We all sometimes revert to using acronyms and buzz words and life in the insurance world is sometimes more complicated than it should be. To help you translate some of the things designed to confuse you is our idiots guide to the jargon.
- ABI - Association of British
Insurers
The ABI is the governing trade body of
which most insurance companies are members. All ABI members have
to follow the association's code of practice at all times. The ABI
has established a protocol which is referred to as the GTA (see
below) and this regulates the way in which members of our industry
and the insurance industry negotiate compensation for accident
claim victims.
- Approved Repairer
Most insurance
companies use approved repairers for all their insurance claims.
The benefits this gives insurers is that they can drive the cost
of repairs down by directing large volumes of work to a limited
number of body repair shops often by allowing the body repairer to
only recover a set hourly rate and limited commission on the parts
that it supplies.
Your priorities are often at odds with an
insurer in that you want your car repaired to the standard
determined by the manufacturer so as not to threaten the residual
value when you come to sell it. You have the absolute choice as to
who you select to repair your damaged vehicle irrespective of who
insures your car. If you are concerned about the quality of repair
it falls to the insurer to negotiate separately with the repairer
to agree the repair cost.
- Beyond Economical Repair
This is a
euphemism for the more commonly accepted term that most of us know
as a "write off" or “total loss”. Either phrase means that it is
not financially viable to repair the damaged vehicle and most
insurers will wish to make an offer to recompense you for the loss
you have suffered by agreeing a pre-accident value for the damaged
vehicle.
- Courtesy Car
This is a free car
provided by the repairing garage. It is usually an A group car
such as a Nissan Micra or Ford Ka. Many people believe they have
an automatic entitlement to a courtesy car following an accident
but they do not unless they have paid an additional premium when
they took out their insurance policy. Even then, the car may only
be provided if you use the insurer approved repair shop and then
only for a limited period of time.
If you are offered a
courtesy car and it is not sufficient for your needs – too small,
under powered or not acceptable – then you are not obliged to
accept it.
- GTA - General Terms of Agreement
This
is an agreed protocol between the insurance industry and the
industry of which Accident Exchange is a member. It regulates how
we do business, how we manage claims, the charges we can recover
on your behalf and the way insurers must behave in respect to
settling your claim.
- Motor Insurance Bureau
This is a body
which the government in every European country has to establish
and it is funded by all UK insurers as an insurer of last resort.
If you are involved in an accident where the third party is not
insured then the Motor Insurance Bureau becomes their adopted
insurer and the people who will settle claims for damages through
the negligence of that uninsured third party driver.
- Policy Excess
To reduce the level of
your motor insurance premium you may have agreed to a £100 policy
excess on your policy. This means that if you make a claim for
damages following an incident that you will have to pay the first
£100 of any claim. Insurers like the policy excess because it
makes drivers share their pain and helps prevent people from
claiming for minor damage.
- Pre-Accident Value
This is a figure
which represents what a car was worth before it was involved in an
accident. If the potential repair cost is more than 50% of the
pre-accident value then your car will probably be deemed beyond
economical repair.
- Third Party
This term refers to anyone
affected by an accident, other than yourself. It can include
drivers and passengers of other cars, or owners of property (for
example if you hit a wall).
- Third Party Insurer
The insurance
company of the other person involved in an accident.
- Third Party Fire & Theft
(TPF&T)
If you cause an accident, Third Party
Insurance (the minimum required by law) ensures that any other
party involved in the accident are protected from loss through
your negligence. Any costs to your own car are not covered but, if
you have Fire & Theft insurance then you're covered if someone
steals your car or if it's damaged by fire. If you have TPF&T
your own insurer will never pay to repair the damage to your
vehicle if you are involved in an
accident.
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