On the first article we have discussed about the various common terms of the insurance, however these terms are not enough to describe the whole insurance. Here we will discuss about the other common terminologies of the insurance.Sponsored Links
First party insurance: From the name the character of the insurance can be well judged. Under the first party insurance the insurance policy company will give complete protection to the property and asset of the insurance holder only. The first party insurance is more appropriate in case of the non life insurance. Let’s have an example to have a clear view about it. A builder has insured its building area under insurance. In case of any untoward incident the builder will get the protection for the building are from the insurance company. However the other property which belongs to some third party got damaged within the builders building area will not get the protection under the insurance.Sponsored Links
Liability insurance: Once again a term which is plenty used for the non life insurance. There will be no use of this term under the life insurance. The liability insurance is something where the damaged property and asset will gets coverage. The damaged property may be of the first party or the third party. Irrespective of the party concerned, the damaged properties will get complete protection from the insurance company. Let’s have an example to clearly describe the liability insurance. A person has insured its car, if the car meets an accident the insurance company will pay towards the damage of the car under the insurance policy. However under the liability insurance, if there will be any damage to the third party properties due to the accident it will also get coverage.Sponsored Links
Negligence and gross negligence: It is legal term used in the world of insurance. In order to get the undue advantage if any person or any organization dos some unlawful acts it will be considered as negligence. If the negligence is proved against the person or the organization, the concerned person will be barred to take the advantage form the insurance company. Yes, if there will be any will full misconduct towards the insurance policy it will be considered as gross negligence. Any sort of carelessness reckless disregard for the safety or lives of others will also be considered as a kind of negligence.Sponsored Links
Consequential and liquidated damages: In case of insurance all possible steps should be taken in order to prevent the damage to the property and other assets. However there are certain conditions where the damages to the properties are unavoidable and this sort of damages are called as consequential damages. For an example a house is insured under a policy but due to some natural calamity or some unavoidable reason if a tree falls on the house and it get damaged it will come under the consequential damages. Similarly under the liquated damages a party will gets protection in breach of a contract of the obligation to perform the balance of the contract.