Car Insurance - Insurance that covers your car against theft or loss / damage as a result of an accident or collision.
Cede - The transfer of rights in a policy to another person or entity.
Cessionary - The person or entity to whom you have transferred your rights in a ceded policy.
Claim – In the event of an unfortunate incident, such as a car accident or hijacking (related to car insurance), death or disability (related to life insurance) or a natural disaster damaging your home (related to building insurance) – a claim is then made by the person insured against such risks to the insurance company. A claim, then, is basically a request made by the insured for payment of the benefits as provided by the policy. The insured making the claim is referred to as the Claimant.
Claim Number – Every claim submitted by the insured will be given a unique identifying number allocated to it for referencing purposes. Essentially, it’s a reference number, which in this instance is referred to as a claim number.
Claims-Free Period - A period in which no claims are issued, usually leading to a benefit.
Co-insurance – This is an arrangement that commonly involves separate insurers sharing the cover of one particular risk.
Commencement Date - The date that you started receiving coverage in your insurance policy, also known as 'the start date'.
Comprehensive Insurance – This is the ultimate car insurance product, and the most commonly recommended. Comprehensive car insurance covers your vehicle in the event of almost any form of damage or theft.
Compound Interest - The addition of interest credited to a loan is known as compound. Compound interest is simply interest on current interest. It is the result of reinvesting interest, rather than paying it out. So, the interest in the next period is then earned on the principal sum plus previously accumulated interest.
Contents Policy – Also referred to as Household Contents Insurance. This kind of policy covers the contents of your home or building, whether it be furniture, appliances or other valuables.
Contribution - The money that you, as a policyholder, pay to a financial company or insurer for the product set out in a policy.
Coverage – This is the range of protection provided under an insurance policy. In car insurance, for example, the coverage will list the risks or perils that your vehicle is insured against – depending on the type of cover you have chosen. For instance, a third party, fire and theft policy will cover the damages inflicted upon the other vehicle involved in a collision, but not the damage to your own. Every insurance policy covers certain incidents, so it’s important to know what the limits of your coverage.