Ingosstrakh  >  My Assistant  >  Glossary  >  I

I

A

B

C

D

E

F

G

H

I

K

L

M

N

O

P

Q

R

S

T

U

V

W

Print

Insurable interest

A measure of material interest in insurance expressed through the insured amount and the terms of the insurance policy.

Insurable interest

A direct damage or loss which the insurant may potentially incur in the insured event. The insured value under the insurance contract shall not exceed the size of the insurant’s insurable interest.

Insurable objects, objects of insurance

Life, health, working ability of persons (in personal insurance); buildings, constructions, motor vehicles, freight, collections, household effects, transported load and other tangibles (in property insurance); civil liability of the insurant for material damages caused to a third party or parties, e.g. during or as the result of operation of hazardous equipment (in civil liability insurance).

Insurable risk

1. The probability of an insured event. It expresses the scope of the insurer’s possible liability in any type of insurance. It is determined on the basis of statistical information, rule of thumb or the theory of probability. The relevancy of the insured risk is validated by various economic and mathematical models (actuarial calculations). It is important from the standpoint of the size of the insurance fund.
2. Insured event.

Insurance

A system of forms and methods aimed at building up cash funds for the purpose of indemnifying the damages caused by or as the result of an uncontrollable and unforeseen contingency and to render assistance to insurants in certain events in their lives. In terms of form, insurance can be compulsory (by law) and voluntary (as agreed between the insurant and insurer). In terms of insurable interests, insurance can be personal (life insurance, health insurance), property insurance and liability insurance for damages to a third party. Reinsurance is a specific area in insurance.

Insurance agents

Permanent residents of the Russian Federation who perform on the grounds of civil law contracts or Russia-based legal entities (commercial organizations) representing the insurer in relations with insurants and acting for and on behalf of the insurer in compliance with the delegated powers.

Insurance Authority

A governmental authority in charge of control of insurance activities.

Insurance brokers

Permanent residents of the Russian Federation duly registered in the laws of the Russian Federation as individual entrepreneurs or Russia-based legal entities (commercial organizations) who act for and on behalf of insurers (reinsurers) or insurants (reinsurants) and provide services as to the signature of insurance (reinsurance) contracts between the insurer (reinsurer) and the insurant (reinsurant) and the fulfillment of such contracts (‘rendering of brokerage services’). While rendering brokerage services in relation to the signature of the foregoing contracts, an insurance broker cannot act for and on behalf of the insurer at the same time as acting on behalf of the insurant and vice versa.

Insurance brokers are entitled to any insurance-related business that is not against the law except acting as an insurance agent, insurer or reinsurer.

Insurance brokers cannot do any business that does not relate to insurance.

Insurance Contract

An agreement (a juridical act) between the insurant and the insurer (frequently through the intermediary of an insurance agent or broker) which governs the commitments of the parties pursuant to the terms and conditions pertaining to this type of insurance. As evidence of the contract, the insurer shall issue an insurance policy to the insurant.

Insurance contribution

A paid-in insurable interest; a payment for an insurable risk from the insurant to the insurer by law or under an insurance contract. It is determined on the basis of the applicable tariff rate, insurance amount, term of insurance and some other factors. It is contributed by the insurant as a one-off payment upon entering insurance relations or in portions (e.g. monthly, quarterly) throughout the term of the insurance. The size of the insurance contribution is indicated in the insurance policy.

Insurance coverage

A list of certain events (for example, theft, fire outbreak, earthquake) provided by the law or in the insurance contract which, in the event of occurrence, are subject to indemnification by the insurer to the insurant.

Insurance field

The maximum number of objects (e.g. vehicles) coverable by insurance in a specific area/region. It is a percentage of overall coverage. The maximum coverage of an insurance field is 100%.

Insurance fund

An element of social reproduction, a reserve of material resources or cash assets built up with the contributions from insurants and managed by the insurer. The insurance fund is linked by available insured interests. A portion of the insurance fund shall be always placed in working assets, i.e. bank deposits, listed shares, treasury notes etc.

Insurance indemnity

The amount payable from the insurance fund to cover the losses in property insurance and in the insurance of the insurant’s civil liability for material damages caused to a third party. The size of insurance indemnity may be equal to the insured amount or be lower than it depending on the specific circumstances of the insured event or terms of the insurance contract (e.g. franchise).

Insurance indemnity for losses

Full or partial compensation by the insurer of the value of property lost or damaged as the result of an insured or restitution of lost income or health damage compensation through the payment of an insurance indemnity. In property insurance, the losses subject to indemnification are the losses incurred by the insurant. In liability insurance, indemnified is the loss inflicted to a third party.

Insurance market

A system of economic insurance-wise relations.

The economic environment where insurers operate. The necessary condition for efficient functioning of the insurance market is the availability of information and organizational framework. The insurer needs to know all and everything about the available insurable interests, while the insurant has to know about possibilities to obtain insurance. This is a link between the parties to insurance relations. In a loose sense, the insurance market is an aggregate of insurance companies. The activities in the insurance market are monitored and controlled by insurance supervision.

