Motor Insurance Glossary

<BODY BGCOLOR="#FFFFCC" LEFTMARGIN="20" TOPMARGIN="20" MARGINWIDTH="20" MARGINHEIGHT="20" TEXT="#000000" LINK="#000080" VLINK="#000080" ALINK="#0000FF"> <P ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"><B>Motor Insurance Glossary</B></FONT></P> <TABLE WIDTH="580" BORDER="0" CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER"> <TR> <TD HEIGHT="42"><FONT FACE="Arial" SIZE="-1"> </FONT> <H1><FONT FACE="Arial" SIZE="-1">Glossary of Terms</FONT></H1><FONT FACE="Arial" SIZE="-1"> </FONT></TD> </TR> <TR VALIGN="top"> <TD HEIGHT="4113"><FONT FACE="Arial" SIZE="-1"> </FONT> <P CLASS="bodytext"><FONT FACE="Arial" SIZE="-1">If you want an explanation of insurance terminology then check out the glossary of insurance terms below. <BR> <BR>Please note that the definitions provided are meant only to be a guide to insurance terminology. Some of the terms used may well have other definitions and different terminology might well be used by other organisations. None of the definitions should be read as providing a complete description of the term to which they apply and readers should seek more detailed information when considering taking any actions in respect of any pensions scheme or insurance arrangement.<BR></FONT></P><FONT FACE="Arial" SIZE="-1"> </FONT> <TABLE WIDTH="580" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER"> <TR> <TD VALIGN="TOP" WIDTH="280"><FONT FACE="Arial" SIZE="-1"> </FONT> <UL> <LI><FONT FACE="Arial" SIZE="-1"> <A HREF="#n1" CLASS="normal">Access To Medical Records Act 1988 </A> </FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#n2" CLASS="normal">Accidental Death Benefit </A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#n3" CLASS="normal">Accidental Death and Dismemberment </A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#n4" CLASS="normal">Act of God </A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#n5" CLASS="normal">Actively at Work </A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#n6" CLASS="normal">Activities of Daily Living </A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#1" CLASS="normal">Additional Drivers </A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#2" CLASS="normal">Additional Premium</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#3" CLASS="normal">Age of Car Discount</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#4" CLASS="normal">Age of Driver Loads and Discounts</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#5" CLASS="normal">Association of British Insurers (ABI)</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#6" CLASS="normal">Claims Procedure</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#7" CLASS="normal">Commercial Travelling</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#8" CLASS="normal">Comprehensive Cover</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#9" CLASS="normal">Compulsory Excess</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#10" CLASS="normal">Convictions</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#11" CLASS="normal">Cover</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#12" CLASS="normal">Cover Notes</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#13" CLASS="normal">Credit Card Payments</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#14" CLASS="normal">Debit Card Payments</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#15" CLASS="normal">Direct Debits</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#16" CLASS="normal">Discounts</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#17" CLASS="normal">Endorsements</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#18" CLASS="normal">Excess</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#19" CLASS="normal">Fees</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#20" CLASS="normal">Foreign Use</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#21" CLASS="normal">Green Cards</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#22" CLASS="normal">High Value Loading</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#23" CLASS="normal">Insurance Ombudsman</A></FONT></LI> </UL></TD> <TD WIDTH="20"><FONT FACE="Arial" SIZE="-1"> </FONT></TD> <TD VALIGN="TOP" WIDTH="280"><FONT FACE="Arial" SIZE="-1"> </FONT> <UL> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#24" CLASS="normal">Insurance Premium Tax (IPT)</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#25" CLASS="normal">Insured</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#26" CLASS="normal">Insurers</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#27" CLASS="normal">Left Hand Drive Vehicles</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#28" CLASS="normal">Legal Expenses Insurance</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#29" CLASS="normal">Loads</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#30" CLASS="normal">Material