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Guardian General Insurance Limited Glossary



A person who investigates claims and recommends settlement options based on estimates of damage and insurance polices held


The term ‘under-insurance’ is linked to ‘average’ in that most policies carry an Average Clause and this basically means that if the sum insured at the time of a loss is less than the insurable value of the insured property, the amount claimed under the policy will be reduced in proportion to the under-insurance.



An individual or company who receives commissions from the sale and service of insurance policies. These individuals work on behalf of the customer and are not restricted to selling policies for a specific company but commissions are paid by the company with which the sale was made.



A request or demand for payment of the benefits as in accordance within the terms and conditions of an insurance policy.


A person who makes an insurance claim.

Constructive Total Loss or "Write Off"

The cost of repairing a vehicle is more than what the vehicle is actually worth (market value).

Contributory Negligence

Being partially responsible for an accident.


Deductible or "Excess"

The first portion of a loss that the insured must pay, whether right or wrong.


The loss in value (wear and tear) of an asset over time.


Emergency Roadside Assistance

A courtesy benefit provided under a motor policy that assists an insured in an emergency situation where the vehicle has been rendered inoperable at the point in time and may require any of the following services: Towing, Emergency Battery Jumpstart, Emergency Flat Tyre Assistance, Emergency Refuel Service, Emergency Locksmith Service.



A monetary compensation which restores the claimant to the exact financial position prior to the loss.


Person/entity appointed to gather facts/information or evidence leading to a determination of liability.


Loss of Use Allowance

A provision in an insurance policy that compensates for the loss of use of the vehicle, whilst it is being repaired. The claimant may get either cash or a courtesy vehicle.


Market Value

The value of an asset lost or damaged at the time of a loss.


OEM Parts

Initials used for Original Equipment Manufacturer parts, are parts manufactured by the original vehicular manufacturer.



The event that caused the loss or damage (i.e. collision, theft, flood, fire)


The price of insurance protection for a specified risk for a specified period of time.



The full cost of rebuilding to the original form at the time of the loss.


In effect, insurance that an insurance company buys for its own protection. A reinsurer assumes part of the risk and part of the premium originally taken by the insurer. Reinsurers don’t pay policyholder claims directly. Instead, they reimburse insurers for claims paid.



Damaged property/item that is salvageable in a loss and can be take into account by the insurer in reducing the extent of the loss/value of the claim.

Salvage Value

The value placed on the salvageable property/item.

Sum Insured

The value that represents the amount for which the property/item is insured.


The legal process by which an insurance company, after paying a loss, seeks to recover the amount of the loss from another party, who is legally liable for it.



The result of the policyholder’s failure to buy sufficient insurance. An underinsured policyholder may only receive part of the cost of replacing or repairing the damage due to under insurance.

Utmost Good Faith / Duty to Disclose

Where each party to the proposed insurance contract is legally obligated to reveal all information which will influence the other party’s decision to enter into the contract whether such information is requested or not.



A value place on property for insurance purposes.