Glossary
Insurance Claim
An official request submitted to the insurer by the policyholder, beneficiary, or a third party who has suffered a loss, for the payment of an insurance sum or compensation upon the occurrence of an insured event covered by the policy. The claim must be submitted in writing and accompanied by the necessary documents and evidence proving the occurrence of the event and its consequences.
Insurance Claim Notification
A written notice that the insured submits to the insurance company to report that an insured event has occurred. This notification is usually made within a specified period after the event and includes information about the incident, the damage caused, and the affected persons.
Insurance Company
A legal entity licensed by the Financial Supervision Commission, which carries out insurance activities in accordance with the applicable legislation. It provides insurance products and assumes financial risks in exchange for receiving a premium, paying compensation or providing other agreed assistance upon the occurrence of an insured event. It may be a domestic or foreign entity operating in the country through a branch or under the rules of the European Union.
Insurance Contract
An agreement concluded between an insurer and a policyholder when purchasing an insurance policy, under which the insurer undertakes to provide protection against specified risks, and the insured or policyholder pays the agreed premium. A contract concluded when purchasing an insurance policy between the consumer and the insurer.
Insurance Contributions
Monthly monetary payments made by employees and/or their employers into the social and health insurance system. They fund pensions, unemployment benefits, maternity or temporary disability allowances, healthcare, and other social payments. The amount and distribution of social security contributions are determined by law and depend on income, the type of employment relationship, and the insurance risk. Social security contributions ensure access to social protection in certain events, such as illness, old age, or unemployment. Contributions can be compulsory (e.g. state social insurance, supplementary compulsory pension insurance, health insurance) or voluntary (e.g. voluntary pension insurance).
Insurance Coverage
The scope of rights and obligations arising from the insurance contract, under which the insurer undertakes to pay compensation or the sum insured upon the occurrence of certain events (risks), within the agreed terms, limits, periods, and exclusions. It encompasses the covered risks, territorial and temporal scope, amounts and liability limits, as well as the methods and conditions for making claims.
Insurance Indemnity (Payout, Compensation)
Insurance compensation (insurance indemnity) — the monetary amount that the insurer pays to the insured, a third-party beneficiary, or the harmed party upon the occurrence of an insured event, with the purpose of compensating for the incurred losses within the agreed insurance coverage. In property insurance, the amount of insurance compensation cannot exceed the value of the loss at the time the insured event occurs.
Insurance Intermediation
Activities involving the provision of services related to the offering, consulting, preparation, and conclusion of insurance contracts, as well as assisting in their management and execution, including upon the occurrence of an insured event.
Insurance Policy
A document containing the details of the insurer and the insured, information about the insured object, the insurance coverage, the sum insured, and the premium. It specifies the territorial scope, the duration, and the start date of the insurance, as well as other parameters depending on the type of insurance product. In everyday language, it is used as a synonym for “insurance.”
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