Insurance contract - in our legal system, insurance relations are based on contract as a legal transaction, regardless of whether it is a voluntary or obligatory insurance. The insurance contract creates obligations for both contracting parties the insured undertakes to pay insurance premium, and the insurer undertakes to bear the consequences of the realization of risks
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Insurance policy is a basic document in writing that defines the rights and obligations of the participants in legal relationship and as such it accompanies the insurance transaction.
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Cover note/binder is issued as a statement attesting that insurance is concluded and it contains the most important details from the insurance policy.
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Insurance terms and conditions are a set of clauses in the insurance contract which regulate the rights and obligations and define in detail the relationship between the policyholder and the insurer. General conditions of insurance are brought by the insurer in advance per different types of insurance, while the contracting parties agree upon the special conditions of insurance and stipulate the final content of policy and additional clauses.
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The insurer is a legal person who undertakes, in accordance with the insurance contract, to indemnify against any damage, or to pay the agreed sum to insurance beneficiary or the insured when the subject risk is realized. Taking into account their special social and commercial importance, the insurers’ activities are supervised by state and the insurers must have a licence to carry on insurance activities.
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Insurance broker is an expert, independent and professional counsellor with full insight into all insurance offers on the market (i.e. insurance prices and conditions). Based on this comprehensive approach, the broker selects the best offer and the conditions suited to specific needs of each client.
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Policyholder is a person who concludes an insurance contract with the insurer and has obligation to pay the insurance premium. In life insurances the policyholder who concludes the insurance contract for himself is also the insured.
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The insured is a person whose life, property, etc. are insured. In some non-life insurance types it is the owner of the insured thing, to whom insurer pays the insurance indemnity.
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Insurance beneficiary is a natural or legal person entitled to compensation from the insurance. When the insurance beneficiary is at the same time a policy holder, we are talking about the same person – the insured. However, in insurance contracts concluded in his/her name and for other person’s account, the policy holder is not insurance beneficiary at the same time, and he/she even does not have to be known to the insurer or to the insurance beneficiary; it is sufficient if the method of determining the insurance beneficiary is defined by the insurance contract.
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Insurance premium is the amount paid by a policy holder for insurance. In fact, this is the price of insurance and it is paid in its entirety when the insurance contract is concluded, unless otherwise agreed upon.
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The sum insured is the amount representing the upper value of the insurer’s obligation paid to the insured in case of insured event. It is included in the insurance policy, or the method how it is determined when the insured event occurs is prescribed by the insurance contract or the insurance law. In some cases, it may be exceeded due to costs incurred due to removal or mitigation of damage by order of the insurer.
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Insured event is the occurrence of circumstances that, in accordance with the law or the insurance contract, oblige the insurer to pay damages to the insured or to act in other manner. The insured event is uncertain and independent of the will of the policy holder; this is the event the occurrence of which is the realization of the risk covered by insurance.
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Accident is the event resulting from sudden, unforseen circumstances independent of the will of the insured. It can cause death, bodily inujury, disablement, impaired health, the impairment of work ability.
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Duration of insurance the time frame during which the insured is covered by insurance. The duration of insurance depends on the type of insurance and may last from several months to one year or several decades.
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Expiration is the termination date of an insurance contract, or the period of validity of insurance coverage.
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Waiting period is a period of time at the beginning of the agreed insurance period when the insurer has no or part obligation to the insured if the insured event occurs.
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Franchise is a part of damage incurred by the insured himself/herself, in accordance with the insurance contract. This is a participation of the insured in damage and it can be expressed as an amount of money or a percentage of damage. Franchise can be voluntary, when the insurer allows the policyholder/insured to choose the amount of franchise within the limits defined by insurance practice, or compulsory, when the insurer imposes it at the beginning in a certain amount, in order to accept risk.
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Bonus is a discount in the premium if the insured did not have any damage in the previous insurance period or did not have it in a certain amount. It is calculated annually on payment of premium, in a certain percentage. Bonus is used to adjust premium to a certain risk, because it is proven that the insured who are allowed this discount in advance by the insurer have much less damages than other insured clients.
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Malus is an increase in the premium paid by the insured if at least one damage was reported for which the insured was responsible.
