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Actual Cash Value (ACV)

The fair market value of property; technically, replacement cost less depreciation. The actual value for which the property could be sold at the time of loss; which is always less than what it would cost to replace it.


A qualified statistician professional who compiles, computes and analyses statistics for insurance risks and premiums.


Parts originally installed in the Vehicle by the Vehicle manufacturers and included in the original price such as navigation equipment, telephone, stereo equipment and other similar items.

Approved Garages

Panel of garages chosen by ADNIC that are authorized to handle the repair of insured vehicles.

Adverse Carrier

Term used to refer to the other party's insurance company.

After-Market Parts

Aftermarket parts are replacement parts that are not made by the original equipment manufacturer. Aftermarket parts are used to replace damaged parts in automobiles and other machinery. 


An individual who acts as a representative for the insurance company and sells insurance products of that company; usually on a commission basis. This individual could be an 'exclusive' or 'non-exclusive' agent.

Agreed Value

The sum insured agreed between the insurer and the insured for the value of a property insured which will be the amount of settlement at the time of a covered loss.


A change to the basic policy contract. An amendment alters the insurance policy; an endorsement adds coverage to existing insurance policy.

Ancillary Deductible

The amount paid by the Insured according to the Policy in addition to the Basic Deductible.


An appraisal is a professional assessment of a property's value. In the insurance industry, appraisals are used to calculate the cost of replacing the property or to determine the amount of damage to the property after a covered loss.


A process of settling a dispute through an impartial party. It is used as an alternative to litigation.


Means the same as insured, policyholder, an insured or someone who has an insurance policy.


The party that is legally liable for the damages in an accident.


Basic Deductible

The amount paid by the Insured according to the Schedule of Deductibles attached to the Policy per accident.


A temporary agreement declaring that the policy is in effect. Used in certain cases to protect a policyholder when it is not possible to issue or endorse the policy immediately.

Bodily Injury

An injury sustained by a person.

Bodily Injury Liability Coverage

Pays damages for bodily injury or death resulting from an accident for which you are at fault and in most cases provides you with a legal defense. This coverage is subject to the terms, limits and conditions of your policy contract.

Brand New/Used Vehicle

Brand New - Vehicle with Zero mileage and not yet registered in the Traffic Department of UAE.

Used vehicle - Vehicle which is not a Zero mileage or which has already been registered in the Traffic Department.



Termination of an insurance contract before the end of the policy period, by the insured or insurer.


The insurance company or insurer.

Car Replacement

Optional coverage that helps pay rental vehicle costs when your insured vehicle is unusable as a result of a covered accident or loss. Available to most policyholders for an additional premium.


A disaster affecting a specific geographic area. Catastrophes often cause injury or even death; most result in extensive property damage. Hurricanes, floods, tornadoes, and even large hailstorms are typical examples of catastrophes.


An insurance claim is a formal request by a policyholder to an insurance company for payments or compensation for a covered loss.


Individual or entity presenting a claim under an insurance policy.

Collision Coverage

Pays for damage to an insured vehicle when it hits or is hit by another car or object, or if the car overturns. This coverage is typically part of comprehensive insurance policy subject to the terms, limits and conditions of your policy contract.

Competitive Estimate

A term used when an insurance company requests for multiple repair estimates for a claim.

Comprehensive Physical Damage Coverage

Pays for damage to your car from theft, vandalism, flood, fire or other covered perils. This coverage is subject to the terms, limits and conditions of your policy contract and is only applicable under motor comprehensive insurance.


The portion of the insurance contract, which outlines the duties and responsibilities of both the insured and the insurance company.

Company (Insurer)

The insurance company that is licensed to operate according to the laws and regulations issued by UAE authorities.


Protection and benefits provided in an insurance contract.

Customized Vehicle

A vehicle that has been altered or has equipment or accessories not typically found in a standard vehicle.



Loss or harm to a person or property.


The portion of a claim you pay out of pocket. Choosing a higher deductible will lower your insurance premiums.


The decrease in value of any property due to wear, tear, and/or time. Generally, depreciation is not an insurable loss.

