Understanding insurance terms is crucial for making informed decisions that protect your family, business, or personal assets. With so many terms and jargon, it’s easy to feel overwhelmed. However, knowing what these terms mean is essential for choosing the right coverage and ensuring you're fully protected. In this guide, we've broken down the most important insurance terms you'll encounter, providing you with the clarity and confidence to manage your insurance needs effectively.

Key Insurance Terms

A   •   B   •   C   •   D   •   E   •   F   •   G   •   I   •   L   •   M   •   N   •   P   •   R   •   S   •   T   •   U   •   V   •   W

A

• Accident (Aksidente): An unexpected event that results in damage or injury, typically covered under various insurance policies.
• Act of God (Gawa ng Diyos): Natural events beyond human control, such as earthquakes or floods, that are covered under certain policies.
• Adjuster (Tagatasa): A person who investigates insurance claims to determine the extent of the insurer's liability.
• Allied Perils: Additional risks covered under a policy, typically related to property insurance.
• Annual Aggregate Limit: The maximum amount an insurer will pay for all claims within a policy year.
• Applicant: The person or entity applying for insurance coverage.
• Assured: The individual or entity covered by an insurance policy.
• Average Clause: A provision in insurance that reduces the payout proportionally if the insured value is less than the actual value.

B

• Beneficiary (Benepisyaryo): The person or entity entitled to receive the benefits from an insurance policy.
• Binder: A temporary insurance contract that provides coverage until the formal policy is issued.
• Breach of Warranty: The violation of a policy condition, which may void the coverage.
• Broker (Tagapamagitan): An intermediary who negotiates insurance contracts on behalf of the insured.
• Burden of Proof: The obligation to prove the truth of a claim, often resting on the claimant in insurance disputes.

C

• Cancellation Clause: A provision that outlines the conditions under which a policy can be canceled.
• Cancellation Warning (Babala ng Kanselasyon): A notice provided to the policyholder indicating potential cancellation if certain conditions are not met.
• Claim (Paghahabol): A request made by the insured for payment based on the terms of the policy.
• Claimant (Naghahabol): The person making a claim under an insurance policy.
• Co-Insurance: A cost-sharing arrangement where the insured pays a portion of the claim.
• Collection: The process of receiving premium payments from policyholders.
• Commission: The fee paid to an insurance broker or agent for arranging the insurance policy.
• Comprehensive General Liability (CGL): A broad type of liability insurance that covers businesses against various risks.
• Conditions: Provisions in the policy that specify the rights and duties of the insurer and the insured.
• Consequential Loss: Indirect losses that occur as a result of a direct loss, such as lost profits due to business interruption.
• Coverage (Saklaw): The protection provided under an insurance policy.
• Covered Loss: Any loss that falls within the scope of the insurance coverage.

D

• Damages: The compensation sought or awarded in a claim for loss or injury.
• Declarations Page: The section of the insurance policy that outlines key details such as coverage limits, policyholder information, and premium amounts.
• Deductible (Bawas): The amount the insured must pay out-of-pocket before the insurer pays the claim.
• Depreciation: The reduction in the value of an asset over time, often considered when determining the payout in a claim.
• Disclosure: The obligation to provide accurate and complete information when applying for insurance.
• Dispute (Hindi Pagkakasundo): A disagreement between the insurer and insured, often over the interpretation of the policy terms.
• Double Insurance: When the same risk is covered by more than one insurance policy.

E

• Earned Premium: The portion of the premium that the insurer has earned, based on the coverage provided so far.
• Effective Date: The date when the insurance coverage begins.
• Endorsement (Pag-apruba): A document that modifies the terms or coverage of the original insurance policy.
• Excess: The amount the insured must pay towards a claim before the insurer's coverage kicks in, similar to a deductible.
• Exclusions (Mga Hindi Saklaw): Specific conditions or circumstances that are not covered by the insurance policy.
• Expiration Date: The date on which the insurance policy coverage ends.