Facts</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#31" CLASS="normal">Modified Vehicles</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#32" CLASS="normal">No Claims Discount (NCD)</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#33" CLASS="normal">Overnight Theft Loading</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#34" CLASS="normal">Physical Disabilities</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#35" CLASS="normal">Policy</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#36" CLASS="normal">Premium</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#37" CLASS="normal">Proposer</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#38" CLASS="normal">Proposal Form</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#39" CLASS="normal">Protected No Claims Discount</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#40" CLASS="normal">Return Premium</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#41" CLASS="normal">Road Traffic Act (RTA)</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#42" CLASS="normal">Third Party</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#43" CLASS="normal">Third Party Fire and Theft Cover</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#44" CLASS="normal">Third Party Only Cover</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#45" CLASS="normal">Voluntary Excess</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#n7" CLASS="normal">Waiver </A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#n8" CLASS="normal">Waiver Of Premium </A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#n9" CLASS="normal">Whole of Life Insurance </A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#n10" CLASS="normal">Will</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#46" CLASS="normal">Windscreen Cover</A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#n11" CLASS="normal">With Profits </A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#n12" CLASS="normal">Without Profits </A></FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"><A HREF="#n13" CLASS="normal">Written Premiums </A></FONT></LI> </UL></TD> </TR> </TABLE><FONT FACE="Arial" SIZE="-1"> </FONT> <DIV ALIGN="left"><FONT FACE="Arial" SIZE="-1"> </FONT> <DIV ALIGN="left"><FONT FACE="Arial" SIZE="-1"> </FONT> <P><FONT FACE="Arial" SIZE="-1"> <B><A NAME="n1"></A><SPAN CLASS="bodytext">Access To Medical Records Act 1988 <BR> </SPAN></B><SPAN CLASS="bodytext">The terms of this Act require an insurance company to obtain prior written consent from an individual before approaching any medical practitioner for a medical report pertaining to them. The individual has certain other rights including the right (subject to some restrictions) to see any report before it is submitted by the doctor <A HREF="#top" CLASS="normal">Back to top</A><BR><B><BR> <A NAME="n2"></A>Accidental Death Benefit <BR> </B>A provision that may be added to a life insurance policy which provides payment of an additional benefit in the case of death resulting from an accident. <A HREF="#top" CLASS="normal">Back to top</A><BR><B><BR> <A NAME="n3"></A>Accidental Death and Dismemberment <BR> </B>Loss of life or limbs through accident. Insurance against such eventualities is generally available. <A HREF="#top" CLASS="normal">Back to top</A><BR><B><BR> <A NAME="n4"></A>Act of God <BR> </B>An accident or event which happens independently of human intervention and due to natural causes such as storm earthquake etc which no human foresight can provide against. Suggesting that an event was an "act of God" may be a defence in English law against a claim for liability since it may be held that it could not have been foreseen or safeguarded against. <A HREF="#top" CLASS="normal">Back to top</A><BR><B><BR> <A NAME="n5"></A>Actively at Work <BR> </B>A clause in a group insurance policy that requires a new member or one with an increase in cover, to be at work (or on holiday - ie not absent due to sickness, industrial action, etc) on the day of joining/day of increase. <A HREF="#top" CLASS="normal">Back to top</A><BR><B><BR> <A NAME="n6"></A>Activities of Daily Living<BR> </B>Everyday living functions and activities performed by individuals without assistance. These functions include mobility, dressing, personal hygiene and eating. The inability to undertake these activities may be used in some circumstances to define disability in insurance contracts. <A HREF="#top" CLASS="normal">Back to top</A><BR><B><BR> <A NAME="1"></A>Additional Drivers<BR> </B>Additional Premium On a motor insurance policy. This means drivers other than you, the Proposer. (e.g. your husband or wife).