Amount owed by the Policyholder to the Insurer in addition to the premium or contribution, representing the cost of ancillary expenses (cost of issuing the policy, receipt, etc.).


Any sudden, fortuitous, unforeseeable event beyond the Insured’s control, resulting in bodily injury, material or immaterial damage. – Characteristic Accidents: Risks covered by an insurance contract.

Aggravation (Of Risk)

Modification of the risk which makes it more dangerous in the eyes of the Insurer, and which the Insured is obliged to declare to the latter.


Transfer of ownership of an asset between individuals or legal entities (e.g. donation, sale, etc.).

Absolute and Definitive Disability

This refers to disability resulting from an accident or illness that makes it impossible for the insured to carry out any professional activity whatsoever, and which also obliges him/her to have recourse to a third party to carry out the ordinary acts of life. Absolute and definitive disability is generally treated in the same way as death in all contracts.

Annuity certain

Payment of an annuity in annual instalments, in arrears, for a predetermined period (usually between 10 and 20 years) …

Appraised value

This is the value of an asset (such as a car) appraised by an expert using techniques specific to his profession and accepted by insurance companies.

Approved value

This is the value determined by mutual agreement between the insurer and the insured by an expert. The calculation of the indemnity due in the event of a claim is based on this value and not on the value in use (see definition).



Buildings and their outbuildings, excluding land.


Individual or legal entity for whose benefit the insurance has been taken out. This is the person who will benefit from the payment of the benefit when the loss occurs. If the general conditions are not sufficiently precise, the beneficiary is usually named in the special conditions.


The broker acts as an agent on behalf of his client, independently seeking out the insurance company that will best guarantee his interests (the best cover at the best price). In legal terms, the broker is a merchant (the general agent is a liberal profession).


This notion generally refers to theft coverage. Break-in is the act by which a locking device is forced, damaged or destroyed.


The insurer’s commitment to the insured.


Capacity (Underwriting)

Maximum amount that can be accepted by the Insurer to cover a given risk.

Capital insured

Value declared in the contract and constituting the limit of the Insurer’s commitment.


Particular provision of an insurance policy detailing the operation of a guarantee, or specifying the nature of the reciprocal commitments of the insurer and the insured.


Process whereby several insurers cover the same risk, each assuming a fraction of the sums insured. This technique is used when the underwriting capacity of a single insurer is not sufficient to enable it to commit to the whole.


Remuneration paid to an insurance intermediary, business introducer or manager.

Conditions of insurance

All the clauses forming the basis of the agreement between the policyholder and the insurer.

Coefficient Réduction Majoration (CRM)

System by which policyholders are granted reductions or increases depending on the occurrence (or non-occurrence) of a claim. This is a central element in the pricing of your car insurance, as the application of this coefficient can have a significant impact on your insurance premium. The information is centralized by the Fédération Marocaine des Sociétés d’Assurances et de Réassurance and made available to the distribution network.

The reduction/increase coefficient is a multiplier applied to the motor insurance premium, based on the claims history. It makes it possible to grant a reduction in the insurance premium to good drivers and to increase the premiums of policyholders who have caused claims.


Stabilization of a person’s medical condition after an accident or illness, leaving some after-effects.

Constat Amiable

This is the document to be completed by policyholders involved in a road accident, regardless of their degree of responsibility. This document, which is intended for the insurer, contains all the information required for compensation purposes (identity of insured parties, vehicles involved, accident address, points of impact, etc.). It must be completed with care, as it becomes irrevocable once signed by both parties.


The subscriber of the insurance contract (see Subscriber).

Capitalization contract

An insurance contract in which the probability of death or survival is not taken into account in determining the benefit, in the sense that in exchange for single or periodic premiums, the beneficiary receives the capital constituted by the payments made, plus interest and profit sharing.


This is the guarantee covered by the insurance contract.

Contract term

Duration of the mutual commitments of the insurer and the insured under the insurance contract.


Amount of cover granted by the Insurer to the Insured.

– Pre-loss appraisal: Preliminary estimate of goods to be insured;

– Post-loss appraisal: Estimate of the amount of damage or loss resulting from a loss:

– Expertise amiable : Expertise carried out by an expert chosen in principle by mutual agreement between the parties;

– Expertise contradictoire: Expertise in which all parties are represented by experts appointed by them;

– Expertise judiciaire : Expertise ordered by the Court.

