The total cost of accidents, including those that are not insurable as well as those that are. Large non-insurable costs provide an impetus for loss control.
Insurance Encyclopedia
Accident Frequency
This is one method for measuring the effectiveness of loss prevention services. The rate of occurrence of accidents, often expressed in terms of the number of accidents over a period of time as well as accident severity.
Accident Insurance
Insurance against injury, loss, or damage to persons, property, or liability that is not covered by life, fire, or marine insurance.
US MEDICAL: Health insurance that protects a person in the event of an accidental bodily injury. Insurance benefits can help to replace a portion of earned income lost due to disability caused by an accident. Accident insurance may also cover medical expenses and indemnity for death, limb or sight loss as a result of an accident.
Accident perils
Health insurance underwriters use this classification to assess the type and degree of danger represented by a specific occupation, such as fire exposure, use of dangerous machinery, handling of heavy objects, and the risk of falling.
Accident Prevention
Engineering and inspection services provided by an insurance company or an independent organisation with the goal of removing or reducing dangerous conditions in order to prevent losses.
Accident Rate
Accident experience in relation to a base unit of measurement, such as motor vehicle rail/road and aircraft accidents: for example, number of accidents compared to miles operated or passengers carried, ‘number of deaths per 2,000,000 miles travelled,’ and so on. Although an injury rate is more commonly used, occupational accident experience can be expressed as the number of accidents per 100,000 employee-days worked, per 100 employees, or per employee-year (200 working days).
Accident Severity
A measure of the seriousness or severity of losses rather than the number of losses. It is calculated in terms of lost work time rather than the number of individual accidents. It is yet another way to assess the efficacy of loss prevention services.
Accident year
The calendar or accounting year in which an accident or loss occurred.
Accident Year Experience
Measures premiums and losses relating to accidents that occurred during a twelve-month period. Earned premiums and ultimate losses from loss events occurring within the same twelve-month accounting period are used to calculate underwriting results, regardless of when the losses are actually reported, booked, or paid.
See also Calendar Year Experience and Policy Year Experience.
Accident Year, Accident Year Losses, Accident Year Statistics
Method of collecting data on losses, particularly liability insurance claims, that charges to a given calendar year the total costs of accidents that occur in that year, regardless of when these costs are incurred. Sometimes called calendar-accident year statistics.