Glossary

Main insurance terms

Risk in insurance

Uncertain event (which has not yet occurred) affecting an individual, his property or liability.

Insured

Term used to refer to the insured individual. In an individual policy, the policyholder pays the premium and is generally the one who is insured.

Policyholder

Natural or legal person entering into an insurance contract with an insurer.

Incident

Occurrence of an uncertain event resulting in damage.

Damage

Loss, destruction, bodily injury, loss of earnings. Damage may be material (this covers deterioration, destruction or theft of property), personal (physical injury, etc.), or consequential (financial damage, loss of use of property, etc.).