11/02/2020
Our role as insurance brokers is to make insurance and risk management easier and more affordable for our clients. We believe in empowering our clients and ensuring that they understand some frequently used insurance terms such as:
Premium- the amount of money that an individual/organization pays for an insurance policy.
Insurance Coverage- the amount of risk or liability that is covered by an individual or entity’s respective insurance policy.
Sum Insured/Limits of Liability- the sum insured is the value of an asset/ maximum amount that the insurance company will pay in the event that the object of cover, for example, the Client’s home is completely destroyed. There is no guarantee that the sum insured will be sufficient to cover all the costs associated with the reconstruction of the Client’s home. Therefore, in the Zimbabwean context there is need for continuous review of the sum insured to ensure that it is in line with inflation and other variable factors.
Excess/Deductible - the initial amount payable by the client when a loss occurs as a contribution towards the claimed amount. It is meant to instill a sense of responsibility on the part of the insured to ensure that they exercise caution and behave as if they are not insured. Once the client pays the excess, the insurance company will pay the rest of the claim value up to a certain limit, which is defined by the limit that is stated in the Client’s policy.
Exclusions- a policy provision that eliminates coverage for certain types of risk, for example, a political riot and driving under the influence of alcohol; circumstances which are not covered by the respective policy.