Claim declaration

The act by which the insured declares to his insurer a claim that may involve his coverage. The time limit for making a claim depends on the nature of the cover in question and the nature of the claim. In the event of failure to comply with the notification deadline, the insurer is entitled to refuse to cover the claim, except in the case of fortuitous events or force majeure.

Cover note

Document embodying the commitment of the insurer and the insured and proving the existence of an agreement pending the issue of the insurance policy.


Direct Compensation Agreement

The DIC is an agreement signed by all motor insurers on the market. It enables each insurance company to directly compensate its policyholders not at fault or partially at fault for a road accident. Intended to speed up compensation procedures and make things easier for policyholders, this agreement only covers material damage to insured vehicles. Under this agreement, inter-company recourse procedures are extremely simplified.

Defense and Recourse

This cover is usually included in motor liability policies. In most cases, it applies to covered damage and comprises 2 parts:

– Defense: the insurer covers the insured’s defense costs up to a sum specified in the policy conditions.

– Recourse: at its own expense, the insurer takes recourse action on behalf of the insured against the party responsible for the accident.

the party responsible for the accident.

Denunciation (of the contract)

Cancellation of the insurance contract. Depreciation: A reduction in the value of an asset due to age, wear and tear, obsolescence or damage.


In insurance, there are three types of damage:

– Material damage: Damage caused to property (including animals);

– Immaterial damage: Consequences of the loss or destruction of the object, such as deprivation of enjoyment or loss of a right, interruption of a service or financial loss;

– Bodily injury: Bodily injury resulting from an accident.


Part of the damage that remains payable by the insured in the event of a claim. The amount of the deductible is shown in the general or special conditions. It is either a flat-rate amount, or a percentage of the claim amount.

Decennial warranty

The “garantie décennale” (ten-year warranty) enables the owner of a property to protect himself against the risk of serious defects appearing over time in the execution of the work. Contractors are therefore required to take out a “garantie décennale” type of insurance to ensure that the work is properly carried out and that the structure is sound.

Daily compensation

This is the indemnity paid to the insured for each day he or she is off work as a result of temporary total disability.


Determined by an expert, obsolescence corresponds to the depreciation of the insured property according to its age and condition. It is deducted from the amount of compensation payable following a claim.


Expiry date

This is the anniversary date of the insurance contract. Even if premiums are paid in instalments (half-yearly, quarterly or monthly), only one instalment is due. This is the only reference date for the notice period.

Effective date

Date from which the risk is assumed by the insurer.


These include paintings, mirrors fixed to walls, woodwork, panelling, false ceilings, fitted kitchens and bathrooms, and all glued coverings except tiles and parquet.


Any circumstance likely to cause or having caused a loss.


An event or condition not covered and therefore excluded from coverage.

Extension of cover

Coverage added to the basic policy at the request of the policyholder, usually in return for an additional premium.


Fund for the Guarantee of Traffic Accidents

This is a fund financed by a portion of motor insurance premiums. Its purpose is to compensate victims of personal injury accidents caused by land motor vehicles, when the responsible party is unknown, uninsured or insolvent. The fund retains the right of recourse against the liable third party (uninsured or insolvent person).

Force Majeure

Unforeseeable and insurmountable event likely to exonerate the author of the damage from all liability.


Loss of right of recourse.

Fixtures and fittings

Facilities that cannot be removed without damaging them or the buildings. These are buildings by destination, for example an elevator or a central heating system.



Commitment by the insurer to cover the risk covered by the insurance contract.

General Conditions

This is the basic document setting out the rules governing the insurance contract, and forms an integral part of the policy. These conditions apply to all policyholders taking out the same type of contract.

Good Family Man

This is an expression used by insurance companies, who must manage their businesses with prudence and wisdom, in order to safeguard the interests of policyholders and beneficiaries.

General Agent

He represents a company exclusively. The latter delegates to him the power to underwrite contracts, collect premiums and settle claims.



An event that is uncertain or whose date of occurrence is uncertain. This “hazardous aspect” forms the fundamental basis of the insurance contract.



Fire, Accident and Miscellaneous Risks. This branch of insurance includes a wide range of coverages and insurance contracts.

Insurance indemnity

Sum paid by the insurer in accordance with the terms of the contract as compensation for the loss suffered by the insured or the victim.