Depreciation Percentage

The percentage payable by the injured party on the occurrence of an accident, and who requests the replacement of new parts in lieu of the used parts in case of partial loss according to the schedules of depreciation.

Direct Pay

Direct pay is a method of transferring money from your account to a specific company via an online payment method.

Discharge Receipt

Legally binding contract stating that all obligations past, present or future arising from a particular accident or occurrence have been fulfilled.


A reduction in your premium if you or your car meet certain conditions that are likely to reduce the insurer's premium. For example, motor  insurance discounts are given for drivers with claims free history.


Easy Payment Plans

Your motor insurance premium can be paid using one of our Easy Payment Plans when you make payment using certain credit cards; you will make several smaller payments but may incur a service fee.

Electronic Funds Transfer (EFT)

EFT is an electronic payment method that lets you pay your premiums with automatic deductions from your checking account; or receiving claims payments directly in your account.

Emergency Road Service Coverage

Roadside assistance and breakdown coverage are services that assist motorists, whose vehicles have suffered a mechanical failure that leaves the operator stranded  e.g. being locked out of your car, towing not related to an accident, having a dead battery re-charged, inflating a flat tire, or filling an empty gas tank.


An amendment to the basic policy contract. An endorsement adds coverage to the policy contract.


An assessment of the cost to repair your damaged property or vehicle.


Restriction in your insurance policy that limits coverage and may exclude coverage for certain perils, persons, property, or locations.

Expiration Date

This date, found on your policy schedule, indicates when your policy coverage runs out. Your renewal policy will start on this date.


Financed Car

A vehicle financed by a bank. The lender retains a lien on the vehicle until it has been fully paid off.

First Party

Term used to refer to an insured.

First Party Claims

A claim for damage, loss or injury made by an insured.


An event that occurs within the concept of Natural Disasters.


Gap Insurance

A motor insurance option that comes into play when your vehicle sustains a total loss. Gap insurance covers the "gap" or difference, if any, between your car's actual cash value and what you still owe on it.



Anything that increases the risk of an accident occurring.

Homeowners Insurance

Protects homeowners from losses to their homes, contents, personal property, and some types of damage or injury to others for which the homeowner is liable. Homeowners insurance is subject to the terms, limits and conditions of your policy contract.



The act of providing compensation for a loss with the intent to restore an individual or entity to the approximate financial position prior to the loss.


Compensation for a loss intended to restore an individual or entity to the approximate financial position prior to the loss.

Independent Loss Adjuster

An individual who estimates losses on behalf of an insurance company, but is not an employee of that company.


Inspection is physical verification of property e.g. vehicle to identify "hazards,” or conditions which increases the chance of a loss.

Insurable Interest

Insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence, without damage, of the insured object or property.


Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to protect against the risk of an uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter. In exchange for payment of premium, the insurer promises to reimburse the person for their covered losses.

Insurance Application

The application that includes the details of the Insured, the details of the Motor Vehicle and the type of required coverage, and is filled in by or with the knowledge of the Insured electronically or in writing.

Insurance Fraud

The act of falsifying or exaggerating the facts of an accident to an insurance company to obtain payment that would not otherwise be made. Common types of insurance fraud are staged accidents, exaggerated injuries, and inflated medical bills.

Insurance Period

The period of time of motor vehicle insurance up to the end of the thirteenth month from the commencement of the insurance.


A natural or corporate person that has applied for insurance, entered into an insurance contract with the Company, and paid or has agreed to pay the premium. Also known as the policyholder.

Insured Value

The amount stated in the Policy Schedule, which we shall pay in the event of a total loss after deducting depreciation as per the amount shown in the depreciation schedule.


An organization that provides insurance.


Leased Vehicle

A vehicle rented under a long-term contract (lease). The leasing company retains ownership of the vehicle and must be shown on your insurance policy as an insured.

Legal Liability

Liability imposed by law, as opposed to liability arising from an agreement or contract.


Any legally enforceable obligation or responsibility for the injury or damage suffered by another person.

