusal by an insurer to accept or renew a proposal for insurance.

    Explanation
    Used when talking about insurance policies.

    Declinature simply means to decline to offer insurance.
    If declinature takes place, it will be at new business or renewal. 

  • Definition
    The first part of a claim payment that is deducted from a claim by the insurer. The effect of this is that the policyholder pays the first part of the claim themselves.

    Explanation
    Used when considering the extent of cover under an insurance policy.

    Deductible operates similarly to an excess, the term Deductible is normally used only where the amount involved is relatively large, and is taken voluntarily in return for a premium discount.

  • Definition
    A Defined Peril has a specific definition in the insurance policy wording.

    Explanation
    Used when considering the scope of cover under an insurance policy wording.

    Defined Perils include fire, flood, explosion and lightning, aircraft, malicious damage, riot, storm, escape of water and impact damage.

  • Definition
    A deposit amount paid towards an insurance premium at the start of a policy.

    Explanation
    Used when considering insurance policy premiums and risk details available.

    An insurer may allow a policyholder to pay a Deposit Premium while the full risk is being assessed so that cover can start. The premium may be adjusted later.  Deposit Premiums are most common for large commercial risks that cannot be assessed quickly and when cover is needed immediately.

  • Definition
    An instruction to a bank or building society to allow payments from an account.

    Explanation
    Used when talking about ways of paying for insurance.

  • Definition
    A directory that lists the hospitals covered by an AXA PPP healthcare private medical insurance policy.

    Explanation
    Used when talking about medical insurance.

    AXA provides members with access to a national network of hospitals, day patient units, scanning centres and other private healthcare facilities. These facilities are selected based on medical advice to provide members with quality, value, and a wide range of services.

    Depending on their level of cover, some members may be able to use hospitals and facilities not listed in the DoH. 

  • Definition
    A common law duty for an insurance proposer to disclose to the insurer any fact that would influence the insurer in.

    Explanation
    Used when talking about insur ance contracts.

    Failure to disclose information could mean that the insurance does not apply and may be cancelled by the insurer.

    Insurers have a similar duty not to withhold information from the proposer.