Insurance can include unfamiliar words, abbreviations and technical terms. This Insurance Glossary from InsurancePolicy.ae explains common car, health, medical, travel, life, home and business insurance terms in simple language.
Use the A–Z glossary below to understand terms such as TPL, TPA, NCD, premium, excess, deductible, copay, coinsurance, comprehensive insurance, agency repair, policyholder, beneficiary, underwriting and more.
Important: Insurance coverage, limits, exclusions and definitions can vary between insurers and policies. Always check your policy wording, schedule and table of benefits for the terms that apply to your insurance.
An unexpected event that may result in injury, damage or loss and may lead to an insurance claim if covered by the policy.
Unexpected and unintended physical damage to insured property or a vehicle, subject to the policy’s terms and exclusions.
A benefit that may be payable following a covered accident, depending on the insurance policy.
A person, other than the main driver, who is permitted to drive an insured vehicle subject to the policy terms.
A motor insurance benefit that allows eligible covered repairs to be carried out at the vehicle manufacturer’s authorised dealer or agency, subject to the policy terms.
The maximum total amount an insurer will pay for specified covered claims during a policy period.
The maximum amount payable for eligible covered expenses during one policy year. This term is commonly used in health and medical insurance.
Travel insurance designed to cover multiple eligible trips during a policy year, subject to limits on trip duration and other policy conditions.
Another term commonly used for motor or car insurance.
A person or entity designated to receive an insurance benefit, commonly associated with life insurance.
A service, treatment, payment or other coverage provided under an insurance policy, subject to its terms.
The maximum amount payable for a particular covered benefit.
Physical injury to a person. In motor and liability insurance, coverage may apply to legal liability for bodily injury to third parties.
An insurance intermediary that helps customers understand, compare and arrange suitable insurance products.
Insurance designed to cover eligible physical damage to a building or structure against specified insured risks.
A broad category of insurance designed to protect businesses against various risks such as property damage, liability, employee-related risks, cyber incidents and other insured exposures.
The termination of an insurance policy before its scheduled expiry date, subject to the policy terms and applicable rules.
CAR commonly stands for Contractors’ All Risks insurance. It is designed for risks associated with construction projects, subject to the policy’s coverage and exclusions.
Insurance for vehicles that may provide third-party liability and/or cover for damage to the insured vehicle, depending on whether third-party or comprehensive insurance is selected.
A health insurance arrangement where an eligible network healthcare provider settles approved covered expenses directly with the insurer or administrator, subject to applicable copays, deductibles and other conditions.
A document that provides evidence of insurance coverage.
A medical condition that is persistent, recurring or long-lasting, subject to the definition used by the relevant health insurance policy.
A formal request to an insurer for payment, reimbursement, repair or another covered benefit following an insured event.
The person or entity making an insurance claim.
The amount the insured is required to contribute toward an eligible claim before or alongside the insurer’s payment, depending on the policy.
A cost-sharing arrangement where the insured pays a specified percentage of an eligible medical expense and the insurer pays the remaining covered portion, subject to policy terms.
Insurance designed to cover risks faced by businesses and commercial organisations.
Motor insurance that generally provides third-party liability coverage as well as cover for eligible loss or damage to the insured vehicle, subject to policy terms, limits and exclusions.
A medical condition present from birth. Coverage depends on the health insurance policy and applicable terms.
Insurance designed to cover eligible household belongings and personal contents against specified insured risks.
The fixed amount or percentage an insured person must contribute toward certain eligible healthcare services under a medical insurance policy.
Insurance solutions designed for companies and organisations, potentially including employee medical, liability, property, motor fleet and other commercial insurance.
Health insurance arranged by a company to provide eligible medical coverage to employees and, where applicable, their dependants.
A temporary replacement vehicle that may be provided while an insured vehicle is undergoing eligible covered repairs, subject to policy terms.
The protection or benefits provided by an insurance policy.
Insurance designed to cover specified cyber-related risks, which may include data breaches, cyber incidents, business interruption and liability, depending on the policy.
An amount the insured must pay toward an eligible covered claim or medical expense before the insurer pays the applicable covered amount.
Health insurance benefits for eligible dental treatment, subject to the plan’s limits, network and exclusions.
A person, such as a spouse or child, who may be eligible for coverage under another person’s health insurance policy.
The reduction in the value of an asset over time due to factors such as age, condition, use and wear.
Medical tests used to help identify or monitor a medical condition, such as blood tests or imaging, where covered.
An arrangement where an eligible healthcare provider bills the insurer or TPA directly for approved covered treatment rather than requiring the insured to pay the entire bill and seek reimbursement.
The network of healthcare providers where eligible insured members may access approved covered services through direct billing.
EAR commonly stands for Erection All Risks insurance. It is generally designed to cover specified risks associated with installation and erection projects.
