A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Compulsory insurance

A general term for insurance made mandatory by law; for example, automobile insurance.
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Any form of Insurance which is required by law or directives of the Government. Like compulsory Insurance for death of or bodily injury to third parties arising out of the use of Motor Vehicles on the public highway is as per mandatory provisions of the Motor Vehicles Act. Similarly, National Agricultural Insurance (NAIS) is compulsory for Loanee (borrowing) farmers.
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UK: Insurance that has to be effected to comply with the law. Failure to comply is a criminal offence. The aim is to ensure that an injured person does not have to rely upon the defendant’s wealth to secure his compensation. Examples of compulsory insurance legislation include the Road Traffic Act 1988 and the Employers’ Liability (Compulsory Insurance) Act 1969. Obligations to insure may arise under contracts as with the Joint Contract Tribunal, or the rules of professional institutions or regulatory bodies, e.g. FSA.

Computation years

For Social Security benefits, years with highest earnings selected from the base years. Total earnings in the computation years are added together and divided by the number of months in those years to obtain the average monthly earnings (AME).

Computer coverage

Covers computer equipment and peripherals beyond the normal coverage provided in homeowner’s insurance policies, typically between $1,000 and $3,000. Some policies are also designed to cover damage and/or theft of portable equipment, such as laptop computers, and even the costs of data recovery. In commercial lines, there may be separate policies to provide coverage for exposure to the computers themselves or liability from computer or cyber incidents. Also could be called cyber coverage, and could be a policy added to a property or liability policy, or a separate policy itself.