• Common Questions Topics

Glossary

• Assessment

  The document prepared by a Case Manager for the ISO after a complaint has been investigated.

• Avoidance

  If a policy is avoided it means it is treated as though it never existed. This is a common law remedy available to the company in certain circumstances. more

• Deadlock

  This is when you have come to the end of the company's internal complaints procedure and the complaint cannot be resolved. It is at this stage that you can bring a complaint to this Office.

• Disability

  This depends on the policy wording. It is not a medical definition but a policy definition. Please read your policy for details.

• Duty of disclosure

  You have a duty to give the company all the information it needs to know when deciding if it can offer you insurance. This duty arises when you take out the insurance and, for house, contents and vehicle insurance, at every renewal of your policy. If you do not disclose all material information, the company is entitled to avoid the policy and decline to consider your claim. more

• Endorsement

  An alteration to the standard terms and conditions of the policy, which forms part of the contract between you and the company.

• Excess

  A fixed amount you must pay when making a claim. It represents a portion of the loss which is not covered by the company. The company will pay the additional claim costs.

• Ex gratia payment

  A payment made by the company to you, when it does not have to do so under the terms of the policy.

• Indemnity value

  This is the value of the item at the time of the loss. Payment of the indemnity value is designed to put you in the same financial position you were in immediately before the loss occurred. Also see Market value.

• Insurable interest

  This refers to the fact you must own or have some other interest in the property/item which is insured under the policy.

• Insured

  Someone who has an insurable interest in the property covered by the policy.

• Insurer

  The company providing the insurance cover.

• Locked-in period

  The period in personal superannuation plans during which funds can only be accessed in limited circumstances.

• Market value

  The value of an item immediately before a loss occurs, taking into account wear and tear and depreciation. Also see Indemnity value.

• Material information

  This is any information which would affect the insurer's judgement about whether to accept a particular risk and, if so, on what terms. Examples of information an insurer regards as material include: details of traffic and criminal convictions; previous claims history; previous avoidance or cancellation of insurance by an insurer; and the applicant's medical history.

• Maturity

  The end of the term of an endowment insurance contract.

• Modifications

  Additions to a vehicle which alter it from the manufacturer's specifications e.g. mag wheels, bodykit.

• Participant

  A company which belongs to the ISO scheme.

• Premium

  The money paid by you to the company for the cover provided by the policy.

• Proposal

  The application you complete by telephone or in writing when you arrange the insurance. It contains questions designed to obtain full information about you and what you want insured. This information enables the insurer to assess the risk involved and calculate the premium.

• Recommendation

  If you or the company are not happy with the decision in an Assessment, then either of you can request a Recommendation. A Recommendation is a reconsideration of the matter by the ISO. However, a Recommendation will only be issued if new or relevant information is provided or there are proper grounds on which to do so.

• Sum insured

  This is the maximum amount the company will pay in the event of a claim.

• Surrender value

  The amount payable to you when you surrender or cancel a life insurance policy.

• Third party

  Any person other than you and the company.