<A HREF="#top" CLASS="normal">Back to top</A><BR> <B><BR> <A NAME="2"></A>Additional Premium (AP) <BR> </B>An additional premium is occasionally incurred for changes to an insurance policy. (e.g. you may wish to add young drivers to your policy). <A HREF="#top" CLASS="normal">Back to top</A><BR> <B> <BR> <A NAME="3"></A>Age of Car Discount<BR> </B>On some motor policies a discount on premium is given for older cars. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="4"></A>Age of Driver Loads and Discounts<BR> </B>All motor policies are rated on the age of the youngest driver. With most Insurers the base rates (i.e. the starting point for premiums) are set at 30 years of age. Drivers under 30 attract premium loadings and drivers over 30 attract premium discounts. Loadings may also apply if the driver has held a full UK licence for less than one year. This therefore includes provisional license holders. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="5"></A>Association of British Insurers (ABI)<BR> </B>The association of insurance companies, which operates in Great Britain. The ABI regulate most Insurers and Independent Intermediaries of which your insurance company may be one such independent intermediary. This is also one of the bodies that you may complain to if you are dissatisfied with any product or service offered from this site. This is of course if satisfaction has not been gained from your insurance company first. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="6"></A>Claims Procedure<BR> </B>The procedure to go through when making a claim. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="7"></A>Commercial Travelling<BR> </B>For use in connection with any business or trade that involves buying or selling of any description. For example, a Company Representative, Door-to-door salesperson or Insurance Agent. If in doubt always check with your insurance company. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="8"></A>Comprehensive Cover<BR> </B>On a motor insurance policy comprehensive cover insures against any accident that you may have, whether your fault or not. This includes damage caused to your car when it is unattended such as a hit and run, or vandalism. Watch out though, claims can result in loss of no claims discount. Just because it isnt your fault doesnt mean that your bonus is safe. Check before you claim. This also covers you for your legal liability to third parties (including damage to their car or compensation to them for injuries sustained if the accident was your fault). In addition the cover should extend to fire damage to your vehicle or any damage arising out of the theft or attempted theft of your vehicle. Windscreen cover is usually included but check to see what the excess is. Using Insurers preferred Windscreen Suppliers may reduce your excess. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="9"></A>Compulsory Excess<BR> </B>This is a mandatory amount deducted from any claim settlement and represents your contribution to the claim cost. If you have an excess of £50 and your claim is for £300, then you will only receive £250 from your Insurer. If the accident (in the event of a motor claim) was not your fault then you may be able to recover this from the person to blame (third party) or their Insurers. (See Uninsured losses). <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="10"></A>Convictions<BR> </B>Convictions subject to the Rehabilitation of Offenders Act (ROOA) have to be declared to the Insurer otherwise your policy cover could be voided. Any criminal convictions, including motoring convictions, fixed penalties and pending convictions have to be declared. Watch out for the ROOA as some convictions have to be declared for up to 12 years. If in doubt declare the facts  your Insurer will ignore it if it doesnt apply because they have to by law. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="11"></A>Cover<BR> </B>The protection offered by your insurance policy. Examples on a motor insurance policy would be Comprehensive or Third party fire and theft. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="12"></A>Cover Notes<BR> </B>A temporary document which acts as a certificate of insurance. This meets the requirements of the Road Traffic Act (RTA). <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="13"></A>Credit Card Payments<BR> </B>Payments made using a credit card such as Access or Mastercard. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="14"></A>Debit Card Payments<BR> </B>Payments made using a debit card such as Switch or Delta. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="15"></A>Direct Debits<BR> </B>Payments made using a Direct Debit system where regular payments are automatically taken from your bank account.<A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="16"></A>Discounts<BR> </B>A discount is a reduction from the base rate due to a reduction in a risk factor. An example of this would be a security discount if you had a recognised alarm system. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="17"></A>Endorsements<BR> </B>(a) Any time you change your policy after first taking it out, the document you receive from your insurer showing the mid-term changes is called an endorsement. <BR> (b) Another definition of endorsement is the penalty shown on your driving licence following a motoring conviction. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="18"></A>Excess<BR> </B>This is an amount deducted from any claim settlement and represents your contribution to the claim cost. If you have an excess of £50 and your claim is for £300, then you will only receive £250 from your Insurer. If the accident (in the event of a motor claim) was not your fault then you may be able to recover this from the person to blame (third party) or their Insurers. See Uninsured losses. An excess may be voluntary or compulsory, and may apply only for certain types of claims. Watch out for different excesses for different parts of your policy. (e.g. a motor policy may have a basic £100 excess but the windscreen excess may only be £40. Also there are compulsory additional excesses for young drivers; so £100 excess for you may be increased to £250 for your son or daughter at college). <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="19"></A>Fees<BR> </B>These are administration fees, which are charged in the event that customers support is needed. These are kept as low as possible but are necessary to ensure that customers have the widest choice possible. <A HREF="#top">Back to top</A><BR> <BR> <B><A NAME="20"></A>Foreign Use<BR> </B>On a motor insurance policy this refers to when the vehicle is used abroad. Watch out, as not all Insurers cover you whilst abroad. Even if your insurance certificate states that it covers you in the EC you may need to check. Sometimes the cover only meets the minimum legal requirements of the country you are visiting. You will still need to tell your Insurer to extend the Comprehensive accidental damage cover on your car for the time you are abroad. <A HREF="#top" CLASS="normal">Back to top</A><BR> <B> <BR> <A NAME="21"></A>Green Cards<BR> </B>This is the document you receive for the extension to an insurance policy to provide cover when driving abroad. It is coloured green and contains information regarding your cover in several languages so that it can be understood when presented to other drivers or police abroad. See Foreign Use. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="22"></A>High Value Loading<BR> </B>Most motor policies assume a maximum value of £25,000. When the vehicle is greater than this figure additional loadings might apply. The Sum Insured should represent the current market value of your car and should be reviewed at each renewal date. See Sum Insured. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="23"></A>Insurance Ombudsman<BR> </B>This is the ombudsman for the insurance industry and to whom all complaints should be addressed if no satisfaction has been obtained from yourcompanyname or your Insurer. Please see Complaints Procedure. <A HREF="#top" CLASS="normal">Back to top</A><BR> <B><BR> <A NAME="24"></A>Insurance Premium Tax (IPT)<BR> </B>This is a tax which is payable on insurance policies taken out or renewed since 1/10/94. The current rate of IPT is 5%. Most premiums include ipt within the quotes but watch out for the term plus ipt. Also note that travel policies have a rate of ipt of 17.5% for individuals although businesses only pay the standard rate of 5%. Also, ipt cannot be reclaimed from the Inland Revenue in the same way as VAT can. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="25"></A>Insured<BR> </B>You become the Insured ( the person in whose name the policy is in) once you have started the policy cover. Before the cover started you were the Proposer. <BR> <B><BR> <A NAME="26"></A>Insurers<BR> </B>Insurers are the companies who take the financial risk when you buy a policy and have to pay out in the event of a valid claim; once they have received your premiums. They are regulated by the Association of British Insurers and the Dti (Department of Trade and Industry). <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="27"></A>Left Hand Drive Vehicles<BR> </B>Vehicles where the steering wheel is on the left, designed for countries where people drive on the right. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="28"></A>Legal Expenses Insurance<BR> </B>Legal Expenses Insurance is an option to meet legal and recovery for your uninsured losses resulting from an accident. For example, you may need to sue the Third Party for recovery of your out of pocket excess. You may also have had to hire a car or may need to obtain compensation for an injury arising from an accident, which was not your fault. Such things are not always covered under your Comprehensive policy. A legal expenses policy to meet those legal costs is a must. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="29"></A>Loads<BR> </B>A load is an increase on the base rate due to an increased risk factor. An example of this would be if you had several speeding convictions making you more risky than someone who has always had a clean licence. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="30"></A>Material Facts<BR> </B>A material fact is any piece of information that might influence a reasonable underwriter in his or her assessment of the risk. Such facts may not always result in negative treatment of your policy but failure to disclose all information might void your policy. Material facts may include things such as losses that you have had which you may not have been covered for in the past or perhaps a member of your household who has a criminal conviction for theft. If in doubt, declare it up front and the Insurer will tell you where you stand. The Customer Support desk can always help if you have difficulties in obtaining cover. If in doubt  shout! <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="31"></A>Modified Vehicles<BR> </B>All changes to a vehicle are considered to be modifications. This includes things like replacement alloy wheels, bucket seats and steering wheels as well as the more obvious changes such as engine performance. Always declare the modifications in advance of buying your policy or declare to your Insurer before going ahead. The modifications may not always attract a loading in premium but failure to declare them could result in the policy being voided and you not receiving a full settlement of your claim. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="32"></A>No Claims Discount (NCD)<BR> </B>No claims discount (sometimes called 'no claims bonus') is calculated on a sliding scale, usually reaching a maximum of around 60% after 4/5 years. A typical scale is as follows: <BR> 1 year 30% <BR> 2 years 40% <BR> 3 years 50% <BR> 4 years 60%<BR> <BR> You will usually drop two years bonus if you have a claim. (e.g. If you had 3 years bonus at your last renewal resulting in 50% no claims discount and now you make a claim  then your next renewal will show that you only have 30% no-claims discount, having dropped two places in the above scale. <BR> <BR> Watch out for protected no-claims bonus. Not all Insurers offer the same deal. See Protected no-claims bonus. <BR> No-quotes <BR> <BR> Sometimes the system will say No Quote or Refer when you apply for a quote. This could be due to your particular circumstances where no Insurer wishes to offer you system produced cover without talking to you in more depth. (e.g. 17 year old driver with a ferrari). It could be that your needs are greater than the system was designed to provide. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="33"></A>Overnight Theft Loading<BR> </B>On a motor insurance policy this is an increase in premiums, which may apply when overnight theft cover is required and you are unable to meet policy conditions such as keeping the vehicle garaged. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="34"></A>Physical Disabilities<BR> </B>You may be required to declare any disabilities or medical conditions. <A HREF="#top" CLASS="normal">Back to top</A><BR> <B> <BR> <A NAME="35"></A>Policy<BR> </B>This the legally binding document which is the evidence of the cover. You should be able to examine all the policy wordings. You should check your policy carefully when you receive it and if any amendments are required you must notify your insurer before it is too late. There is no point checking the policy after you have had a loss only to find that there is a negative part that you werent expecting. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="36"></A>Premium<BR> </B>This is the amount that you will pay which goes to your insurer for the cover purchased. There may be additional costs such as legal expenses, specialist additional products and administration charges, all of which should be clearly highlighted. <A HREF="#top" CLASS="normal">Back to top</A><BR> <B> <BR> <A NAME="37"></A>Proposer<BR> </B>The person taking out the insurance and completing the proposal form. A policy is a legal contract between the Proposer and the Insurer. You are a Proposer before the policy starts. Once it starts you become the Insured. <A HREF="#top" CLASS="normal">Back to top</A><BR> <B> <BR> <A NAME="38"></A>Proposal Form<BR> </B>The proposal form is the basis of the contract. It is probably the most important aspect of the cover process. This form may be in written hard copy form or may be taken from the entered details on the system. As insurance is an intangible product whose price is based on the information provided by you then any errors or non-disclosure of material facts can result in the policy being voided. Check with your insurance company if you have any difficulties or need advice. Also, if you know of something, which the Insurer ought to know, but the proposal form doesnt ask that question, do not think that you do not have to tell them. You have a legal duty to disclose all facts. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="39"></A>Protected No Claims Discount<BR> </B>Once you have reached the dizzy heights of 4 years no claims discount, you may be offered protected no-claims as an option. This allows you, for a small additional premium, to obtain more lives. This means that you are entitled to make a claim or two without losing any of your no-claims discount and dropping down the scale. See No-Claims Discount. Watch out though because not all Insurers offerings are the same. Some products allow two claims in a two year period whilst others may be in a three or even five year period. Some schemes say that after you have used your lives then you lose all your bonus whilst others allow you to drop two years at a time down the scale. <A HREF="#top" CLASS="normal">Back to top</A><BR> <B> <BR> <A NAME="40"></A>Return Premium<BR> </B>A refund of premium following cancellation of the policy or changes, which reduce the risk such as removing a young driver. <A HREF="#top" CLASS="normal">Back to top</A><BR> <B> <BR> <A NAME="41"></A>Road Traffic Act (RTA)<BR> </B>The Act of Parliament which stipulates what is required by law. All motor insurance certificates and cover-notes are issued in accordance with the RTA. The RTA does not permit cover-notes or certificates of motor insurance to be backdated. You must therefore notify your insurer in advance of any changes. A typical example of this is where you wish to test drive a new car where you must notify your Insurer of the registration details first so that cover can be arranged. Also note however, that many Insurers do not like to offer this cover so you may wish to ask the vendor of the car to add you to their policy for the day. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="42"></A>Third Party<BR> </B>A policy is a legal contract to which you are the first party and the Insurer is the second party. Any other person with whom you have been involved in an accident is generally referred to as the Third Party. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="43"></A>Third Party Fire and Theft Cover<BR> </B>On a motor insurance policy this covers you for your legal liability to third parties (including damage to their car or compensation to them for injuries sustained if the accident was your fault). In addition the cover extends to fire damage to your vehicle or any damage arising out of the theft or attempted theft of your vehicle. Please note that usually the theft of the contents of your vehicle are not covered under this type of cover unless the entire vehicle and its contents have been removed. Even then there can be some limitations within the policy, so please check. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="44"></A>Third Party Only Cover<BR> </B>On a motor insurance policy this covers you for your legal liability to third parties (including damage to their car or compensation to them for injuries sustained if the accident was your fault). It also covers passenger liability but there is no cover for damage to your car from any cause whatsoever. This complies with the minimum legal requirements of the Road Traffic Act but very little more.<BR> <BR> <B>Vehicle Details</B><BR> The information describing exactly which vehicle you own (eg. the make, model and engine size etc) <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><A NAME="45"></A>Voluntary Excess<BR> </B>This is a voluntary amount deducted from any claim settlement and represents your contribution to the claim cost and is in addition to any Compulsory Excess. If you have an excess of £50 and your claim is for £300, then you will only receive £250 from your Insurer. If the accident (in the event of a motor claim) was not your fault then you may be able to recover this from the person to blame (third party) or their Insurers. See Uninsured losses. <A HREF="#top" CLASS="normal">Back to top</A><BR> <BR> <B><BR> <A NAME="n7"></A>Waiver <BR> </B>An agreement attached to the policy and accepted by the insured, to eliminate a specified pre-existing physical condition or specified hazard. <A HREF="#top" CLASS="normal">Back to top</A><BR><B><BR> <A NAME="n8"></A>Waiver Of Premium <BR> </B>A provision that sets certain conditions under which an insurance policy will be kept in full force by the company without the payment of premiums. <A HREF="#top" CLASS="normal">Back to top</A><BR><B><BR> <A NAME="n9"></A>Whole of Life Insurance <BR> </B>A life insurance policy providing payment on death, whenever this occurs. Premiums may be payable throughout life, or for a shorter period. <A HREF="#top" CLASS="normal">Back to top</A><BR><B><BR> <A NAME="n10"></A>Will <BR> </B>A