Medical treatment required for an urgent or potentially serious medical condition, subject to the policy’s definition and terms.
Medical insurance arranged to provide eligible healthcare coverage for employees.
Insurance designed to protect an employer against specified legal liabilities arising from employee injury or illness connected with employment, subject to policy terms and applicable law.
An official amendment or addition that changes certain terms, information or coverage in an existing insurance policy.
The portion of an eligible insured loss that the policyholder must pay or bear according to the policy terms.
A circumstance, event, condition, treatment, property or type of loss that an insurance policy does not cover.
The date on which insurance coverage ends unless the policy is renewed or otherwise extended.
Health or medical insurance designed to provide eligible healthcare coverage for multiple members of a family under the applicable plan structure.
Motor or property coverage for specified losses caused by fire and/or theft, depending on the insurance policy.
The person or entity insured under an insurance contract.
Insurance designed to cover multiple vehicles owned or operated by a business or organisation under a fleet arrangement.
Coverage for eligible loss or damage caused by flooding, where included in the policy and subject to its terms and exclusions.
A doctor who provides general medical care and may serve as the first point of contact before specialist treatment.
An additional period allowed for a required action or payment under certain policies. The meaning and availability of a grace period depend on the particular insurance product and policy terms.
Health insurance arranged for a defined group, commonly employees of a company, with coverage determined by the selected policy.
Life insurance arranged for a defined group of people, commonly employees of an organisation.
Insurance designed to cover eligible healthcare costs such as consultations, hospitalisation, medicines and other medical services according to the selected plan.
The hospitals, clinics, pharmacies and other healthcare providers included in an insurance plan’s provider network.
Health insurance and medical insurance are often used interchangeably in everyday conversation. In practice, what matters is the actual coverage provided by the policy, including benefits, exclusions, limits, network, copays and deductibles.
Always compare the actual policy terms rather than relying only on the product name.
Insurance designed to protect a home, its contents or both against specified insured risks.
Admission to a hospital for medical treatment. Health insurance coverage depends on the policy’s inpatient benefits and applicable terms.
The hospitals available within a health insurance plan’s provider network.
An insurance principle intended, where applicable, to compensate an insured for a covered loss in accordance with the policy rather than place them in a better financial position than before the loss.
A health insurance policy designed to cover an individual rather than a group of employees.
Medical treatment involving admission to a hospital, typically involving an overnight stay or treatment classified as inpatient under the policy.
Inpatient treatment generally involves hospital admission, while outpatient treatment generally involves medical care without hospital admission.
Coverage and definitions vary between health insurance policies.
A recognised financial or other legally relevant interest in the person or property being insured, as applicable to the type of insurance.
A contractual arrangement under which an insurer provides specified financial protection against covered risks in return for a premium.
A person or entity authorised to represent an insurer in accordance with the applicable arrangement and regulations.
An intermediary that assists customers with insurance products, comparisons, placement and related services.
A request made under an insurance policy for a covered benefit following an insured event or eligible expense.
The amount charged for providing insurance coverage.
The person, organisation, vehicle, property or other subject protected under an insurance policy.
The value stated or determined for an insured asset according to the policy.
The insurance company that provides coverage and assumes the insured risk under the policy.
A legal responsibility or obligation that may arise from causing injury, damage or another covered loss to another person or entity.
Insurance designed to protect against specified legal liabilities to third parties.
The maximum amount an insurer will pay for a covered liability under the applicable policy terms.
Insurance designed to provide an agreed benefit following specified insured events relating to the life of the insured person, subject to policy terms.
The estimated value of an asset, such as a vehicle, in the market at a particular time, determined according to applicable valuation criteria.
Health insurance benefits relating to eligible pregnancy and childbirth expenses, subject to applicable limits, waiting periods, networks and other terms.
Insurance designed to cover eligible healthcare and medical expenses according to the selected policy.
The terms medical insurance and health insurance are commonly used to describe insurance that helps cover healthcare expenses. The exact scope of protection depends on the individual policy rather than simply whether it is called “medical” or “health” insurance.
Professional liability insurance designed for specified liabilities arising from medical professional services, subject to the policy terms.
A standard used to determine whether a healthcare service or treatment is clinically necessary according to applicable policy criteria.
The process of assessing medical information and health-related risk when determining coverage or policy terms where applicable.
Motor insurance arranged to cover multiple business vehicles under a fleet policy or arrangement.
Insurance for vehicles. Depending on the selected coverage, it may provide third-party liability only or broader comprehensive protection.
Travel insurance designed to cover multiple eligible trips during a specified policy period, subject to maximum trip durations and other conditions.
Natural events such as floods, storms or other specified events. Coverage depends on whether the particular peril is included under the policy.
