Glossary

A sudden, external and unintended event causing damage or injury. Gradual deterioration is not an accident, which is why wear and tear sits outside most policies.

What an item is worth on the market at the time of loss, after depreciation. Motor claims are settled on this basis, not on the price you originally paid.

Cover added to the standard policy for an extra premium — glass without excess, a replacement car, legal protection.

An intermediary that represents one insurance company and sells its products. Different from a broker, which represents the client.

A policy that covers every cause of loss except those it specifically excludes. The opposite approach to a named-perils policy, and usually broader.

The person who receives payment under a policy — typically the person named on a life policy.

An intermediary that represents the client rather than an insurer, and compares the market on their behalf. Licensed and supervised separately from agencies.

The document evidencing the contract. It sets out cover, exclusions, sums insured, excess and period.

A loss or damage covered by the policy, and the process of having it paid.

Cover that responds to claims notified during the policy period, regardless of when the incident occurred. Common in professional and financial lines.

Insurance required by law. Traffic insurance and DASK are the most common examples in Turkey.

Compulsory Earthquake Insurance. Covers earthquake damage to the structure of a home up to an annual maximum. Does not cover contents.

The information you give the insurer when applying. An incorrect or incomplete declaration can reduce or void a claim.

See Excess. The part of a claim the policyholder carries.

Your legal obligation to tell the insurer everything material to the risk, both at inception and when circumstances change.

A document recording a change to a policy already in force — a new address, a different vehicle, added cover.

The portion of each claim you carry yourself. A higher excess lowers the premium and raises what you pay when something happens.

Something the policy specifically does not cover. Reading the exclusions tells you more about a policy than reading the cover list.

The date cover ends. Cover does not continue past it, whether or not a renewal notice has arrived.

In marine transport, the principle that all parties share a loss deliberately incurred to save the voyage. Your share can be substantial.

Any period after expiry during which cover continues. In Turkey it is rarely as long as people assume and is not something to rely on.

International motor insurance certificate that extends Turkish traffic insurance cover to participating countries.

Cover for the vessel itself, its machinery and equipment, as distinct from liability to third parties.

Standard international trade terms defining at which point in a shipment risk passes from seller to buyer. They decide who needs cargo insurance for which leg.

The payment made under a policy. The principle behind it is to restore the position before the loss, not to create a profit.

The person or property covered by the policy. Not always the same as the policyholder who pays for it.

The company carrying the risk and paying claims. The broker arranges the cover; the insurer provides it.

Comprehensive motor insurance covering damage to your own vehicle. Optional, and separate from compulsory traffic insurance.

Cover for the harm you cause to other people or their property, rather than for your own losses.

Claims paid divided by premium earned. It drives pricing on fleets and group schemes more than any published tariff.

Cover for goods while in transit by road, sea, air or rail.

A policy covering only the causes of loss it lists. Anything not named is not covered.

A discount earned by claim-free years on motor policies. It belongs to the driver, not the insurer, and transfers when you switch.

Cover that responds to incidents happening during the policy period, whenever the claim is eventually made.

The person or company entering into the contract and paying the premium.

The amount paid for the cover, including taxes and levies.

A medical condition present before a health policy starts. Usually excluded, or accepted with a loading or a waiting period.

If the sum insured is below the true value, the claim is reduced in the same proportion. The most common reason a claim disappoints.

The insurer's right to recover from the person at fault after paying a claim. Drink-driving and driving without a licence typically trigger it.

Insurance bought by insurers to spread their own risk. It is why very large risks can be placed at all.

Issuing the contract for a new period when the current one expires. Cover and premium are both set again.

What it would cost to replace an item new today. Used for contents on some policies, in contrast to actual cash value.

Turkey's social security institution. Provides state health cover and sits underneath complementary health insurance.

See Recourse. The insurer stepping into your position to recover from whoever caused the loss.

The maximum the policy will pay, and the figure claims are measured against. Setting it too low is the single most expensive mistake in property insurance.

The independent assessor who examines a loss and reports on its cause and value.

Anyone other than the insured and the insurer — the other driver, a neighbour, a customer.

Compulsory motor liability insurance covering the damage you cause to others. Does not cover your own vehicle.

The insurer's assessment of whether to accept a risk and on what terms. The reason two people get different prices for the same product.

A period after inception during which certain cover is not yet active. Common for pregnancy, some surgeries and chronic conditions.