Insurance premium is the amount paid by the policyholder for the policy. When it comes to insurance,
the word "premium" means "price".
Policyholder is a person who concludes an insurance contract for his or her own benefit or for the
benefit of another person. If you buy Travel Insurance for yourself and your travel companions, then YOU are the
policyholder.
Insured is a person for whom an insurance contract has been concluded. If you buy accident insurance
for your parents, then they are the insured.
The Beneficiary is the person entitled to be reimbursed for the case.
Deductible is your participation in the insurance, or the part of the risk chosen by you, which you
undertake to cover from your own funds when an accident occurs. For example, 70 euros of deductible means that the insurer would
cover the costs of 930 euros from a car repair worth 1000 euros. The insurer deducts the specified deductible
from the amount of indemnity to be paid.
Insurance Coverage means all the risks specified in the policy against which you are insured. If any of
the risks mentioned in the policy occurs, the insurer shall provide for the payment of indemnity for losses
incurred as a result of the operation of that risk.
Insurance risk is an event beyond the control of the Insured, which is mentioned in the policy and for
which the Insurer intends to pay the indemnity.
Sum Insured is the maximum amount of money you can receive from your insured for each risk specified in
the policy. Each risk will have a different sum insured and you will be able to see it in your policy.
The Insured Event is an event causally related to the insured risk and unforeseen, as well as an event
beyond the control of the Insured.
Insured risks
For the vehicle (CASCO):
New Value is an insured risk that in the event of theft or total loss of a vehicle will result in you
being reimbursed for the amount actually paid for the purchase of the insured vehicle.
Market Value is the amount for which the vehicle is insured. The Insurer will take into account the
value of the vehicle as it was on the day the insured event occurred in order to calculate the indemnity to be
paid to the customer.
Driver and Passenger Accident Insurance provides for compensation to be paid to the driver and
passengers who were in the vehicle at the time of the accident.
Replacement vehicle is a vehicle paid for by the insurer while the customer's insured vehicle is being
repaired after the insured event.
24/7 roadside assistance is a service that the CASCO policyholder is entitled to use free of charge
throughout the policy area. It can be used in cases where it is necessary to refuel, change a wheel, start the
car in winter and other technical assistance.
A Hydraulic shock is the ingress of water into an engine after a car has entered a large puddle or
flooded roadway.
Repair at a dealership - this note on the policy states that repairs will be carried out at a certified
dealership using new car parts.
Accessories - audio/communication systems, roof racks, child seats, bicycle racks and other car-related
items not fitted by the manufacturer are covered with the car.
Bellongings left in the vehicle - personal belongings left in the car cabin or trunk, as well as sports
equipment if it is attached to the car.
For travel:
Luggage Delay - if your luggage is delayed during a flight travel insurance will compensate you for the
purchase of new essentials (including clothing).
Legal Aid will reimburse the cost of lawyers or translation services if you have violated the laws and
regulations of that country during the trip and have caused damage to a third party.
Medical Expenses - in the event of an injury or illness caused in a trip, medical expenses cover
reimbursement of the costs of treatment, doctor visits, medication, hospital fees, and dental expenses.
Flight cancellation or delay - in case of flight cancellation the insurer will pay compensation for
alternative transport, purchase of new tickets or other related expenses.
Trip cancellation - trip canceled due to unforeseen circumstances. This risk will cover the costs of
purchased air tickets, transfers, hotels and other expenses incurred due to the canceled trip.
Repatriation is a transportation of the insured person to the home country in case of illness or death.
Medical transport is a transport of the insured to the hospital by land, air or water transport. For
example in the event of an injury while skiing in the mountains an ambulance may not be able to access the scene
and it will be necessary to call a helicopter to take the victim to hospital.
Leisure activities - when going on a trip where you will engage in some sports activities the active
leisure policy will additionally insure sports equipment and ski passes.
Liability - if the damage to the health or property of a third party is caused by your actions during
the trip the civil liability insurance will compensate the third party.
For real estate:
Liability Insurance covers losses you have caused to others. For example a neighbor's apartment was
leaked.
Losses caused by tenants By insuring against the risk of tenants, you protect your wallet from expenses
that may arise when a tenant takes too much with you or damages your property.
Illegal actions of third parties - burglary, theft, intentional damage, graffiti, etc.
Repairs - this risk can be used to insure against possible property damage during construction.
Home Helpdesk is a service that can be used free of charge when you need the help of a carpenter,
plumber, locksmith, electrician or other professional in your home.
Other types of insurance
For individuals:
Liability insurance protects you from the costs of damages you have caused to a third party through
your fault. Often this type of insurance also insures the liability of your children.
Purchase insurance provides for indemnification for losses incurred in the event of partial or complete
damage to the insured electrical appliance, household or garden equipment.
Bicycle Insurance insures you against theft and damage to your bicycle while in traffic or while
transporting your bicycle.
Foreigners' insuranc is mandatory in order to obtain a residence permit in Latvia.
Critical Illness Insurance provides a one-time compensation for diagnosing one of the critical
illnesses (cancer, stroke, heart attack, Alzheimer's disease, diabetes, multiple sclerosis, blindness,
paralysis, etc.).
CASCO Mini, Golden OCTMTPLA and MTPL Plus - a type of vehicle insurance that is especially useful for
older cars for whom a CASCO policy is too expensive. It compensates for damage after a collision with a wild
animals or other vehicle even if you are to blame for the collision.