Insurance proposal

Document sent by the insurer or its representative to a potential policyholder, on which the latter must provide the information necessary for the insurer to assess the risk to be covered and set the terms and conditions of coverage.

Insurance policy

Document embodying the insurance contract. It sets out the general and special conditions.

Insurance contract

Agreement between the insurer and the policyholder covering a risk and recording their mutual commitments.

Insurance code

All the texts and regulations (law no. 17-99 on the insurance code and all the decrees and orders deriving from it) governing the insurance sector.



Part of the premium or contribution used to cover the operating and distribution costs of the insurance company.

Life insurance contract

A contract under which, in return for single or periodic payments, the insurer guarantees benefits that depend on the survival or death of the insured.


Loss of the right to compensation for a claim due to the insured’s failure to comply with one of his commitments, without this resulting in the nullity of the contract.

Life annuity

The annuity is paid until the death of the insured. In the case of a joint life annuity, after the death of the beneficiary, the annuity will be payable to the spouse, either in full (full reversion) or in part (partial reversion).


Liability is the obligation to compensate for damage caused to others, either by one’s own actions, or by the actions of a person for whom one is responsible, or by a thing in one’s custody. Such damage may result from imprudence, poor performance (or lack of performance) of a contract, etc. In general, there are two types of liability:

– Liability in tort: the obligation of any person to make reparation for damage caused

caused to others;

– Contractual liability: arises from the non-performance or improper performance of a contract of “liability” insurance enables the insurer to take the place of the person civilly liable, even if he or she has committed a fault or an offence, to compensate the victim.


It’s a risk that comes true: fire, theft, accident…. You take out insurance to protect yourself against the consequences.


Mixed (mixed insurance contract)

Mixed insurance is the combination of coverage in the event of life and coverage in the event of death. This is equivalent to mixing a provident contract with a capitalization contract. Mixed insurance policies are less and less common, in favor of policies that provide separate coverage for both.


Insurance contract combining several guarantees for the same insured risk.

Minimum guaranteed rate

This is the minimum return on savings that the insurer undertakes to pay on savings and capitalization contracts. This guaranteed minimum rate is subject to strict regulations, and offers considerable security to savers…

Market value

The price at which the owner could have sold the vehicle had the accident not occurred. It is determined by an expert on the basis of the Argus price and any repair costs. It’s the replacement value less depreciation.


Notice to pay

Registered letter sent by the insurer to force the insured to pay the insurance premium. The “mise en demeure” is regulated by the French Insurance Code and is subject to a specific procedure.


This sanction is generally applied when the insured is found to have deliberately misrepresented his or her background or personal situation in order to mislead the insurer in assessing the risk.



Organism for Collective Investment in Transferable Securities. Portfolios of securities held jointly by several investors (SICAV or FCP). This concept refers to unit-linked contracts.


Overinsurance occurs when the sum insured exceeds the actual value of the risk insured.


Participation Aux Bénéfices

– In property and casualty insurance: a system provided for in some insurance categories, which consists of paying a sum to the policyholder of a contract whose statistical results are profitable.

– In life insurance: Principle whereby insurance companies undertake to share profits with their policyholders up to a percentage specified in the contract. This system is specific to savings and capitalization contracts.


Injury to the rights and interests of a natural or legal person. The damage may be material, immaterial or bodily.


A person acting under the direction, orders and supervision of another person

(physical or moral).


Actions arising from an insurance contract are generally time-barred two years after the event giving rise to them. This period applies to both the insurer and the insured. The limitation period is calculated from the date of the event that gave rise to the obligation of one of the parties. Prescription thus cancels a right if it has not been exercised within a certain period.


Amount due by the subscriber of an insurance contract in return for the cover provided by the insurer.

The insurance premium may be periodic (annual, half-yearly, quarterly or monthly) or single (payment made only once when the contract is taken out).

Pure premium

Amount representing the cost of the risk covered, as calculated by actuarial methods on the basis of risk statistics.

Prorata temporis

This is the calculation rule used by the insurer to return to the insured the portion of the premium for the period during which he was not insured. It generally applies when the policy is cancelled before maturity.

Permanent partial disability

IPP is the physical injury resulting from an accident or illness that partially and permanently reduces the insured’s ability to carry out a professional activity. Its degree is assessed based on regulatory or contractual scales.