F

• Final Notice (Huling Paalala): A last reminder sent to the policyholder before a policy is canceled or a payment is due.
• Force Majeure: Unforeseeable circumstances that prevent the fulfillment of a contract, often used in insurance to describe events like natural disasters.
• Fraud (Pandarayang): Intentional deception to secure unfair or unlawful gain, often leading to denied claims.
• Free-Look Period: A period during which a new policyholder can cancel the policy without penalty and receive a refund.

G

• Grace Period (Palugit): The additional time allowed for the payment of a premium after the due date without canceling the policy.
• Gross Premium: The total premium amount paid by the policyholder, before any deductions or commissions.

I

• Immediate Family Member: Close relatives such as a spouse, children, or parents who may be covered under certain insurance policies.
• Indemnity (Kompensasyon): The compensation provided to the insured to cover a loss, restoring them to their financial position prior to the loss.
• Incontestability Clause: A provision that prevents the insurer from voiding the policy after a certain period, even if there was misrepresentation at the time of application.
• Incurred But Not Reported (IBNR): Claims that have occurred but have not yet been reported to the insurer.
• Indemnity Period: The time period during which benefits are payable under an insurance policy following a loss.
• Inflation Protection: A feature in some insurance policies that automatically adjusts coverage amounts to keep pace with inflation.
• Installment (Hulog): Payment of the insurance premium in regular intervals rather than as a lump sum.
• Insurable Interest (Interes na Nasasaklaw ng Seguro): A stake in the value of the insured item or person, which is necessary to purchase insurance.
• Insurability: The acceptability of a risk to an insurer, often determined through underwriting.
• Insurance (Seguro): A contract that provides financial protection or reimbursement against losses.
• Insurance Broker (Tagapamagitan ng Seguro): An intermediary who arranges insurance contracts on behalf of clients.
• Insurance Commissioner (Komisyoner ng Seguro): The government official responsible for regulating the insurance industry.
• Insured (Nakasiguro): The individual or entity covered by an insurance policy.
• Insurer (Nagbibigay ng Seguro): The company providing insurance coverage.

L

• Lapse (Pagkawala ng Bisa): The termination of an insurance policy due to non-payment of premiums.
• Liability (Panagutan): Legal responsibility for damages or loss.
• Life Insurance (Seguro sa Buhay): A policy that pays out a sum of money on the death of the insured person or after a set period.
• Limit of Liability: The maximum amount an insurer will pay under a policy for a covered loss.
• Loss (Pagkawala): The damage or injury that the insurance policy covers.
• Loss Adjuster (Tagapagtasa ng Pagkawala): A professional who assesses the value of a loss and determines the insurance payout.
• Loss of Use: Compensation for the inability to use property or equipment due to damage covered by the policy.
• Loss Payee: The entity or person named in an insurance policy to receive payment in the event of a loss.

M

• Material Fact: Information that could influence the decision of the insurer in providing coverage or determining the terms of the policy.
• Misrepresentation: Providing false or misleading information to the insurer, which may void the policy.
• Moral Hazard: The risk that the behavior of the insured may change as a result of having insurance coverage, potentially leading to a higher likelihood of claims.

N

• Named Peril: Specific risks or perils explicitly covered by an insurance policy.
• Negligence (Pabayang): The failure to take reasonable care, resulting in damage or injury, which may be covered under liability insurance.
• No-Fault Clause: A policy provision where the insurer pays for losses regardless of who is at fault.
• Non-Disclosure: The failure to disclose a material fact, which may void the policy.
• Non-Life Insurance: Insurance coverage that does not involve life insurance, such as property, health, or liability insurance.
• Notice of Loss (Abiso ng Pagkawala): The formal notification to the insurer that a loss has occurred.

