Insurance — glossary

Voluntary vehicle insurance against damage specified in the contract, e.g. damage or theft. The scope depends on the selected variant.

In practice: Compare the repair method, parts valuation rules, deductible and exclusions. The AC abbreviation itself does not guarantee identical protection.

Find out more: PZU - motor insurance.

Cover that arranges and pays for specific assistance, such as towing, plumbing or travel support.

In practice: Check service limits and how to contact the support center. Ordering the service yourself may require prior consent.

Find out more: PZU – how assistance works.

Transferring certain rights to insurance benefits to another entity, e.g. a bank securing loan repayment. The scope results from the assignment documents.

In practice: Check who will receive the payment and whether the bank's consent is needed to settle the damage. An assignment is different from a power of attorney.

Find out more: Financial Ombudsman - assignment in insurance.

Damage threshold below which the insurer does not pay compensation. Once it is exceeded, the integral deductible itself does not, as a rule, reduce the payment.

In practice: At the threshold of PLN 300, minor damage may not be covered by payment. Check the exact rules for exceeding the threshold in the General Terms and Conditions.

Find out more: Financial Ombudsman - home insurance.

The value specified in the contract that is subtracted from the compensation, e.g. a fixed amount or percentage. In practice, it is a form of own contribution.

In practice: If the deduction is PLN 200, PLN 1,300 remains of the agreed compensation of PLN 1,500, before any other contractual limitations.

Find out more: Financial Ombudsman - home insurance.

A waiting period during which protection for specific events does not yet apply or is limited. The method of calculation and exceptions are specified in the contract.

In practice: Do not equate the date of purchase of the policy with full coverage. Check the grace period separately for each risk you are interested in.

Find out more: Allianz - grace period and terms of protection.

The process of determining the circumstances of the event, the insurer's liability and the amount of compensation or benefits due. It may include document analysis and visual inspection.

In practice: Liquidation does not only mean repair. Keep the case number, correspondence and justification for the decision.

Find out more: PZU – claim reporting and settlement.

Determining the amount of property insurance above its value. A higher premium does not automatically mean compensation that exceeds the actual loss.

In practice: Don't inflate your value just to expect a bigger payout. Use the valuation method indicated in the contract.

Find out more: PZU – sum insured.

A situation in which the sum insured for the property is lower than its value determined according to the terms of the contract. It may mean insufficient protection after a damage.

In practice: Update equipment values ​​after major purchases. Any proportional reduction in compensation depends on the provisions of the specific contract.

Find out more: PZU – sum insured.

Insurance providing benefits for specific consequences of an accident, e.g. health damage or death. The scope and definition of an accident are determined by the contract.

In practice: Check the table of benefits and the sum insured. This amount does not have to be paid in full on every injury.

Find out more: PZU - motor insurance.

Liability insurance for damage caused to other persons, to the extent specified in the regulations and the contract. Occurs, among others: as motor third party liability insurance and third party liability insurance in private life.

In practice: Third party liability insurance is not the same as protecting your own property. Check the type of liability, territory and guarantee amount.

Find out more: PZU - motor insurance.

The amount used to compensate for damage covered by the insurer's liability. It is determined taking into account the extent of the damage, valuation principles and protection limits.

In practice: Zachowaj zdjęcia, rachunki i kosztorysy. They will help you document the amount of the loss and check the calculation presented in the decision.

Find out more: PZU – claim reporting and settlement.

The time during which the insurer is liable for the events covered by the contract. It may differ from the date of conclusion of the contract.

In practice: Check the exact beginning and end of the protection, the conditions related to the payment of the premium and any grace periods.

Find out more: PKO Ubezpieczenia - how to read the General Terms and Conditions.

A document specifying the principles of a given insurance contract, including the scope of protection, exclusions, obligations of the parties and the method of determining benefits.

In practice: Check the version of the General Terms and Conditions specified in the policy. The product name alone is not sufficient as conditions may change between editions.

Find out more: PKO Ubezpieczenia - how to read the General Terms and Conditions.

A document confirming the conclusion of an insurance contract. It contains the most important arrangements, e.g. the subject of protection, its period, the sum insured and the premium.

In practice: Read the policy together with the general terms and conditions and additional arrangements. Check the insured person's details and the date of commencement of protection.

Find out more: PZU - policy and persons in the contract.

The insurer transfers part of the risk to another company under an agreement concluded between them.

It serves to share risk between institutions. It is not another policy that the customer must purchase on his own.

In practice: First of all, check your own contract and the entity responsible for the payment.

Source: KNF - insurance concepts.

A claim for reimbursement of benefits paid by the insurer, when applicable regulations and circumstances provide for it.

In certain situations, the payment of compensation to the injured party does not end the liability of the person from whom the insurer may demand reimbursement. The basis of the claim depends on the type of recourse.

In practice: After receiving the request, check its basis and the event it concerns.

Source: Financial Ombudsman - insurance recourse.

Price of insurance cover, payable once or in installments according to the contract. Its amount depends, among others, on: on the scope of protection and risk assessment.

In practice: Compare the cost for the entire protection period. A lower installment does not necessarily mean a cheaper policy.

Find out more: PZU - premium and contract terms.

The upper limit of the insurer's liability in third party liability insurance. It may result from the contract, and in the case of compulsory insurance, also from regulations.