Permanent Total Disability

The insured is definitively recognized as being unable to engage in any professional activity providing gain or profit, and whose functional incapacity rate is equal to 100%.

Premium rebate

Reimbursement by the Insurer of a fraction of the premium.

Proportional rule

Principle of reducing compensation in the event of a claim if the insured capital is insufficient (proportional capital rule), or if the declarations made at the time of underwriting do not reflect the actual risk (proportional premium rule).

Premium rate

Proportion of the insurance premium in relation to the sum insured.



Receipt issued by the insurer proving that the premium has been paid.


Operation whereby the Insurer (the Ceding Company) shares with another company (the Reinsurer), in return for a premium, the pecuniary consequences of commitments made to its own Insureds. This operation dilutes the risk.


Operation that determines the new guaranteed capital, known as the “reduction value”, to which a policyholder who has stopped paying premiums on a life insurance contract will be entitled.


(Wrecked vehicle): when the cost of repairs following a covered automobile claim exceeds the value of the vehicle on the day of the claim, the vehicle is declared a wreck (VEI = Véhicule Economiquement Irréparable) by the expert, who limits his valuation to the Expert’s Report Value.


Amicable or legal action taken by the victim and/or the Insurer (see Defense and Recourse) against the person(s) responsible for the loss suffered and/or the Insurer.


Reinstatement of the effects of a contract that has been suspended. (e.g. for non-payment of premium).


Upward adjustment of capital and/or premiums in an insurance contract.


Uncertain event against which insurance is taken out. By extension, insurers refer to risk as the asset covered by the insurance.

Replacement value

The replacement value allows the insured to be compensated without having to bear the financial burden corresponding to the depreciation (see obsolescence) of the insured asset following a claim.


Guarantee consisting of the reimbursement of net premiums, plus interest if applicable, on the death of the insured before maturity of a contract taken out in the event of life.



When the damage suffered by the insured is caused by a third party, the insurer indemnifies the insured and may take recourse against the liable third party on its own behalf up to the amount of the indemnity it has paid. The insurer is said to be “subrogated” to the insured’s rights and actions against the liable third party.


An increase in the insurance premium due to an aggravation of the insured risk.

Suspension Of Coverage

Temporary interruption of insurance coverage.


Transfer of ownership of the insured item, in the event of a claim, to the insurer against payment to the insured of the full sum insured.


Early payment to the policyholder of a percentage of the savings accumulated under a life insurance contract. Surrender of the entire savings terminates the contract.

Special Conditions

Unlike the General Conditions (see definition), the Special Conditions are specific to each policyholder. They specify the cover taken out, the identity of the policyholder, the insured and the beneficiary, the sum insured and the due dates.


Tacit renewal

Clause allowing automatic renewal of the insurance contract at the end of each coverage period, without the insured having to expressly request this.


Although insurance contracts are not subject to VAT, insurance premiums are subject to a tax on insurance contracts.


The term corresponds to the expiry date of the contract.

Ticket Modérateur

This is the amount remaining to be paid by the policyholder after reimbursement by the insurer.

Third party

An individual or legal entity outside the scope of a contract.


Term used to describe the amicable agreement reached between the parties (insurer/insured or victim) to put an end to a dispute.

Temporary incapacity

A condition that makes it temporarily impossible for a person to work totally (ITT) or partially (ITP) as a result of illness or accident, until consolidation.

Technical reserves

Amounts accumulated by insurance and reinsurance companies to meet their commitments to policyholders and beneficiaries.


Early termination of an insurance contract at the request of either party, or by operation of law when provided for by law. Termination requires special formalities and is governed by precise rules set out in the contract’s general terms and conditions.



Term used when the sum declared to the insurer and covered by the insurance contract is less than the actual value of the insured risk.


A legal or natural person who takes out insurance for his or her own account or for the account of another, and who thereby commits himself or herself to the insurer for payment of the premium.

Use value

This is the replacement value of the property on the date of the claim, after deduction of depreciation (see definition of depreciation).



A special provision that deviates from, modifies or contradicts a general provision of the contract.


When a vehicle is scrapped for economic or technical reasons, it is referred to as a wreck (see definition of scrapped).

Whole life

This type of insurance is not very common, given its high cost. It guarantees payment of a lump sum to the designated beneficiaries on the death of the insured, regardless of the date of death.