Act of God - This term is used to define an event that occurs without human involvement and which could not reasonably have been foreseen or avoided. Basically "Natural causes directly and exclusively without any human intervention and that could not have been prevented by any amount of foresight and pains and care reasonably to have been expected."

Age Limit - Most travel insurance policies will specify maximum age for which insurance cover can be provided. This is usually 65 years of age, It does not mean that it is impossible to obtain cover after this age, far from it, a large number of insurers will continue to provide cover after this age. Sometimes though, it will not be so easy to obtain annual cover, single trips may have to be purchased.

ABTA - Association of British Travel Agents - members provide financial protection for their customers so if your holiday company fails you can continue with your holiday. It is a good idea to make sure that any Travel Agent that you use are ABTA bonded before you part with any money. Also remember, that failure of your Travel Agent is not a peril that will be covered by your insurance policy.

Additional Premium - sometimes, an additional premium may be requested by the insurance company.  This is usually because the insurer has calculated that there is an increased chance of a claim.

Annual Multi Trip - This type of policy is a good idea for persons who travel abroad on a regular basis. To see if it is a good idea for you, simply calculate the number of trips you are thinking of making abroad in the next 12 months, obtain a Travel Insurance quotation for the short period times and then compare it to the annual quote. You have to be a little careful with this type of cover as usually, there will be a maximum duration per trip, perhaps 30 days. If you intend to Travel for longer than this amount of time, always check with the insurer.

Backpacker Travel Insurance - a number of insurance companies now offer this type of cover, it is a basic form of insurance contract with lower sums insured aimed at younger persons travelling “light”.  It will not be suitable for most people and you should check the insurance policy wording to make sure that the limits are adequate for your needs.

Contract - A legally binding agreement between two parties in which there needs to be both an offer and an acceptance. Insurance is a contract between the insurer and the insured.  Your Contract with an Insurance company will be formed when they offer you a policy and you agree to pay the premium. They will then issue you with a policy document.

Contingency - This is a name given by insurers for an undefined peril or event which may be covered by your insurance policy if it is listed in the policy wording. Medical Expenses incurred whilst on Holiday is usually a contingency covered by your insurance policy.
 

Contribution - The principle of contribution will apply where a risk is insured on more than one insurance policy. An examplw would be a watch lost on holiday, The watch may be covered by both a Travel & a Home Insurance Policy. In this case both insurers will pay towards the loss.

Cover Note - A document giving temporary evidence of cover while the policy and certificate are being prepared. Cover notes are usual in motor insurance where evidence may be required by the police and to obtain road tax.

Holiday Insurance - This type of Insurance ( also known as Travel Insurance can be arranged on either a short term or an annual basis.
The policy will cover certain perils connected with holidays. Usually this includes cover for the costs of cancellation, personal accident, medical treatment abroad and lost or stolen luggage.

Insurance Illustration - A printed example of how much a particular investment may be worth at a date in the future.

Travel - An Insurance policy that covers both holidays and business trips. The risks that are usually covered included; Cancellation & Curtailment, Medical Expenses, Travel Delay, Baggage. Policies can be purchased on a short term or an annual basis

Deductible - this is another term for Excess and you may find it used instead of that term in your policy wording.

Declaration - The declaration is usually found at the end of the insurance proposal form, it usually has to be signed by you either in person or electronically if you have purchased your policy via the Internet. By signing the declaration, you are indicating that certain facts are true and accurate.

Duty of Disclosure - You have a duty to disclose to your insurance company any material fact which would likely affect the insurers assessment of your insurance proposal . Failure to disclose a material fact to an insurance company will almost certainly result in a claim being refused. This does work both ways as the insurance company are not allowed to withhold information from you.

Excess - your policy excess is the portion of the loss that you must pay your self. Most insurance policies have a compulsory excess, sometimes you can elect for a higher amount and receive a discount.  If you make a claim for £250.00 and you have an excess of £50.00, you will receive £200.00.

Exclusion - a list of exclusions will be found in your insurance policy and if any are significant or unusual, they should be disclosed to you before you buy your insurance contract.
Exclusions will limit your policy cover, most are fairly standard such as War & Terrorism

Holiday Insurance - Holiday & Travel Insurance are the same thing, some companies use one term some the other. It is given to a policy or group of policies that cover persons whilst they are travelling. Cover can also be provided for persons travelling within the United Kingdom Most insurers follow a standard set of perils which include, Cancellation & Curtailment, Medical Expenses, Baggage, Personal Liability etc.

Indemnity - This is a technical word used by insurers, if you are granted an Indemnity by the insurer, it means that they have agreed to pay your claim under the terms and conditions of your policy wording. The principle of Indemnity is to try to place you in the same position after a claim as you were in before it.

Insurer - A name given to specify your insurance company or underwriter. An insurer has to be authorised and further registered by the Financial Services Authority.

Multi Trip Insurance - This is a term usually given to an annual insurance policy that will cover a number of trips providing each trip is not longer than the specified time.  It is usual that each trip will not be in excess of 30 days.

Policy Holder - The person in whose name the policy has been issued. It is usual to issue a Travel Insurance policy in one name then list the other persons travelling on the same trip.  Sometimes if you request a quotation for a “ Family” discounts can be obtained

Period of Insurance - This is you period of cover and will usually be specified in days. It will be for the duration of your trip and during this time, if a valid claim occurs, you will be entitled to a payout.  If you buy a short term travel insurance policy and for reasons beyond your control, your policy over runs, you may find that your policy will be extended free of charge. Don’t rely on this though, always check your policy wording.

Policy Document - This document is your contract between your self and the insurance company. It will outline all of the events that you are insured for as well as all of the terms & conditions and obligations. It is a Legal Document and should be read as such.. It will also state the premium you have paid or agreed to pay.

Premium - This is the term used for the cost of your insurance cover.

Risk - a term for either the peril for which insurance is provided, or the subject matter of insurance, or the uncertainty of possible loss.

Single Trip Insurance - This is the most popular form of travel insurance.  It provides cover for single trips and the premium is calculated on the number of persons travelling, the destination and the number of days travel required.

Ski Insurance - this is not really a Travel Insurance in its own right, it is usually bolted on to a standard insurance package to provide extra covers for persons going skiing.  Obviously, the premium will be higher, for one thing, skiing is a fairly high risk activity and the chances of needing medical insurance are increased. Whilst this policy will include many extras, the one thing it will not cover is lack of snow.

Third Party - This is a term given to a person that is trying to make a claim from you. Not normally used a great deal in Travel Insurance but most policies do cover Personal Liability Insurance

Travel Insurance - As above, can also be called Travel Insurance, this type of policy gives cover to person travelling within the United Kingdom and abroad.