P

• Payment Due (Pagbabayad na Dapat Gawin): The amount that must be paid by the policyholder to maintain coverage.
• Permanent Partial Disability (Bahagyang Kapansanan): A condition where the insured suffers a partial, but permanent, disability that affects their ability to work.
• Permanent Total Disability (Kabuuang Kapansanan): A condition where the insured is permanently unable to work due to a total disability.
• Peril (Panganib): A specific risk or cause of loss covered by the insurance policy.
• Payout: The amount paid by the insurer to the insured or beneficiary in the event of a claim.
• Policy (Polisiya): The contract between the insurer and the insured, outlining the terms, conditions, and coverage.
• Policy Number (Numero ng Polisiya): A unique number assigned to an insurance policy for identification.
• Policy Owner (May-ari ng Polisiya): The person or entity that owns the insurance policy.
• Policyholder (May-ari ng Polisiya): The individual or entity in whose name the policy is issued.
• Policy Period: The duration of time the insurance policy is in effect.
• Premium (Prima): The amount paid by the policyholder to the insurer for coverage.
• Premium Rate: The cost of insurance coverage, often expressed as a percentage of the insured value.
• Premium Notice: A reminder sent to the policyholder indicating that a premium payment is due.
• Property Damage (Pinsala sa Ari-arian): Physical damage to property, which may be covered under various types of insurance policies.
• Pro-Rata: A proportional adjustment of insurance coverage or premium based on time or value.
• Proposal (Mungkahi): A formal offer or application for insurance coverage.
• Proposal Form: The document completed by the applicant providing details needed by the insurer to assess the risk.

R

• Reinstatement (Pagbabalik sa Dati): The restoration of a lapsed insurance policy after the overdue premium is paid.
• Reinsurance (Muling Seguro): Insurance purchased by an insurance company from another insurer to mitigate risk.
• Renewal (Pagpapanibago): The continuation of an insurance policy for another term after the initial term expires.
• Risk (Panganib): The possibility of a loss occurring that is covered by the insurance policy.
• Risk Profile: An assessment of the risk associated with insuring an individual or entity.

S

• Salvage: The remaining value of an insured item after a total loss, which may be retained by the insurer.
• Settlement (Pag-aayos ng Paghahabol): The resolution of a claim, resulting in payment to the insured or claimant.
• Subrogation (Pagpapalit ng Karapatan): The process by which an insurer seeks reimbursement from the responsible party after paying a claim.
• Sum Insured (Halagang Nasasaklaw): The maximum amount payable by the insurer in the event of a covered loss.

T

• Term (Panahon): The duration for which the insurance coverage is provided.
• Third-Party (Ikatlong Partido): An individual or entity that is not the insured or the insurer but is involved in a claim.
• Third-Party Liability (TPL) (Panagutan sa Ibang Partido): Insurance coverage that protects the insured against claims made by a third party.
• Total Loss (Kabuuang Pagkawala): A situation where the insured property is completely destroyed or damaged beyond repair.

U

• Underwriting (Pagsusuri ng Seguro): The process by which an insurer evaluates the risk of insuring an applicant and determines the terms of the policy.
• Unearned Premium: The portion of the premium that represents the period of coverage that has not yet occurred.
• Utmost Good Faith: A fundamental principle of insurance requiring both parties to act honestly and disclose all relevant information.

V

• Voidable Contract: A contract that may be declared invalid due to certain circumstances, such as misrepresentation.

W

• Waiting Period (Panahon ng Paghihintay): The period after the policy is in effect but before coverage begins.
• Waiver: The voluntary relinquishment of a known right, often in the context of insurance claims.
• Warranty (Garantiya): A promise or guarantee made by the insured regarding the conditions of the policy.

Easily Navigate Your Policies

Understanding insurance terms is essential for making informed decisions about your coverage. This guide breaks down the key terms you'll encounter, giving you the clarity and confidence needed to navigate your policies with ease. The more you know about your insurance, the better equipped you are to protect what matters most.

At Reliable Insurance Brokers, we're committed to guiding you through every step of securing the right coverage. Whether you have questions or need further assistance, we're here to ensure you fully understand your insurance policy and have the protection you need. Reach out to us today to discuss how we can help you make the best choices for your insurance needs.

Contact Information for Inquiries and Support

Should you have any questions or require further assistance in choosing the right non-life insurance for your needs:

• Call: +63 2 8631 9285 to 86
• Mobile: +63 917 138 5120
• Email: info@reliable-insurance.ph
• Messenger: https://m.me/reliable.insurancebrokersph

Note

This guide is for informational purposes only and is subject to change. Insurance policies and regulations may vary, and it’s always best to consult with us directly for any questions regarding your insurance needs. We’re here to provide tailored advice, ensure your coverage is up-to-date, and meet your specific requirements.