INSURANCE POLICY TERMS

Introduction to insurance policy terms and wording

A consumer normally takes out a car insurance policy when he or she purchases a vehicle as protection against possible losses or damage due to accidents, theft, hijacking, fire or vandalism.

The wording of the insurance policy can be confusing. It is for this reason that the following terms and wording sometimes found in the Redisure insurance agreements are explained in more detail. Some of the terms are included even though not part of Redisure agreements, to help consumers when they deal with other insurance agreements.

Additional insured
It is a second or third person that is also protected in the insurance policy holder’s agreement with the service provider.

Commission
The commission is the broker percentage paid as part of an agreement. Redisure removed all broker commissions, and instead charge a flat fee for insurance administration. This ensures lower premiums for the client.

Comprehensive cover
It provides protection against physical damage to the car and loss that may occur due to theft, hijacking, fire, lightning and accidents etc. With Redisure the client has the option of also including the car radio in this type of cover.

Continues coverage
The term refers to the length of the insurance policy.

Covered person
A covered person can be your spouse, child or any other person that you name to also be covered by the insurance policy.

Date of inception
It is the starting date of the cover.

Excess
This is the amount that you have to pay, before the insurer pays the rest of the amount for the covered loss up to the maximum agreed limit. Clients of Redisure have the option to stipulate a larger excess amount payable by them in the event of a loss in return for lower premiums.

Excess waiver
This option is available when you don’t want to pay the excess amount when a loss or damage occurs to your vehicle in return for a higher monthly premium.

Expiry date
This is the last date of your cover.

Limits of liability
It is the maximum allowed payment that the service provider is willing to make per incident.

Named or nominated driver
It is any person that is named to be a driver and thus protected under the insurance policy of the person in whose name the cover is.

Occurrence limit
The occurrence limit is the upper limit that the insurance company is willing to pay per incident.

Person limit
It is the maximum amount that the insurance company is willing to pay for the injuries of one person per incident.

Policy
This is the written cover agreement between the insurance company and the person in whose name the cover is. It includes several documents and attachments that are relevant to the policy.

Policyholder
The term refers to the person in whose name the policy agreement is.

Preferred risk
It is any risk that is not normally covered in the insurance agreement, but for which the policy holder wants additional coverage. The premium is usually adjusted to include the risk. At Redisure, you can for instance, take additional coverage for your radio even though it is included in the overall coverage of the vehicle.

Premium
Refers to the price paid over the period of the insurance policy.

Private use
This refers to the main usage of the vehicle, for instance, to drive to work and back home is defined as part of private use.

Renewal of term
Refers to the practice of keeping an insurance policy active by means of renewing the cover for another period.

Term
This is the length of time that the cover stays in effect.

Third Party
Refers to the person and his or property that doesn’t form part of the agreement between Redisure and the policy holder. The third party can be the beneficiary to the agreement between the First Party (insurance company) and the Second Party (insured).

Top-up insurance
When your car is severely damaged or lost, there may still be an outstanding amount on your credit agreement, which may be more than the market value of the vehicle. The top-up insurance covers the balance.

Towing costs
It refers to the amount that is payable when your vehicle is towed.

Usage
It refers to the main purpose of driving your vehicle. If you are self-employed the main usage of the car is considered as business.

Vehicle Identification Number (VIN)
Refers to the specific number assigned to each vehicle for identification purposes. The number includes information on the serial and registration number, model, make, and engine number, as well as year registered etc.

Redisure offers three insurance policy options to our clients. The first is the comprehensive cover, while the second is Third Party, theft and fire, and also just Third Party cover.