Liability Insurance

Insurance that provides protection from claims arising from injuries or damage to other people or property.

Liability Investigation

The process of gathering information to determine the cause of an accident.


A lien is a claim or legal right against assets e.g. vehicle that are typically used as collateral to satisfy a debt. A lien serves to guarantee an underlying obligation, such as the repayment of a loan.


A person or organization with a financial interest in property up to the amount of money borrowed or still owed on the property e.g. bank in case of financed vehicle.


The maximum amount of protection purchased by the insured for a specific coverage.

Limits of Liability

The maximum amount which an insurance company agrees to pay as a result of a single accident or injury. Basically, the amount specified in your policy up to, which the insurance company will protect you.


Any measurable financial cost of damage and/or injury suffered by a person.

Loss Adjuster

A third party appointed by the insurer to adjust the loss. A professional who investigates personal or property damage in order to make estimates for insurance claims settlements.  Loss Adjuster determines whether an insurance claim is legitimate and handles settlement negotiations.

Loss of Use

Compensation to a third-party claimant for financial consequences resulting from the inability to use property as the result of accident-related damage.


Material Damage

All property-related damage covered by an insurance policy. This includes property damage (PD), comprehensive damage, collision damage Fire/Theft.

Mechanical Breakdown Insurance

It covers repair cost to mechanical parts of the insured property.

Medical Payments Coverage

Pays medical expenses related to motor accident. This coverage is subject to the terms, limits and conditions of your policy contract.


To make written or verbal statements that are untrue or misleading to insurance company for the purpose of accepting or rejecting a risk. 

Motor Claims Loss Adjuster

The Motor claims loss adjuster is responsible for writing the repair estimate for vehicle damaged in an accident.

Motor Insurance

Motor Insurance provides protection from losses resulting from owning and operating a vehicle. The insurance covers losses to the insured's property and losses for which the insured is liable as a result of owning or operating a vehicle.

Motor Vehicle Driver (Licensed Driver)

The insured or any person who drives the Motor Vehicle by the permission or order of the Insured, provided that they are licensed to drive according to the Motor Vehicle category pursuant to the Traffic Laws and other laws and regulations, and that the granted license has not been cancelled by a court's order or by virtue of the Traffic Laws and its Executive Regulations. This definition includes the driver whose driving license has expired if they manage to renew it within thirty days from the date of accident.

Motor Vehicle

A mechanical machine, motorcycle or any other device that works through a mechanical force, and its specifications are described in the Policy.

Multi-Car Discount

Available to policyholders who owns and insure more than one vehicle with the same insurance company.


Named Insured

The person or entity listed on the policy schedule.

Natural Disaster

Any general phenomenon that arises from nature such as floods, tornados, hurricanes, volcanoes, earthquakes and quakes, and leads to extensive and widespread damage, and in respect of which a decision is issued by the concerned authority in the country.


The failure to exercise the care that is expected of a reasonable person in normal circumstances.


When an insurer decides not to renew a policy at the end of its policy period.



An event, or repeated exposure to conditions, which unexpectedly causes injury or damage during the policy period.

Original Equipment Manufacturer Parts

Auto parts obtained from the original manufacturer of the car or the supplier of the original part.


Paperless Billing

An electronic version of your bill that you can review online.

Payment Recovery/Subrogation

Subrogation is the assumption by a third party of another party's legal right to collect a debt or damages.  For example, if your car is damaged because of another driver's negligence and you ask ADNIC to settle the claim for damage to your vehicle, we will seek to recover your deductible and our payments from the other party. This process of payment recovery is also called subrogation.


A danger or hazard that can cause a loss, for example, a car collision with an object, or a fire.

Personal Property

Property that is not land or connected to land (real estate), such as furniture or jewel.

Physical Damage

Damage to property.


A contract between you and the insurance company, which governs the relationship between the Insured and the Company, and whereby the Company undertakes to compensate the Insured, on the occurrence of the damage hereby covered, in return of the premium paid by the Insured.

