Insurance glossary

Policy

A policy is a contract issued by the insurer outlining terms, conditions, and coverage between the insured and the company, including insurance type, premium, sum insured, and policy expiry.

Sum Insured

The maximum amount the insurer will pay for vehicle damage, not exceeding the policy limit.

The Insurer

The insurer is the insurance company responsible for underwriting and compensating losses, either by cash, repair, or replacement, as stated in the policy.

The Insured

The person who buys the motor policy and pays premiums. When a covered loss occurs, they may claim indemnity from the insurer for the actual damage suffered.

The Beneficiary

A person outside the contract who is entitled to receive benefits under the policy terms. The beneficiary may be the same as the insured; if someone else is named, the insured may not receive that benefit.

Premium

The amount you pay the insurer for coverage. If premiums are unpaid and a loss occurs, the insurer may deny the claim until premiums are brought up to date. You can pay annually or in instalments with Shield Insurance Broker's car insurance.

Claim Amount

The compensation claimed for losses covered under the policy terms.

Deductible/Excess

The first portion of a loss you pay before insurance responds. There are two common types:

1. 1.Deductible: A voluntary amount paid when the insured is at fault.
2. 2.Excess: A mandatory fee (1,000 THB) for non-collision claims or unidentified parties.

Fresh Claim

On-site claims involving an insurer's surveyor are divided into two types.

1. 1.With a party: Involves vehicle collisions to determine fault or assess shared negligence.
2. 2.Without a party: Involves collisions with objects or unidentified parties (e.g., hit-and-run).

Dry Claim

Filed after the incident without an on-site surveyor. It typically applies to minor or non-third-party claims and requires clear incident details.

Garage repairs

Two types:

1. 1.Contracted Garage: Approved by the insurer, allowing repairs without upfront payment.
2. 2.Non-contracted Garage: Not approved by the insurer; the insured may need to pay upfront and claim reimbursement later.

Dealer Repair

Repair at an authorized dealer using genuine parts and manufacturer standards.

Loss of Use

Compensation claimed from the at-fault party while the insured vehicle is under repair.

• ●Private vehicles (≤7 seats) not less than 500 THB/day
• ●Public vehicles (≤7 seats) not less than 700 THB/day
• ●Vehicles (>7 seats) not less than 1,000 THB/day

Roadside Assistance

Optional services such as towing, on-site mechanic, fuel delivery, or 24-hour technical advice, depending on the insurer.

No-Claim Bonus - NCB

A renewal premium discount granted when no claims are made, or when claims are made without fault.