INDEMNITY:
The principle of indemnity is to place the Insured in the same financial position after a loss as that which applied immediately before the loss. That is, the Insured does not receive “new for old”. The potential recovery that the Insured has under a Contract of Insurance (policy) which is payable by the Insurer in the event of a claim.
INDUSTRIAL SPECIAL RISKS:
This embracive policy typically protects the Insured against losses involving assets and business interruption arising from physical loss or damage to the property used in the business.
INFRINGEMENT OF COPYRIGHT:
A specialist market exists to cover claims against authors for infringement of copyright in a variety of areas.
INHERENT VICE:
This term refers to a quality inherent in goods or their packing which produces deterioration or loss or damage to the goods without the assistance of another party and by its own action, eg weevils in flour.
INSURABLE GROSS PROFIT:
This term is used in the Business Interruption policy and comprises Net Profit plus the total of all expenses which will not necessarily diminish proportionally with a reduction in turnover or production, eg rent and rates. This is calculated by adding Turnover and Closing Stock less the sum of Opening Stock and the uninsured Working Expenses (ie, the variable costs).
INSURABLE INTEREST – GENERAL INSURANCE:
The subject matter of the insurance which is protected by the Contract of Insurance (Policy) and in which the Insured has a financial or pecuniary interest at the time of loss.
INSURABLE RISK:
Risk that is capable of being Insured by an Insurer who assumes the risk from the Insured.
INSURED (CLIENT):
Is a consumer (customer) who has purchased a financial product or seeks advice in respect of a financial product.
INTERMEDIARY:
Either an AFS Licensee, Authorised Representative or their employees.