Policy Change

Any change made to your insurance policy during the period that the policy is in force.


The person or entity listed on the policy schedule.

Policy Schedule

The part of your policy that includes your name and address; the property that is being insured, its location and description; the policy period and the amount of insurance coverage.

Pre-accident Condition

The state of the vehicle before the accident, including damage not related to the accident, mileage, options, and other factors.


The consideration that is paid or undertaken to be paid by the Insured in return for insurance coverage.

Private Vehicle

A vehicle licensed to be used for personal purposes for transporting passengers and their personal belongings.

Proof of Loss

A statement made regarding the extent of the claim; it may be requested in accordance with the conditions of the policy.

Property Damage Liability Coverage

Pays for damage to someone else's property resulting from an accident for which you are at fault and in most cases provides you with a legal defense. This coverage is subject to the terms, limits and conditions of your policy contract.

Proposal Forms

Questionnaires or coverage selection forms that a policyholder is required to fill out prior to issuance of insurance policy.

Proximate Cause

An act or omission initiating an unbroken sequence of events resulting in injury to a person or damage to property.



A statement of the premium that will be charged for insurance coverages based on specific information provided by the person or organization requesting the quote including details of covered property e.g. vehicle, machinery, building or a person or employees.



Often used as a synonym for premium but actually refers to the base rating units that are used to determine the final premium by applying it on the sum insured.

Rating Plan

The rules that determine the cost of your insurance premium. These rules modify the base rates by applying discounts and surcharges based on various factors that are applicable for a specific policy; for example, your personal characteristics, e.g. age, or license to insure a car.


A review of an estimate or appraisal done by an adjuster during or after repairs to a vehicle. This is done to guarantee the accuracy of staff or independent auto damage personnel, and to guarantee that the work required in an estimate or appraisal is being completed by the body shop.

Renewal Date

The date that your insurance policy expires and the date that your renewed policy will begin.

Renters Insurance

Property Insurance providing coverage to an individual living in a rented property.

Replacement Parts

Several types of parts may be used when your vehicle is repaired: new parts, both original equipment manufacturer and after-market; and reclaimed parts. New or after-market parts will be used if we can't find like-kind and quality reclaimed parts. A 5-year-old car, for instance, would be repaired with parts at least as good as the parts that had been in the car.

Retained Limit

In umbrella insurance, retained limit is similar to a deductible in other types of insurance. The retained limit is the amount of damages for which the policyholder is responsible before the umbrella coverage begins to cover a loss.


Every special agreement between the parties in supplement to the basic coverages under this Policy.


The chance of suffering a loss.


Every road open and available to the public without need to get special permission, and every place that is made available for the crossing of motor vehicles, and is made available to the public by a permission or license from a concerned authority or otherwise, for or without consideration according to the definition mentioned in the applicable Traffic Laws.



Damaged property which is taken over by the insurance company after payment of a claim.


Means the document, which gives details of You, Us, the Vehicle, the cover You have and any other specific conditions.

Supplement/Supplemental Estimate

Used to cover damage not included in the original estimate.


Territorial limits

Means United Arab Emirates and any other area stated in your Policy schedule.


The unlawful taking of another's property with the intent to permanently deprive the owner of its use or possession.

Third Party

Person or entity not party to an agreement but with an interest in the agreement.

Third Party Claim

Claims for injury or damage to property of a third party alleged to have been caused by the insured.

Total Loss

Property that has sustained damage so extensive that repairing it is not reasonable. A vehicle is considered a total loss if it cannot be repaired safely, if repairing the vehicle is not economically practical.

Towing and Labor Coverage

Provides service to your vehicle to be towed or any other roadside assistance.



The process an insurer goes through to determine whether or not it will provide coverage for an applicant.


Vehicle Theft

The theft of a vehicle is a type of loss that is covered under Motor comprehensive insurance policy.

Vehicle Identification Number (VIN)/Chassis Number

A 17-digit number assigned to each vehicle manufactured after 1980. This number is used for identification purposes and is visible on the dashboard when viewed from the outside of the vehicle.