(i) Share of a loss payable by an Insurer when two or more Insurers cover the same loss. (ii) Insurer’s share of a loss under as Coinsurance or similar provision. (iii) Portion of the premium for group Insurance paid by an employee.
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MEDICAL,USA: 1. Full or partial payment amount by an insurance company under an insurance contract that may be one or two or more contracts that cover the same loss. 2. A part of the insurance premium that is paid by either the policyholder or the insured or both. 3. Act of contributing.
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UK: A corollary of indemnity meaning an equitable division between insurers where two or more insurers cover the same insured and the same risk. Each insurer pays a rateable proportion of the loss either in proportion to the sums insured (the maximum liability method) or in proportion to their respective independent liabilities (the independent liability method). Insurers may avoid contributing to ‘doubly’ insured losses by using a noncontribution clause.
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A term that can have several meanings in the context of insurance. A contribution can be the portion of a loss paid by each insurer, when two or more cover the same loss. Or the term can mean the portion of a premium paid by the insured. The term can also mean the portion of the loss paid by the insurer under coinsurance.
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UK: the amount paid by each insurer in respect of a loss where two or more insurers cover the same insured in respect of the same risk, this division of a loss between insurers arises from the principle of indemnity and ensures equitable distribution of losses between insurers.