NCD stands for No Claims Discount. It is a discount that may be available based on an eligible claims history, subject to the insurer’s criteria.
In health insurance, a network is the group of healthcare providers that have arrangements with the insurer or TPA for eligible services.
A hospital included in a health insurance plan’s approved provider network.
Motor vehicle repairs performed by an approved non-dealer or non-agency repair facility, depending on the insurance policy.
See NCD – No Claims Discount.
Optional motor insurance protection that may cover eligible incidents occurring during permitted off-road use, subject to the policy’s conditions and exclusions.
An extension that may provide specified motor insurance coverage while an insured UAE vehicle is driven in Oman, subject to policy terms and territorial requirements.
Health insurance benefits for eligible eye examinations, glasses, contact lenses or other optical services, depending on the selected plan.
Medical treatment that does not require hospital admission, such as eligible doctor consultations, tests or prescribed medication.
Loss or damage to the insured person’s own vehicle. Own-damage protection is generally associated with comprehensive motor insurance rather than basic third-party liability coverage.
PA stands for Personal Accident. It may provide specified benefits following covered accidental bodily injury, disability or death, subject to the policy.
Damage to insured property that does not constitute a total loss under the policy.
Motor insurance protection that may provide specified personal accident or liability benefits relating to passengers, depending on the policy.
A health insurance benefit covering eligible prescribed medicines according to the plan’s formulary, network, limits and cost-sharing requirements.
The insurance contract that sets out the coverage, benefits, limits, conditions, exclusions and responsibilities of the parties.
The person or organisation that owns or holds the insurance policy.
The period during which an insurance policy is effective.
A document forming part of the policy that normally contains important information such as the insured’s details, coverage period, sums insured, selected benefits and other policy-specific information.
The document containing the detailed terms, conditions, definitions, exclusions and coverage provisions of an insurance contract.
Approval that may be required from an insurer or TPA before certain healthcare services or treatments are provided.
A medical condition that existed before the start of insurance coverage, as defined by the applicable health insurance policy and underwriting rules.
The amount paid or payable for insurance coverage.
Insurance designed to protect professionals or businesses against specified claims arising from professional services, errors or omissions, subject to the policy.
Insurance designed to provide broad protection for insured property against covered accidental physical loss or damage, subject to stated exclusions.
The hospitals, clinics, pharmacies and other healthcare providers available through a particular health insurance plan.
Insurance designed to protect a business against specified legal liabilities for third-party bodily injury or property damage arising from its activities.
A recommendation or authorisation from a healthcare professional, often a GP, for an insured person to see a specialist or receive another service where required.
A claims method in which the insured pays an eligible expense and later submits the required documentation to seek repayment of the covered amount.
Insurance purchased by an insurance company to transfer or manage part of its own insurance risk.
The continuation of insurance coverage for a new policy period, subject to the insurer’s terms and the policyholder’s acceptance.
A motor insurance benefit that may contribute toward or provide a temporary replacement vehicle following an eligible covered claim.
A temporary vehicle that may be available while an insured vehicle is being repaired following an eligible claim, depending on policy terms.
The possibility of an event occurring that may cause a loss covered or considered by insurance.
A motor insurance service that may provide help following a breakdown or other eligible incident, potentially including towing, battery assistance or tyre-related support.
Damaged insured property remaining after a loss, particularly where an insurer settles a total-loss claim, subject to applicable policy terms and legal requirements.
Travel insurance designed to cover one eligible trip for a specified period.
Insurance products designed to address risks faced by small and medium-sized enterprises.
A medical professional who focuses on a particular field of medicine.
A lower limit applying to a particular benefit or category within the policy’s overall coverage limit.
An amount specified as payable under certain life insurance policies following a covered insured event, subject to the policy terms.
The maximum insured amount stated for particular property, benefits or risks, subject to the policy terms.
A Table of Benefits, often abbreviated as TOB, summarises important health insurance benefits, limits, copays, deductibles and other applicable conditions.
Insurance designed to protect a tenant’s eligible personal belongings and/or specified liabilities, depending on the selected policy.
A form of life insurance providing coverage for a specified period, subject to the policy’s terms.
A person or entity other than the insured and insurer who may be affected by an insured event.
Motor insurance designed primarily to cover the insured’s legal liability for covered injury or property damage caused to third parties. It generally does not cover accidental damage to the insured’s own vehicle.
Legal liability for covered injury, death or property damage caused to another party, according to the applicable policy.
TPA stands for Third-Party Administrator. In health insurance, a TPA may administer services such as provider networks, claims processing and medical approvals on behalf of an insurer.
TPL stands for Third-Party Liability. In motor insurance, TPL generally covers the insured’s legal liability for covered bodily injury or property damage caused to third parties.
