Glossary of Terms
Investment insurance
As defined in Article 5 of the Belgian Insurance Act of 4 April 2014, an investment-linked insurance contract provides a maturity or surrender value that is wholly or partly exposed, directly or indirectly, to market fluctuations.
Fire insurance
Fire insurance is essentially home insurance. It offers much broader protection than fire damage alone, including coverage for storms, natural disasters, smoke, water and electrical faults. Additional risks may be covered as well, with theft being one of the most common.
Coverage
Coverage refers to the risks insured under a policy. It may describe the full scope of risks included in the contract or a specific insured risk.
Sustainability
Sustainability means meeting the needs of the present generation without compromising the ability of future generations to meet their own needs (World Commission on Environment and Development, 1987).
Group insurance
A group insurance plan is a collective policy set up by an employer for all or part of its workforce. It helps employees save towards a supplementary pension, forming part of the second pillar. The employer pays the premiums, and in some cases employees also contribute.
Reinsurance
Reinsurance is a separate agreement between an insurance company and a reinsurer. Through this contract, the insurer protects its own financial position against potential losses arising from the insurance policies it has underwritten for its customers.
Hospitalisation insurance
Hospitalisation insurance reimburses the costs of a hospital stay and related medical expenses. It supplements mandatory health insurance by covering all or a portion of the costs that the patient would normally have to pay out of pocket after collecting statutory compensation from the health insurance fund.
Life insurance
A life insurance policy provides a fixed payout if the insured person dies before the end of the policy term. If the insured is still alive at the end of the term, another agreed upon amount is paid instead.
Natural disaster
Fire insurance automatically covers damage caused by natural disasters. By law, these events include earthquakes, floods, the overflow or backup of public sewers, landslides and ground subsidence.
Premium
As defined in Article 5 of the Belgian Insurance Act of 4 April 2014, a premium is the payment made to an insurer in exchange for covering an insured risk.
Non-life insurance
As defined in Article 5 of the Belgian Insurance Act of 4 April 2014, a non‑life insurance contract provides compensation when an uncertain event occurs that causes financial loss for the insured.
Branch 21
Branch 21 is a life insurance investment product with a guaranteed return. Each contribution earns a fixed interest rate and, depending on the insurer’s results, profit sharing may also be awarded.
Branch 23
Branch 23 is a life insurance investment product with a return that follows the performance of underlying investment funds. These funds typically invest in equities, bonds, cash and cash equivalents, real estate and/or a mix of these asset classes.
Insurer
As defined in Article 5 of the Belgian Insurance Act of 4 April 2014, an insurer is any person or company acting as a contracting party to insurance agreements, regardless of professional capacity and whether actuarial techniques are applied.
Insurance agreement
As defined in Article 5 of the Belgian Insurance Act of 4 April 2014, an insurance agreement, also known as an insurance contract or policy, is an agreement whereby the insurer, in return for a fixed or variable premium, commits to delivering a contractually defined benefit if an uncertain event occurs, provided the insured or the beneficiary has an interest in that event not occurring.
Insurance coverage
When you take out an insurance policy, you and the insurer agree which risks are insured. Coverage is the specific term used for the protection the policy offers. The extent of that protection is outlined in the general and special terms.
This Glossary of Terms contains selected entries from Assuralia’s terminology guide. The full list is available at:
▪ French: https://www.assuralia.be/fr/glossaire
▪ Dutch: https://www.assuralia.be/nl/woordenlijst