• Are broker services charged separately?
Premija Plus as insurance broker company does not charge clients for its services, but we charge insurance companies.
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• Is any financial loss incurred in case of the termination of insurance contract?
Insurance contract is a binding agreement and each client has rights and obligations to insurance company, the same as the insurance company has rights and obligations to clients. Financial loss exists if the contract is terminated prematurely in accordance with the general conditions of insurance.
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• How do I pay my insurance policy?
You choose payment dynamics when you conclude the contract, and it can be monthly, quarterly, semi-annually, annually or as a one-time payment.
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• What damages are covered by escape of water from installations?
Damages on the insured objects that result from the escape of water from installations, and not damages on installations.
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• Is the number of claims per property insurance policy limited and how many times is it possible to report damage during one year?
There is no restriction of the number of claims, but the sum of amounts paidout in one insurance year per insurance policy may not be bigger than the sum insured.
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• Does travel insurance cover the territory of the Republic of Serbia?
Travel insurance covers only the territory of the Republic of Serbia.
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• Does travel insurance also cover the costs of hospitalization?
The usual package of travel insurance includes necessary medical assistance i.e. directing to a doctor, medical advice, urgent delivery of medications, organizing a visit to a sick child or a loved one, coverage of the costs of treatment, surgery, medications and other, X-ray diagnosis and hospital treatment, if necessary, etc.
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• How many times a year is it possible to report damage in case of casco insurance?
With most insurance companies, the participation stipulated in the insurance policy is taken for the first two reports of damage, and if no participation is stipulated, the client will not pay the costs of damage. For the third and any further damage, the participation is obligatory and its amount depends on the requirements of the insurance company with which the insurance policy was concluded.
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• For MTPL insurance or casco insurance, do I need a car accident police report in order to report damage?
In case of MTPL insurance, you need a car accident police report for material damages exceeding 500 €, and for smaller amounts the filled-out European report is sufficient, if both parties agree.
In case of casco insurance, you need a car accident police report for bigger damages, and also if damage was due to malicious mischief of third parties ( for example, the vandalism of an unknown person in a parking lot).
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• Why is it more favourable to save by life insurance than with a bank?
Insurance is the safest method of long-term saving, where in the event of certain circumstances, such as accident, illness or other unfortunate events, insurance beneficiary receives the sum insured which is three times higher in the most difficult cases, regardless of the number of paid installments. Therefore, the function of insurance is to protect and provide financial security for families and insurance beneficiaries in case of unfortunate events. Also, in addition to the sum insured you will receive profit on the expiry of insurance.
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• What happens in the event of death of the insured during the insurance period?
In the event of death of the insured, insurance company has the obligation to pay the sum insured to insurance beneficiary, if the agreed life insurance covers the death of the insured.
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• What happens if I temporarily stop or delay in payment of life insurance premium?
Your insurance policy can be frozen temporarily over a certain period of time, a so-called „grace period“. If the insured is delayed in payment and fails to make payments even after receiving several reminders, the insurance contract is cancelled, i.e. terminated. If the insured wants to reactivate the insurance policy, he/she can do it within one year from the termination date, provided that he/she has settled all outstanding obligations.
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• Can I raise all the money I have paid in before the expiry of life insurance contract?
As a policyholder/the insured, you are entitled to terminate the insurance contract at any time. In that case, the insurance company will calculate a surrender charge, taking into account the portion of the money you have paid until that time. In the first three years, the client will not get the invested money returned after the termination of the contract.
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• Is it possible to change some elements of the life insurance contract?
On the expiry of insurance year, it is possible to change insurance premium, the method of payment of insurance premium and to conclude aditional insurance coverage or to terminate the insurance contract.
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• If in the case of life insurance contract insurance beneficiaries are indicated on the insurance policy, can they be changed during the con tract period?
Policy holder can change insurance beneficiaries at any time, in writing.
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• For how many years can I conclude a life insurance policy?
The period of insurance depends on the insured person’s age, the type of programme and other parameters. In practice, it is usually concluded for the period of 10 to 25 years, although in some programmes the duration of insurance is 5 to 40 years. In classic mixed insurance, the insured can be 14 to 65 years of age, provided that the insurance must expire at the age of 75.
