Insurance glossary
Short answerChecked 23 September 2026
The words you will meet in a quote or a policy, explained in one or two sentences each. When a rule differs by country, the country guides give the detail and the source.
- Sum insured
- The maximum the insurer will pay under the policy, or for one item or one person.
- Excess
- The part of each claim you pay yourself. With an excess of 10,000, a claim of 50,000 pays 40,000. Also called a deductible.
- Third party
- Anyone other than you and your insurer — for example a pedestrian or another driver you injure. Third-party cover pays for harm you cause to them.
- Comprehensive cover
- Motor cover that adds damage to your own vehicle (accident, fire, theft) to third-party cover.
- Policyholder
- The person or company that owns the policy and pays the premium.
- Beneficiary
- The person who receives the money from a life policy when the insured person dies.
- Insurer (underwriter)
- The licensed company that carries the risk and pays claims.
- Broker
- A licensed intermediary who compares insurers for you and is paid a commission. A broker works for several insurers.
- Agent
- A licensed intermediary who sells on behalf of one or more insurers. Ask to see the licence.
- Bancassurance
- Insurance sold through a bank, often linked to a loan or an account.
- Cover note
- A temporary document that proves you are insured until the full policy or certificate is issued.
- Certificate of insurance
- The official proof of motor insurance required by law. In Kenya and Tanzania it can be checked online or by USSD.
- Claim
- Your request to the insurer to pay for a loss the policy covers.
- Exclusion
- Something the policy does not cover, listed in the policy wording. Read exclusions before you buy.
- Waiting period
- A period after you buy a health or life policy during which some benefits are not yet paid.
- Pre-existing condition
- An illness you had before buying health cover. Many policies exclude it or cover it only after a waiting period.
- Co-payment
- The share of each medical bill you pay yourself, on top of what the insurer pays.
- Inpatient / outpatient
- Inpatient = treatment when you are admitted to hospital. Outpatient = consultations, tests and medicines without admission.
- Surrender value
- The money you get back if you cancel a savings or whole-life policy before its end. It is often less than the premiums paid.
- Lapse
- When a policy stops because premiums were not paid in time.
- Cooling-off period
- A short period after buying a policy during which you can cancel and get your premium back. Tanzania gives it by law for life policies; elsewhere ask the insurer.
- Takaful
- Insurance run on Islamic principles: members contribute to a shared fund that pays claims, with no interest.
- Reinsurance
- Insurance for insurers. Reinsurers do not sell to the public.
- Micro-insurance
- Low-cost cover with small premiums and simple terms, often sold through mobile money or groups.
- Total loss (write-off)
- When a vehicle is too damaged to repair economically. The insurer pays its value, not the cost of repair.
- No-claims discount
- A lower premium at renewal when you have not made a claim. Ask how it is calculated.
- Yellow card (COMESA)
- A regional motor insurance card that covers third-party liability when you drive in other COMESA member countries.
- Ombudsman
- An independent person or office that settles disputes between customers and insurers, like the Tanzania Insurance Ombudsman.