Insurance glossary

I

Indemnity

The principle by which insurance policyholders are put in the same financial position after a loss as they were immediately before it.

Insurance

An agreement under which individuals, businesses, and other organisations, in exchange for payment of an insurance premium, are guaranteed indemnity for losses resulting from certain events specified within the contract of the policy.

Insurance Premium Tax (IPT)

This is a Government tax charged as a percentage of insurance premiums.

Insured car

The insured car as specified by its registration mark on your current certificate of motor insurance. Some motor insurance policies insure the vehicle, and some insure the driver.

Insured Value

This is the amount of money that a client will insure their vehicle for.

Insurer

The party to the insurance contract who promises to pay losses or benefits, usually an insurance company.

Introducer

These can be either Individuals, companies or websites that contain information regarding specific products or services and 'effectively, as the name suggests, introduce clients to the lender. Introducers usually receive a commission for the of the business that results from them.