TPL generally does not cover accidental damage to the insured’s own vehicle. Broader own-damage protection is generally available through comprehensive car insurance, subject to the selected policy.
TPL insurance focuses on covered liability toward third parties.
Comprehensive car insurance generally includes third-party liability plus eligible loss or damage to the insured vehicle, subject to the policy’s terms, exclusions and excess.
A loss where an insured asset, such as a vehicle, is considered uneconomical or otherwise qualifies to be treated as a total loss according to the insurer’s assessment and policy terms.
Transportation of a vehicle that cannot be driven following a breakdown or covered incident. Towing may be included within roadside assistance or other motor benefits.
Insurance designed to provide specified protection for eligible travel-related risks, potentially including emergency medical expenses, trip cancellation, baggage loss or delay, depending on the policy.
A travel insurance benefit that may cover specified non-refundable expenses when an insured trip is cancelled for an eligible covered reason.
A situation where an asset is insured for less than the value required under the applicable policy basis, which may affect a claim settlement.
A person or insurer responsible for assessing risk and determining whether insurance can be offered and on what terms.
The process used by an insurer to assess risk and determine coverage, pricing and policy terms.
Another commonly used term for motor or car insurance.
An examination of a vehicle’s condition that may be required in certain circumstances for registration, renewal, underwriting or insurance purposes.
An additional amount the policyholder agrees to contribute toward an eligible claim, where such an option is available.
A specified period during which certain benefits may not yet be available under an insurance policy.
The voluntary relinquishment of a particular right or requirement, where applicable under an insurance arrangement.
Motor insurance protection for eligible damage to the vehicle’s windscreen or glass, subject to the policy’s terms.
Insurance designed to cover specified employer obligations relating to employees who suffer work-related injury, illness or death, subject to applicable law and policy terms.
| Abbreviation | Full Form | Simple Meaning |
|---|---|---|
| TPL | Third-Party Liability | Liability protection relating to third parties |
| TPA | Third-Party Administrator | Organisation that may administer health insurance services |
| NCD | No Claims Discount | Potential discount based on eligible claims history |
| PA | Personal Accident | Accident-related personal protection |
| CAR | Contractors’ All Risks | Insurance associated with construction projects |
| EAR | Erection All Risks | Insurance associated with erection/installation projects |
| TOB | Table of Benefits | Summary of health insurance benefits |
| GP | General Practitioner | General medical doctor |
| IP | Inpatient | Treatment involving hospital admission |
| OP | Outpatient | Treatment without hospital admission |
Health insurance and medical insurance are often used interchangeably. Instead of choosing a policy based only on its name, compare its actual benefits, annual limits, provider network, exclusions, deductibles, copays, coinsurance and other conditions.
A copay is an amount or percentage you contribute toward a particular eligible healthcare service.
A deductible is an amount you must pay toward covered expenses before the insurer pays according to the policy structure.
The exact way these apply varies between health insurance plans.
A copay may be a fixed amount or specified contribution for a covered healthcare service.
Coinsurance is generally a percentage of eligible costs shared between the insured and insurer.
Inpatient treatment involves hospital admission under the applicable policy definition.
Outpatient treatment generally takes place without hospital admission.
TPL primarily protects against covered liabilities toward third parties.
Comprehensive insurance generally combines third-party liability with eligible own-vehicle damage coverage.
Agency repair allows eligible repairs through the manufacturer’s authorised dealer or agency where included.
Non-agency repair uses an approved repair facility outside the manufacturer’s official dealership network.
The terms are sometimes used in similar ways to describe the portion of an eligible claim borne by the insured. Their exact meaning and application depend on the insurance product and policy wording.
With direct billing, an eligible network healthcare provider bills the insurer or TPA directly for approved covered treatment.
With reimbursement, the insured normally pays first and subsequently submits a claim for eligible covered expenses.
Public liability insurance generally addresses specified third-party injury or property-damage liabilities arising from business activities.
Professional indemnity insurance generally addresses specified claims arising from professional services, advice, errors or omissions.
Before buying or renewing insurance, review more than the premium. Depending on the type of insurance, important factors may include:
Coverage and benefits
Policy limits and sub-limits
Excesses and deductibles
Copays and coinsurance
Provider or repair networks
Exclusions
Waiting periods
Territorial limits
Optional benefits
Claim requirements
Renewal conditions
Policy wording
Understanding these terms makes it easier to compare insurance options and determine which policy is appropriate for your requirements.
InsurancePolicy.ae helps customers understand and compare insurance options across categories including car insurance, health and medical insurance, travel insurance, home insurance, life insurance and business insurance in the UAE.
Use this glossary whenever you encounter an unfamiliar insurance term, abbreviation or phrase, and always refer to the applicable insurer’s policy wording for the exact definition and coverage.
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