Insurance policy

A fiscal document of a standard form issued by the insurer to the insurant to confirm the signature of an insurance contract and summarizing the terms of such contract. Insurance policies can be standard and individual (customized). Standard policies are issued by the insurer for a broad range of typical insurable risks of mass character.  Individual, or customized, policies can be as follows: insurance of the looks of a movie star or insurance of a violinist’s hands, and usually cover profession-related or career-wise interests.

All insurance policies may stipulate special conditions that meet specific insurable interest and cover specific actions needed in the context of such interests (e.g. insurant’s will). The inclusion of special conditions from the insurance contract in the insurance policy usually accompanied with a surcharge on the insurance premium in absolute or relative terms.

Insurance portfolio

The aggregate of risks underwritten by the insurer for insurance and for a certain period.

Insurance portfolio

1. The actual number of insured objects or the number of insurance contracts supported with documents in the insurer’s records.
2. An aggregate of insured risks underwritten by the insurer for a certain period (usually, for a year).

Insurance Supervision

Control over activities of insurers authorized to provide insurance services on the part of a dedicated state authority.

Insurance valuation

The value of an asset/property determined for insurance purposes. In practice, the valuation can be done by actual value or by declared value, however, it shall not exceed the limit determined by the insurer on the basis of fair market value or on any other basis. To obtain a correct insurance valuation, the insurer may engage insurance valuation experts if and when necessary. Information on the insurance valuation is the basis for determination of the insurance tariff and the size of the insurance premium.

Insurant

1. A physical person or a legal entity with an insurable interest when such person or entity enters civil law relations with an insurer by law or a bilateral deal (contract);
2. Owner (holder) of an insurance policy.

Insurant’s Fault

Traditionally, insurers use the terms of gross fault and intentional fault of the insurant. Gross fault of the insurant offers a sufficient basis to the insurer to decline the payment of the insurance indemnity or to compromise the size of the payment against the character and the extent of the loss incurred by the insurant. Negligence or carelessness on the part of the insurant, if the latter bring no serious consequences, can be construed by the insurer as excusable for the purpose of its decision on the payment of the insurance indemnity.

Insurant’s Representation

Before the execution of an insurance contract, the insurant shall make a representation to the insurer of all material facts as should be known to the insurer in view of his insurance business and which may affect the insurer’s decision to accept or decline a risk and may vary the insurance premium rate.

Insured amount

A sum adequate in size to the insurable interest and insurable risk which is the amount of insurance of property, civil liability, life or health of the insurant. In international insurance practice, insured amount is referred to as insurance coverage.

Insured amount in VHI

A sum determined by the insurer as the scope of insurance coverage. An insured amount is determined in the VHI for each program per insurant and per term. In Ingosstrakh, the insured amount usually covers any type of medical assistance or service as may come necessary at any time throughout the duration of the contract. For example, the insured amount for outpatient treatment in Moscow per one insured person for a year is US$50k. For persons that enroll for the VHI at any time during its term, the insured amount is US$50k as well.

Insured event

An actualized risk which entails the insurer’s liability to make a payment of insurance indemnity from the insurance fund. The payment is usually preceded by a detailed investigation of the facts and circumstances of the insured event from the standpoint of its credibility and to eliminate intended action or inaction (actual malice) on the part of the insurant as may have resulted in destructive of harmful consequences.

Insured event in VHI

With many insurers, the notion of an insured event is generally the same. Ingosstrakh provides the following definition: ‘an insured event under a VHI contract (‘The Contract’) is a referral of the Insured Person at any time during the term of the contact to a medical facility listed in the Contract, or its referral to any other medical facility in line with the procedure provided in the Contract  and/or in the Voluntary Health Insurance Program (‘The Program’) in the event of an acute disease, exacerbation of a chronic disease, injury (including burns and frostbites) and positioning for medical aid or other services included in the Program.

Please note that in the event of hospitalization of the Insured person prior to the effect of the VHI contract, such hospitalization cannot be covered by Ingosstrakh since it does not constitute an insured event. However, Ingosstrakh covers the stay and medical care of the Insured Person in inpatient facilities up to the day of discharge from hospital even if the VHI contract has expired.

For outpatient care, an insured event is the referral of the Insured person to the medical facility for a service stipulated in the Contract or the Program only if such referral is made at any time during the term of the VHI contract.

Insured value

Actual value of the insured object.

Insurer

A legal entity which provides insurance and in charge of creation and expenditure of the insurance fund. By the form of their organization, insurers can be joint-stock companies, benefit societies and state-funded insurance companies. In market economy, joint-stock insurers are the major type of insurance companies.

Insurer’s limit of liability

The amount which the insurant may obtain from the insurer in the event of a loss incurred through the actualization of threats under insurance coverage.

Intentional Action

An act of crime or an attempt of an act of crime by third parties in relation to the motor vehicle.

Investments

A long-term contribution of assets (tangible or intellectual) by the insurer in an industry or other area for profit earning purposes. The insurer’s investments are cash assets (deposits), shares, equity contributions and other securities, as well as real and personal property, copyrights, know-how and other.  Investments can be financial investments, capital investments and inventory stocks.