legal document specifying how an individual's property is to be dealt with on his or her death and appointing Executors to carry out these instructions. <A HREF="#top" CLASS="normal">Back to top</A><BR><B><BR><A NAME="46"></A>Windscreen Cover<BR> </B>Windscreens are usually only covered under Comprehensive Private car policies and are subject to different excesses than the main policy. Damaged windscreens (i.e. scratched) may not have any excess if repaired by an approved Insurers Windscreen Company. Watch out for Commercial vehicles/vans as windscreens are not always covered but when are can be subject to the same excess as the main policy, rendering the cover useless. Windscreen claims rarely affect the no claims bonus. Check with your insurer before making your claim.<A HREF="#top" CLASS="normal">Back to top</A><BR><B><BR> <A NAME="n11"></A>With Profits <BR> </B>(Of life insurance policies) Entitled to a share of the insurance company's profit. Each year a bonus is added to the guaranteed sum insured to reflect the company's profit. Usual practice is to 'smooth' such bonuses so that a comparatively unsuccessful year will not necessarily lead to a lower bonus but a succession of poor years will be reflected by a gradual reduction of bonus rate (and conversely for a series of successful years). <A HREF="#top" CLASS="normal">Back to top</A><BR><B><BR> <A NAME="n12"></A>Without Profits <BR> </B>(Of life insurance policies) Not entitled to any bonus. The sum payable will only ever be the amount guaranteed in the policy however profitable the insurance company may be. <A HREF="#top" CLASS="normal">Back to top</A><BR><B><BR> <A NAME="n13"></A>Written Premiums<BR> </B>The total premiums on all policies written by an insurer during a specified period of time. <A HREF="#top" CLASS="normal">Back to top</A><BR></SPAN></FONT></P><FONT FACE="Arial" SIZE="-1"> </FONT> <P ALIGN="center"><FONT FACE="Arial" SIZE="-1"><SPAN CLASS="bodytext"><A HREF="#top" CLASS="normal">Back to top</A> </SPAN></FONT></P><FONT FACE="Arial" SIZE="-1"> </FONT></DIV><FONT FACE="Arial" SIZE="-1"> </FONT></DIV><FONT FACE="Arial" SIZE="-1"> </FONT></TD> </TR> </TABLE> <TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER"> <TR> <TD VALIGN="MIDDLE" ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"> </FONT> <P><FONT FACE="Arial" SIZE="-1"><B><FONT FACE="Arial" SIZE="-1">| <A HREF="home.html">Home</A> | <A HREF="site_map.html" TARGET="_top">Site Map</A> | <A HREF="menu-help_and_tools.html">Help & Tools</A> | <A HREF="contact_us.html">Contact Us</A> | <A HREF="frameset-login.html" TARGET="_top">Login</A> |<BR>| <A HREF="menu_corporate.html">Corporate Services</A> | <A HREF="individual.html">Individual Services</A> | <A HREF="frameset-menu-special_services2.html" TARGET="_top">Special Services</A> |</FONT></B></FONT></P></TD> </TR> <TR> <TD VALIGN="MIDDLE" ALIGN="CENTER"><HR></TD> </TR> <TR> <TD VALIGN="MIDDLE" ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"> </FONT> <P><FONT FACE="Arial" SIZE="-1"><B><FONT FACE="Arial" SIZE="-2">| <A HREF="employee_benefits_survey.html">Employee Benefits Survey</A> | <A HREF="enquiry_form.html">Enquiry Form</A> | <A HREF="mailing_list.html">Mailing List</A> | <A HREF="feedback_form.html">Feedback Form</A> | <A HREF="mailto:michelle@grosvenor-butterworth.co.uk">Email Us</A> |</FONT></B></FONT></P></TD> </TR> </TABLE> <P ALIGN="CENTER"><A HREF="http://www.saqnet.co.uk/scripts/hitcount11a.dll?hide:grosb"><IMG SRC="spacer.gif" WIDTH="200" HEIGHT="50" BORDER="0"></A></P> <TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" ALIGN="center" width="80%"> <TR> <TD>  <SCRIPT TYPE="text/javascript" LANGUAGE="javascript"> s="na";c="na";j="na";f=""+escape(document.referrer) </SCRIPT> <SCRIPT TYPE="text/javascript" LANGUAGE="javascript1.2"> s=screen.width;v=navigator.appName if (v != "Netscape") {c=screen.colorDepth} else {c=screen.pixelDepth} j=navigator.javaEnabled() </SCRIPT> <SCRIPT TYPE="text/javascript" LANGUAGE="javascript"> function pr(n) {document.write(n,"\n");} NS2Ch=0 if (navigator.appName == "Netscape" && navigator.appVersion.charAt(0) == "2") {NS2Ch=1} if (NS2Ch == 0) { r="&size="+s+"&colors="+c+"&referer="+f+"&java="+j+"" pr("<A HREF=\"http://www.TheCounter.com\" TARGET=\"_top\"> " BORDER=0 SRC=\"http://c1.thecounter.com/id=814925"+r+"\" align=left><\/A>")} </SCRIPT> <NOSCRIPT><A HREF="http://www.TheCounter.com" TARGET="_top"><IMG SRC="http://c1.thecounter.com/id=814925" ALT="TC" BORDER=0></A> </NOSCRIPT>  </TD> <TD> <div align="left"><IMG SRC="spacer.gif" WIDTH="8" HEIGHT="1" BORDER="0"> </div> <p align="right"><img src="http://www.saqnet.co.uk/scripts/hitcount11a.dll?hide:grosb" border="0" width="1" height="1"><a href="http://www.dynamicwebs.co.uk/" target="_top"><img src="dw_button.gif" alt="Designed by Dynamic Webs..." width="77" height="34" border="0"></a> <p align="RIGHT"> </TD> </TR> </TABLE> </BODY>