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INCOMPLETE INSURANCE (UNDERINSURANCE) – is an insurance of interest below its actual value. If the policy is issued for the amount lower than the actual value of interest being on the risk, the risk is considered underinsured. In this case the amount of difference between sum insured and amount as per the policy, to which the interest shall be insured based on its actual value, falls under liability of the insured.

INSUPERABLE FORCE – an event of emergency, which it was impossible to foresee and prevent. In insurance practice it is called force majeure circumstances and can be included in an insurance agreement.

INSURABLE INTEREST – a measure of material interest in insurance; expressed in sum insured and conditions of an insurance policy.

INSURANCE – economic category – system of forms and methods of formation of specialized funds of monetary means and its use for indemnity of loss in various unforeseen unfavorable phenomena, as well as for render of help to citizens upon occurrence of definite events in their life. As per the form of carrying out, insurance is divided to obligatory (in pursuance of a law) and voluntary (by virtue of a treaty of parties). As per the kind of insurance interests, insurance is divided to personal (life, health of citizens), property and civil liability for the harm against third persons. A special sphere of insurance is a reinsurance.

INSURANCE AGENT - acquirer: individual person or legal entity, which brings clients and insurers together or concluded an insurance agreement for and on behalf of an insurer.

INSURANCE AGREEMENT – agreement (legal deal) between insured and insurer (often concluded through intermediary of insurance agent or insurance broker), regulating their mutual liabilities in accordance with condition of the present kind of insurance. in certification of the concluded agreement, the insurer issues an insurance policy for the insured.

INSURANCE BROKER - acquirer: individual person or legal entity, which agrees with an insurance company upon risk coverage on behalf of a client, and also consults on insurance issues.

INSURANCE FIELD - maximum quantity of objects (for example, automobiles), which can be covered by insurance in a definite region. It is expressed in percentage of coverage. Maximum coverage of insured market reaches 100%.

INSURANCE FUND – element of social reproduction, provisions of material and monetary funds, formed for the account of payments of insurers and being in operation and organization administration of the insurer. Insurance fund is conditioned by insurable interests. Part of resources of an insurance fund has to permanently be in liquid form; in kind of bank deposits, stocks quoted on the exchange, state treasury obligations, etc.

INSURANCE INDEMNITY – an amount of payment from insurance fund to cover the loss in property insurance and civil liability insurance of an insured for material harm against third persons. Insurance indemnity can be equal or lesser then the sum insured, due to concrete circumstances of insured event and conditions of insurance agreement (for example, availability of deductibles).

INSURANCE INTEREST – direct harm, which can be incurred by the insured upon insured event. Sum insured under an agreement cannot exceed insurance interest of the insured.

INSURANCE MARKET of insurers. Necessary conditions of effective functioning of the insurance market – information and organizational frames. An insurer has to know everything about existing insurable interests, and the insured – about existing possibilities to conclude one or another insurance agreement. This is the form of connection between participants of insurance legal relations. in the narrow sense, insurance market – is an aggregate of insurance companies. Activity of insurance market is regulated by insurance supervision.

INSURANCE OBJECTS – life, health and employability of citizens – in personal insurance; buildings, constructions, transport vehicles, freight, collections, household property, transportable cargo and other material values – in property insurance; civil liability of insured for a material loss, caused to third persons (for example, by operation of means of increased danger), - in civil liability insurance.

INSURANCE POLICY - monetary instrument of a standard form, issued by an insurer to an insured for confirmation of a concluded insurance agreement and containing its conditions. There are standard and individual insurance policies. Standard insurance policies are issued by an insurer for a wide range of typical insurance risks, bearing mass character. Individual insurance policies (for example, insurance of celebrities’ appearance) represent personal insurable interests, usually connected with professional carrier. All the insurance policies can stipulate special conditions of agreement, which meet specific insurable interests and connected with these actions (for example, testamentary disposition of an insured). Inclusion of special conditions to an insurance policy is usually accompanied by application of bonus to an insurance premium, which is expressed by absolute or relative values.

INSURANCE PORTFOLIO – actual quantity of insured objects or number of insurance agreements, documentary confirmed in business of an insurer;

an aggregate of insurance risks, accepted by an insurer for a determined period (one year usually).

INSURANCE PORTFOLIO – aggregate of risks accepted for insurance by an insurer for a determined period.

INSURANCE PREMIUM – paid insuraable interest; payment for insurance risk of an insured to an insurer in pursuance of law or insurance agreement. It is defined on the basis of tariff rate, sum insured, term of insurance and some other factors. It is paid by an insured as a lump sum in advance by entering into insurance relations or partially (for example, on a monthly, quarterly basis) during the whole term of insurance. the volume of insurance premium is reflected in an insurance policy.

INSURANCE RISK – probability of insurance event occurrence. It expresses a volume of possible liability of an insurer in one or another kind of insurance. It is determined on the basis of statistics data, empirically, and on the basis of probability theory. veracity of insurance risk is checked with the help of construction of various mathematical models (actual calculations). It is significant for determination of size of the insurance fund;

INSURANCE SUPERVISION – control over activities of insurers authorized thereon by a governmental body.

INSURANCE SUPERVISION – state administration authority for control over insurance activity.

INSURANCE VALUATION – value of property, determined for the purpose of insurance. In practice insurance valuation per actual value, per declared value not higher than the limit stipulated by an insurer, per market prices and others are used. If necessary, an insurer engages qualified experts in for right insurance valuation. Information about insurance valuation serves as the initial basis for definition of tariff rate and insurance premium.

INSURANCE VALUE – real, actual value of insurance object.

INSURED – individual person or legal entity, expressing its insurable interest and entering into civil liability relations with an insurer in pursuance of law or bilateral deal (contract);

INSURED CASE – potentially possible causation of harm to object of insurance. See insured event.

INSURED EVENT – actually occurred event, entailed responsibility of an insurer to pay indemnity to an insured from resources of insurance fund. Payment of indemnity is usually precedes the detailed investigation of a fact and circumstances of an insured event from the point of view of its veracity and exclusion of intentional acts or inactions (intention) of an insured, initiating its destructive or injurious consequences.

INSURER – individual person or legal entity, carrying out insurance, managing creation and expenditure of insurance fund. In form of organization insurer can be joint-stock insurance company, mutual insurance society, state insurance organizations. In economics of market type joint-stock insurance companies are the main insurers.

INSURER LIABILITY LIMIT – an amount, which an insured can obtain from an insured in case of loss resulted from dangers, covered by insurance.

INVESTMENTS – long-term injection of resources of the insurer (material and intellectual values) to production and other activities for the purpose of profit earning. Investment kinds of the insurer are monetary funds (deposits), stocks, fixed contributions and other securities, movable and estate property, proprietary rights, know-how, etc. There are financial investments, capital investments, stock of commodity and material valuables.