In practice: Determine whether the limit applies to one event or the entire coverage period, and what damages it covers.

Find out more: UFG - regulations regarding compulsory insurance.

An amount specified in the contract which, depending on the product, sets the upper limit of liability or is used to calculate the benefit.

In practice: Check separate limits for individual events. The payout does not have to be equal to the entire insurance sum.

Find out more: PZU – sum insured.

Contractually due action by an insurer after a covered event, e.g. payment of a specific amount or arranging assistance.

In practice: In personal insurance, the payment may depend on an agreed sum or table of benefits, and not on the cost of repairing the item.

Find out more: Ministry of Finance - insurance contract and art. 805 of the Civil Code.

A person or entity that enters into a contract with an insurer and is obligated to pay the premium. You can insure yourself or another person.

In practice: In the case of a family policy, check separately who concludes the contract and who is covered.

Find out more: PZU - policy and persons in the contract.

A contract of protection in the event of specific events, e.g. death, illness or loss of job. When financing, it may protect the client, the creditor or both to varying degrees.

In practice: The payout is determined by the terms of protection, exclusions and the sum insured, not the name of the package itself. Check the validity of the policy, the premium amount and cancellation rules. Insurance does not automatically cover every unpaid installment.

An agreement providing for benefits following events related to the life of the insured person, specified in the terms of coverage.

The variants differ in the covered events, add-ons and method of determining the benefit. Not every life insurance policy works the same.

In practice: Check the beneficiaries, the benefit amount, grace periods and exclusions.

Source: KNF - types of insurance activities.

Protection of the house or apartment specified in the contract against specified events and their property consequences.

The scope may include various building elements, equipment or additional risks. The name of the policy itself does not mean that all damages will be covered.

In practice: Check the subject of protection, the amount, exclusions and bank requirements for the loan.

Source: Financial Ombudsman - home insurance.

Insurance covering specific costs or assistance related to the protection of the legal interests of the insured person.

The scope of matters, limits and method of providing assistance result from the terms of the policy. It does not mean unlimited coverage for every dispute.

In practice: Check the types of cases covered, the cost limit and the rules for selecting a representative.

Source: KNF - legal expenses insurance.

Policy covering selected risks related to the trip, e.g. medical costs, assistance, luggage or third party liability insurance. Not every variant includes all of these elements.

In practice: Adjust the coverage to your country, length of trip and activity. Sports or chronic diseases may require additional extension.

Find out more: Financial Ombudsman - travel insurance.

Protection in the event of loss of employment meeting the conditions specified in the insurance contract.

The benefit, payout time and required circumstances depend on the variant. Not every form of termination of employment must be protected.

In practice: Check the grace period, exclusions, documents and the limit on the number of benefits.

Source: Polish Financial Supervision Authority - types of insurance risks.

A person whose life, health or property interest is covered by insurance. He or she does not have to be the same person who concluded the contract and pays the premium.

In practice: In the group policy, check when you join the protection and what obligations apply to you personally.

Find out more: PZU - policy and persons in the contract.

Part of the damage that, according to the contract, you cover yourself. It can be determined as an amount, a percentage or a combination of both.

In practice: When comparing offers, calculate the cost of the deductible for a sample claim, instead of assessing only the amount of the premium.

Find out more: Financial Ombudsman - home insurance.

A person or entity designated as entitled to receive benefits in the event of the insured's death, in accordance with the terms of a given contract.

In practice: After changes in the family situation, check whether the indications are current and the shares assigned to individual beneficiaries.

Find out more: PZU - policy and persons in the contract.

Valuation based on the cost of restoring the property to a new condition with similar parameters, in accordance with the policy rules, without deducting technical wear and tear.

In practice: Check whether the contract makes such settlement dependent on reconstruction, purchase or presentation of specific documents.

Find out more: PZU - value definitions in the General Terms and Conditions.

In property insurance, it is usually the replacement value less technical wear and tear. The detailed method of determining it is specified in the insurance conditions.

In practice: Compare this variant with the new value. With older equipment, the difference in valuation method may significantly affect compensation.

Find out more: PZU - value definitions in the General Terms and Conditions.

Circumstances or events for which the insurer is not liable under the terms specified in the contract and regulations.

In practice: Check exclusions regarding planned activities and insured property. The mere occurrence of damage does not determine payment.

Find out more: PKO Ubezpieczenia - how to read the General Terms and Conditions.

A set of events, risks and benefits covered by a specific contract. It depends on the policy variant and selected extensions.

In practice: Two policies with a similar name may protect against different events. Set up coverage, limits and exclusions before you compare premiums.

Find out more: PKO Ubezpieczenia - how to read the General Terms and Conditions.

An event specified in the contract, the occurrence of which may trigger the insurer's liability. This may be, for example, flooding, an accident or an indicated illness.

In practice: The definition from the relevant General Terms and Conditions is important. The common understanding of an event does not always correspond to the terms of a specific policy.

Find out more: Generali - dictionary of terms.

Providing the insurer with information about the incident and claim, in the manner provided for a given policy. Starts handling the case.

In practice: Prepare the policy number, description of the incident and available evidence. Confirm receipt of the application and check what additional documents are needed.

Find out more: PZU – claim reporting and settlement.