Insurance Compensation

Compensation, Insurance

 

the amount paid by an insurance company to the insured when covered damages occur. In the USSR, insurance compensation is paid by the Central Administration of State Insurance, or Gosstrakh. The amount paid depends on whether or not the property was insured for its full value and on the extent of the damage. Under obligatory insurance, damages are reimbursed in the full amount of the coverage in cases of total loss of property and in the specific sum provided for by the policy in cases of partial damage. Under a voluntary insurance contract, insurance compensation is paid in an amount equal to the losses incurred but within the limits of the coverage (for example, the Civil Code of the RSFSR, art. 388).

Two systems of computations are used to determine the amount of a loss in cases of partial damage to property not insured for its full value. With the proportional liability system, which is more common, the ratio of insurance compensation to the value of the damages is equal to the ratio of the coverage to the insured interest, that is, the actual value of the insured property. Under the system based on the first loss principle, which is used to insure chattels and transportation, insurance compensation is paid in the amount of the full value of the incurred damages but within the policy’s coverage.

References in periodicals archive ?
The amount of taxable gain is generally the difference between the insurance compensation or other payments to victims and the amount they paid for the property, plus the cost of any improvements made before it was destroyed.
Crown Life Insurance Company is a member of the Canadian Life and Health Insurance Compensation Corporation (CompCorp).
Contract award: insurance compensation (professional) liability.
And it jacked-up its payment protection insurance compensation bill from just pounds 16m to pounds 121m.
If there are counter-claims of the bank to a depositor, the sum of corresponding claims is deducted from deposits (accounts) amount, at calculation of the sum of insurance compensation.
Insurance compensation work for the construction of a "first cycle" of the healthcare division of the University of Picardie Jules Verne in Amiens teaching building.
Administrators have applied to the Insurance Compensation Fund for EUR600million to cover losses that Anglo Irish Bank and US insurance giant Liberty Mutual - who've agreed to buy the firm - are unwilling to take on.
Acceptance of applications and payment of deposit insurance compensation for JSC EUROSIB BANK deposit holders is administered by designated Sberbank branches.
The State is to make up the difference and will use the Insurance Compensation Fund by slapping a 2% levy on every nonlife insurance policy issued.
1 million insurance compensation for an ATCL aircraft that met with an accident at Mwanza airport in April 2012.
The use of the Insurance Compensation Fund has emerged as a key part of the sale of the insurer, which is entering its final stage.
Qliance provides major care service for $64 to $129 every month, functioning externally of the traditional insurance compensation system.

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