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Insurance Cal
Premium & Compensation Calculations
| Term | Definition |
|---|---|
| Total Premium | Basic premium + Loadings-reductions. |
| Loading | An amount added to your premium because the insured company there is an greater risk of loss occurring. |
| Compensation | Is the amount paid to you by the insurance company to help replace or repair the damages that were damaged or stolen. |
| Over insured | When the item was insured for more than it was worth. |
| Under insured | When the item insured was insured was less than what it was worth. |
| Average Clause | The formula used when an item is under insured and compensation needs to be paid out. |
| Formula for Average Clause | Amount item insured for What the item is worth X loss suffered |
| Claim form | Form to be filled in by the insured when loss/damage has happened and they are looking for compensation. |
| Ways to reduce risk | Install an alarm, drive carefully, don't smoke, take exercise,have a car alarm. |
| Reasons why premium go up | Previous claim, item has gone up in value,risk has increased, different type of insurance sought and insurance company's costs have gone up. |
Created by:
Mary Mc
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