Understanding key insurance terms is crucial in making informed decisions. In our part one, we looked at 10 common insurance terms. Here, we will break down 10 more essential terms to help you navigate policies confidently.
Coverage
The protection and benefits provided by an insurance policy against specific risks or losses.
Grace period
The specified period immediately following the premium due date during which the policyholder can pay the premium without the policy lapsing.
Lapse
This refers to the automatic termination of an insurance policy because the premium has not been paid within the grace period.
Liability
This is the legal responsibility for causing damage or injury to another person or property. Liability insurance provides coverage for such incidents.
Loss history
The number of insurance claims previously made by insured persons. An insurance company will consider loss history when underwriting a new policy or considering renewal of an existing policy.
Provider network
A list of doctors, specialists, hospitals and other health care providers that insurance companies contract with to provide medical care to its members.
Quote
When searching for a new insurance policy, an insurance agent or insurer will give you a quote, which is an estimate of the premium you will pay for the policy. This estimate is based on certain information that you provide to them.
Renewal
The process of continuing an insurance policy for another term after its expiration, usually involving the payment of a new premium.
Underwriting
The process by which an insurance company evaluates the risk of insuring a person or entity and determines the terms and premium rates of coverage.
Work Injury Benefits Act (WIBA)
This is an employee benefit plan enforced by the Kenya law that guarantees your employees get financial compensation for injuries, illnesses or loss of life that occur while at work.
While there are many more insurance terms than the ones outlined here, these are some of the more common terms and definitions that can empower you to make informed decisions about your coverage and financial security. At CIC Group, we are committed to simplifying insurance and ensuring our products meet your needs. Stay informed, ask questions and let us assist you secure a brighter and more confident future.
